cost accounting by deleon

8/10/2019 Cost Accounting by DeLeon

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Cost Accounting

Chapter 2 - Costs Concepts and classification

Problem 1 Problem 2

1. Direct 6. Direct 1. Manufacturing 6. Manufacturing

2. Indirect . Direct 2. !elling . Administrati"e#. Direct $. Indirect #. Manufacturing $. !elling

%. Direct &. Direct %. !elling &. Administrati"e

'. Direct 1(.Direct '. Administrati"e 1(.!elling

Problem #

1. )ariable Product Direct

2. )ariable Product Direct

#. *i+ed Product Indirect

%. )ariable Product Direct

'. *i+ed Product Indirect

6. *i+ed Period Indirect. *i+ed Period Indirect

$. )ariable Period Direct

&. *i+ed Product Indirect

1(.*i+ed Period Indirect

Problem % ,ug Compan

1. *i+ed Period 6. )ariable Period

2. *i+ed In"entoriable . )ariable In"entoriable

#. )ariable In"entoriable $. *i+ed In"entoriable

%. )ariable In"entoriable &. *i+ed Period

'. *i+ed In"entoriable 1(. *i+ed In"entoriable

Problem ' ounin Manufacturing Compan

1. Direct materials '(/(((

Direct labor 6(/(((

Prime cost 11(/(((

2. Direct labor 6(/(((

*0 1(/((( &/((( 2'(((3 %%/(((

Con"ersion costs 1(%/(((

#. Direct materials '(/(((

Direct labor 6(/(((

*actor o"erhead %%/(((

Product costs 1'%/(((

Problem 6 Mother 4oose Compan

1. Prime costs - %#(/(((

2. Con"ersion cost - '2'/(((


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# In"entoriable cost - 1(/(((

%. 5otal period costs - #('/(((

Problem ,lanche Corporation

1. Direct materials used P #(.((

Direct labor 2(.(( )ariable manufacturing o"erhead 1'.((

)ariable mar7eting #.((

5otal "ariable cost per unit 6$.((

8 9o. of units produced and sold 2(/(((

5otal "ariable costs per month P 1/#6(/(((

2. *i+ed manufacturing o"erhead P 1(.((

*i+ed mar7eting costs %.((

5otal fi+ed cost per unit 1%.((

8 9o. of units produced and sold 2(/(((

5otal fi+ed costs per month P 2$(/(((

Page 2 Chapter 2

Prblem $

1. Direct materials P 6(.((

Direct labor #(.((

)ariable manufacturing o"erhead &.((

5otal "ariable manufacturing cost per unit P &&.((

2. 5otal "ariable manufacturing cost per unit P &&.((

)ariable mar7eting and administrati"e 6.((

5otal "ariable costs per unit 1('.((

#. 5otal "ariable manufacturing cost per unit P &&/((

*i+ed manufacturing o"erhead #(/(((:1/2((3 2'.((

*ull manufacturing cost per unit 12%.((

%. *ull manufacturing cost per unit 12%.((

)ariable mar7eting and administrati"e 6.((

*i+ed mar7eting and administrati"e 2(.((

*ull cost to ma7e and sell per unit 1'(.((

Problem & - Chi; Manufacturing Compan

1. Materials put into production P &(/(((

Direct labor &'/(((

Prime costs P 1$'/(((


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2. Direct labor &'.(((

*actor o"erhead

Indirect materials 6(/(((

Indirect labor 2'/(((

0ther o"erhead cost 6(/((( 1%'/((( 5otal con"ersion costs 2%(/(((

#. Direct materials &(/(((

Direct labor &'/(((

*actor o"erhead 1%'/(((

5otal product costs ##(/(((

%. none

Problem 1( ess? )ariable costs

21( + 2#.($3 %/$%

1%' + 2#.($3 @@@@@ #/#%

*i+ed cost 62$ 62$

Page #

Problem 12


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1 )ariable cost per hour = %/%( 2/$2(

'2( - #((

= .'( per hour

2. '2( hours #(( hours

5otal %/%( 2/$2(

>ess? )ariable cost

'2( + .'( #/&((

#(( + .'( @@@@@ 2/2'(

*i+ed cost '( '(

#. 5otal cost = P '( P/'( 8

%. *i+ed cost P '(

)ariable %2( hrs. + P .'(3 #/1'( 5otal maintenance cost P #/2(

5rue:*alse uestions

1. *alse 6. 5rue 11. *alse 16. 5rue

2. *alse . *alse 12. *alse 1. *alse

#. 5rue $. 5rue 1#. 5rue 1$. 5rue

%. *alse &. *alse 1%. *alse 1&. *alse

'. *alse 1(. 5rue 1'. *alse 2(. 5rue

Multiple choice 5heor

1. , 6. A 11. C 16. ,

2. C . D 12. A 1. ,

#. , $. D 1#. C 1$. A

%. C &. , 1%. , 1&. D

'. D 1(. C 1'. , 2(. ,

Multiple choice Problems

1. A 6. A 11. A 16. A

2. , . C 12. , 1. ,

#. C $. C 1#. , 1$. D

%. C &. A 1%. C 1&. A

'. , 1(. C 1'. , 2(. A

CBAP5 # - C0!5 ACC095I94 CEC>

Problem 1 - am Manufacturing Compan


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Direct materials used '/((( + &(F3

6/'((.((

Direct labor &/((( + F 3

&(/21(.((

*actor o"erhead &(/21( + 12F3 112/62.'(

5otal manufacturing costs 2(/%2.'(Gor7 in process/ ess? Gor7 in process/ ess? *inished goods Ma #1 2%/(((

Cost of goods sold #2'/$((

Problem # ,lanche Corporation

1/ Income !tatement

!ales 1/2((/(((

>ess? Cost of goods sold '1/(((

4ross profit %%&/(((

>ess? 0perating e+penses

Mar7eting 6(/(((

Administrati"e 12/(((

2/(((


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9et income #/(((

,lanche Corporation

2. Direct materials used

Materials/ March 1 '(/(((

Purchases %((/(((

5otal a"ailable %'(/(((

>essH Mat.- March #1 %2/(((

%($/(((

Direct labor 21(/(((*actor o"erhead 1%(/(((

5otal manufacturing costs '$/(((

Gor7 in process/ March 1 1((/(((

Cost of goods put into process

$'$/(((

>ess? Gor7 in process/ March #1 &'/(((

Cost of goods manufactured

6#/(((

*inished goods March 1 &(/(((

5otal goods a"ailable for sale

$'#/(((

>ess? *inished goods March #1 1(2/(((

Cost of goods sold '1/(((

Problem % - o Compan

1/ ntries

a. Materials 12(/(((

Accounts paable 12(/(((

b. Paroll '%/(((

Githholding ta+es paable 11/2((

!!! Premiums paable 2/%((

Phil Bealth contributions paable #'

Pag-ibig funds contributions paable

1/62(

Accrued paroll #$/%('

Gor7 in process %'/(((


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*actor o"erhead control &/(((

Paroll

'%/(((

c. Materials 2'/(((

Accounts paable 2'/(((

d. *actor o"erhead control '/'&'

!!! premiums paable #/6((

Phil Bealth contributions paable #'

Pag-ibig funds contributions paable 1.62(

e. Gor7 in process '/(((

*actor o"erhead control 1%/(((

Materials $&/(((

f. Accounts paable 1/(((Materials 1/(((

Page 2 Chapter #

g. Accounts paable 1#6/'((

Accrued paroll #$/%('

Cash 1%/&('

h. *actor o"erhead control 16/&((

Miscellaneous accounts 16/&((

i. Gor7 in process '%/(((

*actor 0B Applied %'/((( + 12(F3 '%/(((

. *inished goods 116.(((

Gor7 in process 116/(((

7. Accounts recei"able 1'(/(((

!ales 1'(/(((

Cost of goods sold &(/(((

*inished goods &(/(((

2. !tatement of cost of goods sold

. Direct materials used

Purchases 1%'/(((

>ess? Purchase returns 1/(((

5otal a"ailable for use 1%%/(((

>essH Mat.- 0ctober #1 ''/(((

$&/(((


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Direct labor %'/(((

*actor o"erhead '%/(((

5otal manufacturing costs 1$$/(((

>ess? Gor7 in process/ 0ctober #1 2/(((

Cost of goods manufactured

116/(((>ess? *inished goods March #1 26/(((

Cost of goods sold/ normal &(/(((

>ess? 0A-*0 $/'('

Cost of goods sold/ actual $1/%&'

Problem ' Dar"in Compan

1. ntries

a. Materials 2((/(((

Accounts paable 2((/(((

b. *0Control #'/(((

Accounts paable #'/(((

c. Paroll 21(/(((

G:5a+es paable 1$/'2(

!!! Premium paable

$/%((

Phil Bealth contributions paable 1/12'

P*C paable 6/#((

Accrued paroll 1'/6''

Page %

Gor7 in process 1%(/(((

*actor 0"erhead control #(/(((

!elling e+pense control 2'/(((

Adm. e+pense control 1'/(((

Paroll

21(/(((

d. Accrued paroll 1'/(((

Cash 1'/(((

e. *0 Control 1%/2((

!elling e+pense control 2/#'

Adm. +pense control 1/#'(

!!! prem. Paable 1(/'((

MC paable 1/12'

P*C paable 6/#((


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f. Gor7 in process 1$'/(((

*0 Control #'/(((

Materials 22(/(((

g. Gor7 in process 11%/2((

*0 Control 11%/2((

h. *inished goods %1(/(((

Gor7 in process %1(/(((

i. Accounts recei"able '#&/(((

!ales '#&/(((

Costs of goods sold #$'/(((

*inished goods

#$'/(((

. Cash %('/(((

Accounts recei"able %('/(((

7. Accounts paable 22(/(((

Cash 22(/(((

Page '

2. Cost of goods sold statement

Direct materials used

Materials/ essH Mat.-


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Gor7 in process/


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Page 6

2. Cost of goods manufactured $((/(((*inished goods/


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Gor7 in process/ 0ct. #1 16/(((3

Cost of goods manufactured #($/(((

#. Cost of goods manufactured #($/(((

*inished goods/ 0ct. 1 2/(((

*inished goods/ 0ct. #1 $(/(((3Cost of goods sold #((/(((

Page

%. !ales %((/(((

Cost of goods sold #((/(((3

Mar7eting and administrati"e e+penses %(/(((3

9et income 6(/(((

Problem &


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8 = 1((/((:.2(

= '((/(((

2. GP/ Dec. #1 = '((/(((

#. 5otal manufacturing cost 1/$((/(((

*actor o"erhead 1/$((/((( + 2'F 3 %'(/(((3Direct labor %'(/(((:2F3 62'/(((3

Direct materials used 2'/(((

Problem 11 - Jra Ale+is Corporation

1. Materials put into process 12(/(((

Materials/ Aug. #1 '/(((

Materials/ Aug. 1 6(/(((3

Materials purchased 1#'/(((

Page $

2. Materials put into process 12(/(((Direct labor (/((( $(/(((3 1'(/(((

*actor o"erhead - A (/((( + 12(F3 $%/(((

, $(/((( + $(F3 6%/((( 1%$/(((

5otal manufacturing cost %1$/(((

#. 5otal manufacturing cost %1$/(((

Gor7 in process/ Aug. 1 $(/(((

Gor7 in process/ Aug. #1 6%/(((3

Cost of goods manufactured %#%/(((

%. Cost of goods manufactured %#%/(((

*inished goods/ Aug. 1 '%/(((

*inished goods/ Aug. #1 6(/(((3

Cost of goods sold %2$/(((

Multiple choice

1. A 11. , 21. ,

2. C 12. C 22. D

#. , 1#. , 2#. A

%. A 1%. C 2%. ,'. D 1'. C 2'. 116/(((

6. , 16. D 26. A 9o. ' should be

#F

. D 1. , 2. D

$ C 1$. , 2$. A

&. , 1& , 2&. A

1(., 2(. , #(. ,


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Chapter % -

5rue or *alse

1. *alse 6. 5rue 11. *alse 16.5rue 21. 5rue

2. 5rue . *alse 12. *alse 1. *alse 22. *alse

#. 5rue $. *alse 1#. *alse 1$. *alse 2#. *alse%. *alse &. 5rue 1%. *alse 1&. 5rue 2%. *alse

'. 5rue 1(.*alse 1'. *alse 2(. 5rue 2'. 5rue

Matching

1. a 6. b

2. h . g

#. p $. 7/ l/ m

%. d &. i

'. 7 1(. n

Multiple choice 5heor1/ d 6. d 11. d 16. a 21. c

2. b . a 12. d 1. c 22. b

#. b $. c 1#. c 1$ b 2#. a

%. d &. b 1%. b 1&. b 2%. c

'. d 1(. c 1'. c 2(. b 2'. b

Problem 1 4arcia Compan

1


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Page 2

Accrued paroll #2/$((

Cash #2/$((

6. Gor7 in process ##/%((*actor o"erhead control '/6((

Paroll #&/(((

7. *actor 0"erhead Control #/''

!!! Premiums paable 2/(((

Phil Bealth cont. paable #'

Pag-ibig cont. paable 1/2((

$ *0 Control 1'/(((

Accum Depr. #/(((

Prepaid ins. &'(Accounts paable 11/('(

&. Gor7 in process 26/2(

*0 Applied 26/2(

1(. *inished goods 2/22(

GP 2/22(


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12/6(( 1'/'(( 12/%((

Page #

ess? Materials/ Aug. #1 2%/$((

Ind. Materials 2/(( 2/'(( 21/'((

Direct labor ##/%((*actor o"erhead 26.2(

5otal manufacturing costs $1/62(

Gor7 in process/ Aug. 1 1$/'((

Cost of goods put into process 1((.12(

>ess? Gor7 in process/ Aug. #1 2/&((

Cost of goods manufactured 2/22(

*inished goods/ Aug. 1 2'/(((

5otal goods a"ailable for sale &/22(

>ess? *inished goods/ Aug. #1 6'/'((

Cost of goods sold - normal #1/2(Add. nder applied factor o"erhead 1''

Cost of goods sold #1/$'

Problem 2 - 4olden !hoKer Compan

2.


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Accrued paroll 1%/&6(

Cash 1%/&6(

Page %otal

c. Gor7 in process 1'6/((( *actor o"erhead control 2%/(((

Mar7eting L Adm. +p. Control %(/(((

Paroll 22(/(((

*actor o"erhead control 1%/6(

Mar7eting L adm. +p. Control #/2$(

!!! Premiums paable 11/(((

Phil Bealth contr. Paable %%(

Pag-ibig funds contribution paable 6/6((

!!! Phil Bealth Pag-ibig 5otal'F3 (/.2'F3 #F 3

*0C 1$(/(((3 &/((( #6( '/%(( 1%/6(

M L A +p.control 2/((( $( 1/2(( #/2$(

11/((( %%( 6/6(( 1$.(%(

d. Gor7 in process 216/#'(

*actor o"erhead control 1'/(%(

Materials 2#1/#&(


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Gor7 in process #$(/((

Page '

g. Cash %&%/(((

!ales discount 26/(((Accounts recei"able '2(/(((

h. Mar7eting L Adm. +p. Control #(/(((

*actor o"erhead control 2'/6((

Cash '1/6((

Accum. Depreciation %/(((

i. Accounts paable 1(/(((

Cash 1(/(((

. *actor o"erhead applied $'/'(( Cost of goods sold 6/1((

*0 Control &/%((

! DIC5 >A,0 *AC50E 0)BAD

'/((( %/((( 2/(((

1(#/2(( %%/((( 22/'((

1($/2(( %%/((( 2%/'((

! DIC5 >A,0 *AC50E 0)BAD 1/2(( 2/((( $((

$%/((( $(/((( #6/(((

$'/2(( $2/((( #6/$((

! DIC5 >A,0 *AC50E 0)BAD

21/.&'( #6/((( 2/(((

!50CJCAD!

MA5IA> 8 CI)D I!!D ,A>A9C

%/((( '.(( 2(/(((

2(/((( '.2( 1(%/((( %/((( '.(( 2(/(((

2(/((( ':2( 1(%/(((

%/((( '.(( 2(/(((

1$/((( '.2( /((( 2/((( '.2( 1(/%((


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MA5IA> E

CI)D I!!D ,A>A9C

$/((( #.(( 2%/(((2%/((( #.' &(/((( $/((( #.(( 2%/(((

2%/((( #.' &(/(((

$/((( #.(( 2%/(((

21/((( #.' $/'( #/((( #.' 11/2'(

Problem # - '/$6(

*0 2.#2( 11/$$(

'. 4ross profit 1#/12( 4ross profit 1#/12(

>ess? M L A 2/&(

9et income 1(/1'(

Problem ' - !tar Gars Corporation

eNuirement 9o. 1

1. Gor7 in process '(/(((

Materials '(/(((

2. Gor7 in process 1'(/(((


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2. Gor7 in process 12'/(((

Materials 12'/(((

Page $

#. Gor7 in process %((/(((

Paroll %((/(((

%. Gor7 in process #2(/(((

*0 Applied #2(/(((

'. *inished goods $2(/(((

Gor7 in process $2(/(((

6. Cost of goods sold $'(/(((

*inished goods $'(/(((

. *0 Control ##(/((()arious accounts ##(/(((

Problem - llen


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Cost of goods manufactured #%#/(((

>ess? *inished goods/ end '&/(((

Cost of goods sold 2$%/(((

Page $ = Abner Corporation

1. Direct materials used 2('/(((

Materials end &(/(((Materials beg. &'/(((3

Direct materials purchased 2((/(((

2. 5otal manufacturing costs 6'/(((

*actor o"erhead 1'/(((3

Materials used 2('/(((3

Direct labor costs 2&'/(((

#. Cost of goods a"ailable for sale '/(((

*inished goods/ end 11(/(((3

Cost of goods sold 66'/(((

%. !ales &((/(((

Cost of goods sold 66'/(((3

4ross profit 2#'/(((

Problem & - Pacific Production Compan

1. Materials - April 1 6%/(((

Purchases $%/(((

Materials April #( 6(/(((3

Direct materials used $/(((3

Indirect materials used 1(/(((

2. Accrued paroll April #( 6/(((

Paroll paid %%/(((

Direct labor cost #2/(((3

Indirect labor 1$/(((

#. Direct labor cost #2/(((

*actor o"erhead rate 12'F-

*actor o"erhead applied %(/(((

%. Direct materials $/(((

Direct labor #2/(((

*actor o"erhead %(/(((

5otal manufacturing costs 1'(/(((

Gor7 in process/ beg. $2/(((

Gor7 in process/ end &%/(((3

Cost of goods manufactured 1#$/(((

'. Cost of goods manufactured 1#$/(((


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*inished goods/ April 1 2&6/(((

*inished goods/ April #( #(%/(((3

Cost of goods sold 1#(/(((

Page 1(

Problem 11 5able and Chair Manufacturing Compan

13 Materials 1'/(((Accounts paable 1'/(((

23 Gor7 in process 11/%$(

*0C %(

Materials 11/'2(

#3 Paroll '/%%'

Accrued paroll '/%%'

Gor7 in process %/6%'

*0C $((Paroll '/%%'

%3 *0C 2/$'

ent +pense Paable 1/'((

Accum. Depreciation Machines 16(

Accum. Depreciation *actor ,uilding %&(

tilities +pense Paable 22'

Paroll 5a+es Paable #((

'3 Gor7 in process '/261.2'

*0 Applied '/261.2'

63 *inished goods 21/#$6.2'

Gor7 in process 21/#$'.2'


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*inished goods %/(&2.'(

Page 11

Problem 11 Cand Corporation

13 ess? Applied *0 #62/'(( 12/'((

Cost of goods sold actual %22/'((

'3 *4/ In"entor


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Gor7 in process/ ess? Applied 6#/((( 2((

Cost of goods sold/ normal 1'(/(((

Problem 1% 9ona Compan

13 nits sold 12/#((

*inished goods/ end #((

*inished goods/ beg 1((3

nits completed:manufactured 12/'((

23 Direct materials used 1/$%/((

Direct labor 2/12'/$((

*actor o"erhead 1/(26/'((

5otal mfg. cost:cost of goods manufactured '/(((/(((

Di"ide b units completed 12/'((


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Cost of goods manufactured per unit %((:unit

Page 1#

#3 *rom *inished goods/ beg. 1(( units + P %#( 3 %#/(((

*rom units completed during the period 12/2(( + P %((3 %/$$(/(((Cost of goods sold %/&2#/(((

0r

*inished goods/ beg. %#/(((

Cost of goods manufactured '/(((/(((

*inished goods/ end #(( + P%((3 12(/(((3

Cost of goods sold %/&2#/(((

M>5IP> CB0IC P0,>M!

1. A 11. 0B I! APP>ID A5 12'F 0* D>C0!5 - ,

2. A 12/ A 21. C#. C 1#. C 22. C

%. D 1%. D 2#. C

'. A 1'. A 2%. ,

6. , 16. D 2'. %6/(((

. , 1. C 26. D

$. A 1$. C 2. ,

&. A 1&. D 2$. ,

1(. , 2(. C 2&. D

#(. ,

CBAP5 ' - !B ACC095I94

5:*A>!

1. 5rue 6. 5rue

2. 5rue . 5rue

#. *alse $. 5rue

%. 5rue &. 5rue

'. 5rue 1(. *alse

Problem 1 - A


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aK and In Process 1/(((

Cost of goods sold 1/(((

%3 Cost of goods sold 12/((

*inished goods 12((

*inished goods 1/((

Cost of goods sold 1/((

Problem 2 Magnolia Corporation

C0C5I09? Direct labor cost P #'(/(((O *actor o"erhead P#$(/(((

13 aK and In Process %%%/(((

Accounts paable %%%/(((

23 *inished goods %%#/(((aK and In process %%#/(((

Purchases %%%/(((

Mat. In IP beg 2#/%((-2/%((3 21/(((

Mat. In IP end 2'/6((-#/6((3 22/(((3

Mat. Content of *4 %%#/(((

Cost of goods sold #(/(((

Accrued paroll #'(/(((

*0 Applied #$(/(((

Page 2

#3 Cost of goods sold %%/(((

*inished goods %%/(((

Mat. Content of *4 %%#/(((

Mat. In *4 beg. 2%/(((-$/(((3 16/(((

Mat. In *4 end 1&/(((-/(((3 12/(((3

Mat. Content of units sold %%/(((

%3 aK and In Process 1/2((

Cost of goods sold 1/2((

Con"ersion cost in IP end #/6((

Con"ersion cost in IP beg 2/%((3

Adustment 1/2((

'3 Cost of goods sold 1/(((

*inished goods 1/(((


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Con"ersion cost in *4 end /(((

Con"ersion cost in *4 beg $/(((3

Adustment 1/(((3

Problem # Pocahontas Manufacturing Compan1. Materials purchased #%6/(((

Materials in IP beg 11/((( 1/2((3 &/$((

Materials in IP end 12/%(( 1/((3 1(/((3

Materials bac7flushed from IP to *4 #%'/1((

2. Materials bac7flushed from IP to *4 #%'/1((

Materials in *4 beg 12/((( %/(((3 $/(((

Materials in *4 end &/$(( - #/1((3 6/((3

Materials bac7flushed from *4 to Cof4! #%6/%((

#3 a3 aK and In process #%6/(((Accounts paable #%6/(((

b3 Cost of goods sold 2'(/(((

Accrued paroll 1((/(((

*0 Applied 1'(/(((

c3 *inished goods #%'/1((

aK and In Process #%'/1((

d3 Cost of goods sold #%6/%((

*inished goods #%6/%((

Page #

e3 aK and In Process '((

Cost of goods sold %((

*inished goods &((

IP *4

nd 1/(( #/1((

,eginning 1/2((3 %/(((3

Increase decrease '(( &((3

Problem % ,arbie Mfg. Compan

Additional information Direct labor $(/(((O factor o"erhead 6(/(((

13 aK and In Process 1((/(((

Accounts paable 1((/(((

23 *inished goods &&/$'(

aK and In Process &&/$'(


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Materials purchased 1((/(((

Materials in IP beg. '/(((-'((3 %/'((

Materials in IP end '/2'(-6'(3 %/6'(3

Materials bac7flushed from IP &&/$'(

#3 Cost of goods sold 1(2/$'(

*inished goods 1(2/$'(

Materials bac7flushed from IP &&/$'(

Materials in *4 beg. 11/2'(-#.2'(3 $/(((

Materials in *4 end /'((-2/'((3 '/(((3

Materials bac7flushed from Cof4! 1(2/$'(

%3 Cost of goods sold 1%(/(((

Accrued paroll $(/(((

*0 Applied 6(/(((

'3 aK and in process 1'(

Cost of goods sold 6((

*inished goods '(

IP *4

nd 6'( 2/'((

,eginning '((3 #/2'(3

Increase decrease3 1'( '(

Page #

Problem ' Chi; Manufacturing Compan

13 Materials purchased 2%6.(((

Materials in IP beg. 1%/'((-/2((3 /#((

Materials in IP end 22/%((-1'/((3 6/((3

Materials bac7flushed from IP to *4 2%6/6((

23 Materials bac7flushed from IP to *4 2%6/6((

Materials in *4 beg. 16/(((-$/$((3 /2((

Materials in *4 end 1&/$((-1#/1((3 6/((3

Materials bac7flushed from *4 to Cof4! 2%/1((

#3 Materials purchased 2%6/(((

IP beg. 1%/'((

*4 beg. 16/(((

Direct labor &$/(((

*actor o"erhead 12'/(((


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IP end 22/%((3

*4 end 1&/$((3

Cost of goods sold %'/#((

%3 a3 aK and in process 2%6/(((

Accounts paable 2%6/(((

b3 *inished goods 2%6/6((

aK and in process 2%6/6((

c3 Cost of goods sold 2%/1((

*inished goods 2%/1((

d3 Cost of goods sold 22#/(((

Accrued paroll &$/(((

*0 Applied 12'/(((

e3 aK and in process $/'((

*inished goods %/#((

Cost of goods 12/$((

IP *4

9D 1'/(( 1#/1((

,4I99I94 /2((3 $/$((3

Increase Decrease3 $/'(( %/#((

CBAP5 6 ACC095I94 *0 MA5IA>!

Problem 1 - 9orman Compan

@@@@@@@@@@@@@

a3 0 = : 2 + $/((( + %(

2'

= 16( units

0rdering cost = 9o of orders + ordering cost

= $/((( + %(

16(

= 2/(((

Carring cost = A"erage in"entor + 2'

= 16( + 2'

2


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6(( + &.(( '/%((

2 $(( + 6.(( %/$((

2(( + .(( 1/%((

2(( + .(( 1.%((

%(( + $.(( #/2((

6(( + &.(( '/%((

Cost of materials issued = %/$(( %/$(( 1/%(( = 11/(((

Cost of ending in"entor = 1/%(( #/2(( '/%(( = 1(/(((

2/ A)A4

ecei"ed Issued ,alance

1 1/6(( + 6.(( &/6((

' %(( + .(( 2/$(( 2/((( + 6.2( 12.%((

& %(( + $.(( #/2(( 2/%(( + 6.'( 1'/6((

16 $(( + 6.'( '/2(( 1/6(( + 6.'( 1(/%((

2% 6(( + &.(( '/%(( 2/2(( + .1$ 1'/$((

2 1/((( + .1$ /1$( 1/2(( + .1$ $/62(

Cost of materials issued = '/2(( /1$( = 12/#$(

Cost of ending in"entor = $/62(

Problem ' Bea"en L arth

1. *I*0

Issued = 6(( + %.(( = 2/%((

Cost of in"entor - 2(( + '.(( =- 1/(((

'(( + %.'( = 2/2'( %(( + %.(( = 1/(((

Page #

2. GI4B5D A)A4


1 1/((( + %.(( %/(((

# 2'( + %.(( 1/((( '( + %.(( #/(((

' '(( + %.'( 2/2'( 1/2'( + %.2( '/2'(

6 1'( + %.2( 6#( 1/1(( + %.2( %/62(

1( 11( + %.2( %62 &&( + %.2( %/1'$11 1(3+ %.2( %23 1/((( + %.2( %/2((

1' '(( + '.(( 2/'(( 1/'(( + %.% 6/((

2( #((3 + '.(( 1/'((3 1/2(( + %.## '/2((

26 1(( + %.## %## 1/1(( + %.## %/6

Problem 6 !terling Compan


33/86

A. PP5A>

1. *I*0


1 #(( + 1.'( '/2'(

$ 2(( + 1'( #/'(( 1(( + 1.'( 1/'(

1( &(( + 1$.(( 16/2(( 1(( + 1.'( 1/'( &(( + 1$.(( 16/2((

1$ 1(( + 1.'( 1/'(

'(( + 1$.(( &/(((

%(( + 1$.(( /2((

2( 1/2(( + 1$/2' 21/&(( %(( + 1$.(( /2((

1/2(( + 1$.2' 21/&((

2' %(( + 1$.(( /2((

6(( + 1$.2' 1(/&'(

6(( + 1$.2' 1(/&'(

2. A)A4


1 #(( + 1.'( '/2'( $ 2(( + 1.'( #/'(( 1(( + 1.'( 1/'(

1( &(( + 1$.(( 16/2(( 1/((( + 1.&' 1/&'(

1$ 6(( + 1.&' 1(/( %(( + 1.&' /1$(

2( 1/2(( + 1$.2' 21/&(( 1/6(( + 1$.1' 2&/($(

2' 1((( + 1$.1' 1$/1' 6(( + 1$.1' 1(/&(6

Problem ,edroc7 Compan

a. >oss due to spoiled Kor7 is spread o"er all obs

1. Gor7 in process 1/#2(/(((

Materials #6(/(((

Paroll %$(/(((*0 Applied %$(/(((

Page %

2. !poiled 4oods $/(((

*0 Control $/'((

Gor7 in process 1(( + 16'3 16/'((

#. *inished goods 1/#(#/'((

Gor7 in process 1/#(#/'((

nit cost = 1/#(#/'((:/&(( = 16'

,/ >oss due to spoiled Kor7 is charged to the specific ob

1. Gor7 in process 1/#2(/(((

Materials #6(/(((

Paroll %$(/(((

*0 Applied %$(/(((

2. !poiled 4oods $/(((


34/86

Gor7 in process $/(((

#. *inished goods 1/#12(((

Gor7 in process 1/#12/(((

Problem $ Jralei Co.1. A4C is charged Kith the cost of defecti"e units

a. Gor7 in process 16/(((

Materials $(/(((

Paroll %(/(((

*0 Applied %(/((( + 1%(F3 '6/(((

b. Gor7 in process 2#/2((

Materials %/(((

Paroll $/(((

*0 Applied 11/2((

c. *inished goods 1&&/2((

Gor7 in process 1&&/2((

2. Cost of correcting defecti"e Kor7 in not charged to A4C

a. Gor7 in process 1$(/(((

Materials $(/(((

Paroll %(/(((

*0 Applied %(/((( + 1'(F3 6(/(((

b. *0 Control 2%/(((

Materials %/(((

Paroll $/(((

Page '

c. *inished goods 1$(/(((

Gor7 in process 1$(/(((

Problem & >ittle Mermaid

1. Charged to specific ob

a. Gor7 in process '/(((

Materials 2'/(((

Paroll 2(/(((

*0 Applied 2(/((( + 1'(F3 #(/(((

b. Gor7 in process 1/2'(

Materials '((

Paroll #((

*0 Applied %'(

c. *inished goods 6/2'(


35/86

Gor7 in process 6/2'(

2. Charged to all production *0 rate should be 16(F of direct labor cost3

a. Gor7 in process /(((

Materials 2'/(((

Paroll 2(/(((*0 Applied 2(/((( + 16(R3 #2/(((

b. *0 Control 1/2$(

Materials '((

Paroll #((

*0 Applied #(( + 16(F3 %$(

c. *inished goods /(((

Gor7 in process /(((

Problem 1( - 9icole Compan1. Cost to correct defecti"e units charged to specific ob

a. Gor7 in process &/(((

Materials '/(((

Paroll 2/(((

*0 Applied 2(/((( + 1'(F3 2/(((

b. Gor7 in process 1((

Materials 6(

Paroll 2(

*0 Applied 2(

Page 6

c. *inished goods &/1((

Gor7 in process &/1((

2. Charged to all production

a. Gor7 in process &/(((

Materials '/(((

Paroll 2/(((

*0 Applied 2(/((( + 16(R3 2/(((

b. *0 Control 1((

Materials 6(

Paroll 2(

*0 Applied #(( + 16(F3 2(

c. *inished goods &/(((

Gor7 in process &/(((


36/86

Problem 11 Mar"in Corporation-

1. Gor7 in process #((/(((

Materials 11/(((

Paroll 1((/(((

*0 Applied $#/(((

2. Gor7 in process %/#'(

Materials 1/6'(

Paroll 1/'((

*0 Applied 1/2((

#. !poiled goods $2'

Gor7 in process $2'

%. *inished goods #(#/'2'

Gor7 in process #(#/'2'

Problem 12 Ale+is Compan

1. Charged to specific ob

a. Gor7 in process ((/(((

Materials #'(/(((

Paroll 1'(/(((

*0 Applied 2((/(((

b. !poiled goods 6(( + '(3 #(/(((

Gor7 in process #(/(((

Page

c. *inished goods 6(/(((

Gor7 in process 6(/(((

2. Charged to all production

a. Gor7 in process 1(/((( + (3 ((/(((

Materials #'(/(((

Paroll 1'(/(((

*0 Applied 2((/(((

b. !poiled goods #(/(((

*0 Control 12/(((

Gor7 in process 6(( + (3 %2/(((

c. *inished goods 6'$/(((

Gor7 in process &/%(( + (3 6'$/(((


37/86


38/86

Materials %6/(((

Paroll 1%/(((

*0 Applied #(/(((

b. !poiled goods #/(((

Gor7 in process #/(((

c. *inished goods $/(((

Gor7 in process $/(((

5:*A>!

1. 5rue 6. *alse 11. 5rue

2. *alse . *alse 12. *alse

#. *alse $. *alse 1#. *alse

%. 5rue &. *alse 1%. *alse

'. 5rue 1(. 5rue 1'. *alse

Multiple choice

1/ a 6. b 11. a 16. d

2/ b . b 12. a 1. b

#/ d $. a 1#. c 1$. b

%/ a &. (( at '/%(( 1%. c 1&. a

'/ c 1(. b 1'. d 2(. b

CBAP5 - ACC095I94 *0 *AC50E 0)BAD

Problem 1 Denmar7 Compan

*0 rate = 216/((( 216/((( 216/((( 216/((( 216/(((

&(/((( 2/((( units 1/6(( MBrs. 2%(/((( %$/((( D>Brs:

2%(Fof DMC P#.((:unit P1#':MBr. &(F of D>C P%.'(:D>Br.

Problem 2 - Colossal Corporation

*0 rate = 2(/((( 2(/((( 2(/((( 2(/((( 2(/(((

'((/((( '2/1(( units 6&/((( MBrs. $'/((( D>Brs. 6'/(((

%1/%(Fof DMC P#/&:unit P#.((:MBr P2.%%:D>Br. 2.(6FofD>C

Problem # Manila Compan

1. *0 rate = P6/'((:1'/((( D>Brs. = P %.'(:D>Br.

2. Applied *0 = 16/((( Brs. + P%.'( = P 2/(((

#. Actual *0 P 6&/(((

>ess? Applied 2/(((


39/86

0"erapplied *0 P #/(((3

Problem % - ller Corporation

1. 6(( &%( 1/%(( '/12( $/(6(

*0 1/($( 1/6&2 2/'2( &/216 1%/'($

505A> 1/&$( #/12 %/6%( 1$/'#6 2$/$6$

Problem ' ubi Compan

1. *0 rate P 6(/((( P 6(/((( P6(/(((P 6(/((( %(/((( D>Brs. 2'/((( MBrs.

1((Fof D>C P 1.'(:D>Br. P2.%(:MBr.

Page 2

2.

a3 *actor o"erhead Kas based on direct labor cost

1&/%(( 2%/6$( 2$/6(( 26/16( %(/((( 1$/$((


40/86

Problem 6 5hermal Corporation

1. Direct method

P1@@@ P2@@@ !1@@@ !2@@@ Direct cost P &(/((( P 6(/((( P 2(/((( P #2/(((

Allocated cost

!1 1(/((( 1(/((( 2(/(((3

!2 2(/((( 12/((( #2.(((3

5otal P12(/((( P $2/(((

,ase '(/((( MBrs. 2(/((( D>Brs

*0 rate P 2.%(:MBr. P %.1(:D>Br.

2. !tep method

P1@@@ P2@@@ !1@@@@ !2@@@

Direct cost P &(/((( P 6(/((( P 2(/((( P #2/(((Allocated cost

!1 2/((( 2/((( 2(/(((3 16/(((

!2 #(/((( 1$/((( %$/(((3

5otal P122/((( P $(/(((

,ase '(/((( MBrs. 2(/((( D>Brs

*0 rate P 2.%%:MBr P %.((:D>Br.

#. Algebraic method

P1@@@ P2@@@ !1@@@ !2@@@@

Direct cost P &(/((( P 6(/((( P 2(/((( P #2/(((

Allocated

!1 #.1%# #/1%# #1/%2&3 2'/1%#

!2 2$/'2 1/1%# 11/%2& '/1%#3

5otal P121/1' P$(/2$6

,ase '(/((( MBrs. 2(/((( D>Brs

*0 rate P 2.%#:MBr. P %.(:D>Br.

!1 -= 2(/((( 2(F !2

!2 = #2/((( $(F !1

!1 = 2(((( 2(F #2/((( $(F !13

= 2(/((( 6/%(( .16 !1

!1 - .16!1 = 26.%((

!1 = 26/%((:.$%

= #1/%2&

!2 = #2/((( $(F #1/%2&

= #2/((( 2'/1%#

= '/1%#


41/86

Problem Bigh Densit Corporation

1. Direct method

Insertion Assembl 0ccupanc Accounting Maintenance

Direct cost 6$'/((( &'/((( 1$(/((( 2%'/((( #2'/(((

Allocated ,ldg. occupanc 6#/1'$ 116/$%2 1$(/(((3

Accounting 1((/22 1%%.# 2%'/(((3

Maintenance 1#2/&'' 1&2.(%' #2'/(((3

5otal &$1/#%( 1/2%$/66(

2. !tep method

Insertion Assembl 0ccupanc Accounting Maintenance

Direct cost 6$'/((( &'/((( 1$(/((( 2%'/((( #2'/(((

Allocated cost

0ccupanc ''.2$ 1(#/(&6 1$(/(((3 11/1%6 1(/(#(

Accounting &%/%$( 1#6/%1 (2'6.1%63 2'/1%'Maintenance 1%/#6' 212/$6( #6(/1'3

5otal &$2/'# 1/2%/%2

Problem $ - Central Par7Ka Corp.

P1@@@ P2@@@@ !1@@@ !2 @@@

Direct cost 12(/((( $(/((( 2'/((( 1(/(((Allocated

!1 1#/### 6/66 26/663 6/66

!2 $/### 6/66 1/66 16/663

5otal 1%1/666 /##%

!1 = 2'/((( 1(F of !2

!2 = 1(/((( 2'F of !1

!1 = 2'/((( 1(F 1(/((( .2'!1

= 2'/((( 1/((( .(2'!1

!1 - .(2' !1 = 26/((( !1 = 26/(((:.&'

= 26/66

!2 = 1(/((( .2'26/663

= 16/66

Problem & Megastar Compan


42/86

&'/((( Mach. Brs.

5otal Per Mach.Br.

*i+ed #%/2(( (.#6 #%/2((:&'/(((3

)ariable %1/$(( (.%% %1/$((:&'/(((3

6/((( (.$(

1. Actual factor o"erhead P $/6((

>ess? Applied 1((/((( + .$(3 $(/(((

0"erapplied factor o"erhead 1/%((3

2. Actual factor o"erhead P $/6((

>ess? ,udget alloKed on actual hours

*i+ed #%/2((

)ariable 1((/((( + .%%3 %%/((( $/2((

!pending "ariance unfa"orable P %((

#. ,udged alloKed on actual hours P $/2((

>ess? Applied factor o"erhead $(/(((

Idge capacit "ariance fa"orable 1/$((3

Page '

Problem 1( - Abner Compan

2/((( units

5otal- Per unit

*i+ed P ##/$%( P (.% ##/$%(:2/(((3

)ariable #(2%(( %.2( 2/((( + %.2(3

5otal P##6/2(( P %.6

1. Actual *0 P 1'/&1(

>ess? Applied *0 '/%(( units + P %.6 2'/21$

nderapplied *0 P &.#($3

2. Actual *0 P 1'/&1(


*i+ed ##/$%(:12 months3 2/$2(

)ariable '/%(( + %.2(3 22/6$( 2'/'((

!pending "ariance fa"orable P &/'&(3

#. ,udged alloKed on actual hours P2'/'((

>ess? Applied 2'/21$

Idle capacit "ariance unfa"orable P 2$2


43/86

Problem 11 - 9orman Corporation

1. )ariable rate:hour = 2(/((( 2'2/(((

6(/((( - %$/(((

= P1.'(:D>Br.

2. Bigh >oK

5otal 2(/((( 2'2/(((

>ess? )ariable

6(/((( + 1.'(3 &(/(((

%$/((( + 1.'(3 @@@@@@@ 2/(((

*i+ed 1$(/((( 1$(/(((

2. Actual factor o"erhead 2#/(((

>ess? Applied 6(/((( + &(F3 + '.2' 2$#/'((0"erapplied *0 1(/'((3

*0 rate = 2'2/((( = '.2': D>Brs.

%$/(((

Page 6

#. Actual factor o"erhead 2#/(((


*i+ed 1$(/(((

)ariable '%/((( + 1.'(3 $1/((( 261/(((

!pending "ariance 12/(((

%. ,udget alloKed on actual hours 261/(((

>ess? Applied 2$#/'((

Idle capacit "ariance 22/'((3

Problem 12 - ,lanche Corporation

1. )ariable rate: = #'6 /2'( - #%$/'( = P#.((:D>Br.

%/'(( - %'.(((

2. &(F capacit &'F capacit

5otal #%$/'( #'6/2'(

>ess? )ariable

%'/((( + # 1#'/(((

%/'(( + # @@@@@@@ 1%2/'((

*i+ed 21#/'( 21#/'(


44/86

#. Actual factor o"erhead %%'/(((

>ess? Applied %2/'(( D>Brs + .'(3 #1$/'(

nderapplied factor o"erhead 126/2'(

Problem 1# - ,ulilit Compan

13 Product A Product ,

Direct materials '( + P12(3 P 6/(((

1(( + P12(3 P 12/(((

Direct labor 2/((( $/(((

*actor o"erhead applied 1(( + P2'3 2/'((

%(( + P2'3 @@@@@@@@ 1(/(((

5otal costs P 1(/'(( P #(/(((

Di"ide b number of units '(@@ 1((@

Cost per unit P 21(.(( P #((.((

*actor o"erhead rate = st. *actor o"erhead

st. direct labor hours

= P2((/'(: $/(#(

= P 2'.((: per direct labor hour

Page

23 Product A Product ,

Direct materials P 6/((( P 12/(((

Direct labor 2/((( $/(((

*actor o"erhead applied

Mat. Bandling 2( + P '( 3 1/(((

'( + P '(3 2/'((

!etup ' + P 2((3 1/(((

$ + P 2((3 1/6((

Design changes 2 + P 1(.'(3 21'

' + P 1(.'(3 '#.'(

9o. of parts 1( + P 1((3 1/(((

1' + P 1((3 @@@@@@@@ 1/'((

5otal costs P 11/21' P 26/1#.'(

Di"ide b number of units '(@@ 1((@@@

Cost per unit P 22%.#( P 261.#$

*actor o"erhead rate

Mat. Bandling P6(/(((:1/2(( = P '(: times handled

!etup P $(/(((: %(( = P 2((:setup

Design changes P 1(/'(: 1(( = P 1(.'(:change

9o. of parts P '(/(((: '(( = P 1((:part


45/86

Problem 1% -

A,0


46/86

5:*A>!

1. 5rue 6. *alse

2. *alse . 5rue

#. *alse $. 5rue

%. *alse &. 5rue

'. *alse 1(. 5rue

Problem 1 - "ergreen Compan

A3 1. CBA4D 50 5B

CBA4D 50


47/86

Problem # - 9orman Compan

mploee 4uaranteed

Gage

5otal pa piece rate Deficienc 5otal

Paroll

Cru; 2/((( 2%( + .'(3 1/$(( 2(( 2/(((.((

,riones 2/((( 2$6 + .'(3 2/1%' - 2/1%'.((Da"id 2/((( 2' + .'(3 2/(62.'( - 2/(62.'(

Mendo;e 2/((( 2%( + .'(3 1/$(( 2(( 2/(((.((

i"era 2/((( 22' + .'(3 1/6$.'( #12/'( 2/(((.((

5olentino 2/((( 2$' + .'(3 2/1#.'( -@@@ 2/1#.'(

505A> 12/((( 11/6#2.'( 12.'( 12/#%'.((

2. Charged to Gor7 in process - 11/6#2.'(

#. Charged to factor o"erhead account - 12/'(

Problem % - 5-9ee 5railer Compan

Deductions Kere computed on the assumption that pre"ious pament of Kages Keremade Kithout deductions and all deductions are made on the last pament for the

month.

Assume the folloKing amount as pre"ious Kages for the past # Kee7s3

Castro - '/6((

Ardina - /'((

,rioes - 6/'((

Da"id 6/2((

*aardo '/&((

5omas '/$((

)illas '/2((

4 >A PAE 0) 5IM PAE 505A>

mploee B!. A5 B!. A5 PAE

Castro %2 %(.(( 1/6$(.(( 2 2(.(( %(.(( 1/2(.((

Ardina %' '(.(( 2/2'(.(( ' 2'.(( 12'.(( 2/#'.((

,riones %$ %(.(( 1/&2(.(( $ 2(.(( 16(.(( 2/($(.((

Da"id %$ %(.(( 1/&2(.(( $ 2(.(( 16(.(( 2/($(.((

*aardo %' %(.(( 1/$((.(( ' 2(.(( 1((.(( 1/&((.((

5omas %2 %(.(( 1/6$(.(( 2 2(.(( %(.(( 1/2(.((

)illas %( %(.(( 1/6((.(( - - -@@ 1/6((.((

505A> 12/$'(.(( 62'.(( 1#/%'.((

Continuation

mploee 5otal !!! G:holding Phil. Pag- 5otal 9et


48/86


49/86


50/86

2'/((( 2%/(((

c3 nits completed 6/((( 1((F 6/(((

nits IP end 1/((( #:% '(

'(( 2:' 2((

/'(( 6/&'(

d3 nits completed 1$/((( 1((F 1$/(((

nits IP end '/((( T 2/'((

%/((( U #/(((

2/((( 2#/'((

e3 nits completed #2/((( 1((F #2/(((

nits IP end 1/'(( 1:' #((

%/((( U #/(((

#/'(( #'/#((

Problem 2 - Casper Corporation

13 nits started 11/(((

nits completed &/((( 1((F &/(((

nits in process/ end 2/((( U 1/'((

11/((( 1(/'((

23 Materials >abor 0"erhead

Cost incurred P 1'/'( P %(/&'( P 2'/2((

Nui"alent prod. 1(/'(( 1(/'(( 1(/'((

nit cost P 1.'( P #/&( P 2.%(

Problem # -

Case 1 Materials Con"ersion

!tarted '/((( GD P GD P

Completed %/((( 1((F %/((( 1((F %/(((

In process/ end 1/((( 1((F 1/((( U '(

'/((( '/((( %/'(

Case 2

ecei"ed '(/(((

Completed %%/((( 1((F %%/((( 1((F %%/(((

In process end 6/((( - V 1/'((

'(/((( %%/((( %'/'((

Case #

!tarted #'/(((

Completed 2&/((( 1((F 2&/((( 1((F 2&/(((


51/86

In process/ end #/((( 'F 2/2'( 1:# 1/(((

#/((( 1((F #/((( 1:2 1/'((

#'/((( #%/2'( #1/'((

Page 2Problem % - ,eautiful Compan

!tarted 12/(((

Completed 1(/'(( 1((F 1(/'(( 1((F 1(/'((

In process end 1/'(( '(F '( 2:' 6((

12/((( 11/2'( 11/1((

nit cost

M = 2/(((:11/2'( = 6.%( > = $$/$((:11/1(( = $ 0B = %%/%((:11/1(( = %

2. Completed L transferred 1(/'(( + 1$.%(3 1/2((

#. In process/ end

Materials '( + 6.%(3 %/$((

> L 0B 6(( + 123 /2((

12/(((

Problem ' - A,M Compan

Department 1 Department 2

Materials Con"ersion Materials Con"ersion

Actual P P Actual P P

!tarted:recei"ed 6(/((( %(/(((

Completed %(/((( %(/((( %(/((( #(/((( #(/((( #(/((&

IP/ end 2(/((( 2(/((( 1'/((( 1(/((( '/((( $/(((

6(/((( 6(/((( ''/((( %(/((( #'/((( #$/(((

Costs charged to the department

Cost from preceding dept. 2(/((( 1$.((

Cost added in the dept.

Materials %$(/((( $.(( 2%'/((( .((

>abor ##(/((( 6.(( 1&(/((( '.((

0"erhead 22(/((( %.(( 11%/((( #.((

5otal costs added 1/(#(.((( 1$.(( '%&/((( 1'.((

5otal costs 1/(#(/((( 1$.(( 1/26&/((( ##.((

5otal costs accounted for as folloKs?

C L 5 %(/((( + 1$3 2(/((( #(/((( + ##3 &&(/(((

IP end

Cost from preceding dept. 1(/((( + 1$3 1$(/(((

Materials 2(/((( + $3 16(/((( '/((( + 3 #'/(((

>abor 1'/((( + 63 &(/((( $/((( + '3 %(/(((


52/86


53/86

0"erhead '/((( + #.'3 1$/'( 1##/12'

5otal costs as accounted for 1.1((/62'.

b3 9ormal disco"ered at the end

nits completed 6(/((( 1((F 6(.((( 1((F 6(/(((

nits IP end 1(/((( 1((F 1(/((( '(F '/(((nits lost 1(/((( 1((F 1(/((( 1((F 1(/(((

$(/((( $(/((( '/(((


Cost from preceding dept. '6(/((( .((


Materials 1'/((( 2.1$'

>abor 121/$' 1.62'

0"erhead 2%#/'( #.2'@@

5otal costs added '%(/62' .(62'

5otal costs 1/1((/62' 1%.(62'

5otal costs accounted for as folloKs? Comp. L gransf. 6(/((( + 1%.(62'3 1(/((( + 1%.(62'3 &$%/#'

IP end

Cost from prec. Dept. 1(/((( + 3 (/(((

Materials 1(/((( + 2.1$'3 21/$'

>abor '/((( + 1.62'3 $/12'

0"erhead '/((( + #.2'3 16/2'( 116/2'(

5otal costs as accounted for 1/1((/62'

c3 Abormal disco"ered Khen 6(F completed

nits completed 6(/((( 1((F 6(/((( 1((F 6(/(((

nit+ IP ed 1(/((( 1((F 1(/((( '(F '/(((

nits lost 1(/((( 1((F 1(/((( 6(F 6/(((

$(.((( $(/((( 1/(((


Cost from preceding dept. '6(/((( .((


Materials 1'/((( 2.1$'

>abor 121/$' 1.16''

0"erhead 2%#/'( #.%##(&

5otal added '%(/62' .##1%

5otal costs 1/1((/62'

1%.##1%

Page %

5otal costs as accounted for

Comp. L transf. 6(/((( + 1%.##1%3 $6(/22$

*0C 1(/((( + .((3 1(/((( + 2.1$'3 6/((( + '.1%&6%3 122/#

IP/ end

Cost from prec. Dept 1(/((( + .((3 (/(((

Materials 1(/((( + 2.1$'3 21/$'


54/86

>abor 6/((( + 1.16''3 $/'$#

0"erhead 6/((( + #.%##(&3 1/166 11/62%

5otal cost as accounted for 1/1((/62'

d3 >ost abnormal disco"ered at the end

9ote - Nui"alent production and unit costs the same as lost 9ormal

disco"ered at the end. 5he difference is onl on the allocation of the cost.

Completed L transferred 6(/((( + 1%.(62'3 $%#/'(

!poiled goods 1(/((( + 12.((3 12(/(((

*0C 1(/((( 1%.(62' 12.((3 2(/62'

IP end

Cost from prec. 1(/((( + 3 (/(((

Materials 1(/((( + 2.1$'3 21.$'

>abor '/((( + 1.62'3 $/12'

0"erhead '/((( + #.2'3 16/2'( 116/2'( 5otal costs as accounted for 1/1((/62'

Problem $ - ,riones Compan

nits recei"ed 2$/(((

nits completed 16/((( 1((F 16/((( 1((F 16/(((

nits IP end 1(/((( - 6(F 6/(((

nits lost normal $(( - 1((F $((

nits lost abnormal 1/2(( @@@@@@ 1((F 1/2((

2$/((( 16/((( 2%/(((

Cost charged to the department

Cost from preceding department 2$(/((( 1(.((

Cost added in the department

Materials 2%/((( 1.'(

Con"ersion 1$(/((( .'(

5otal added 2(%/((( &.((

5otal costs to be accounted for %$%/((( 1&.((

Costs accounted for as folloKs?

Completed L transf. 16/((( + 1&3 $(( + 1.'(3 #1$/(((

*0C 1/2(( + 1.'(3 21/(((

IP end

Cost from preceding dept. 1(/((( + 1(3 1((/(((

Materials -

Con"ersion 6/((( + .'(3 %'/((( 1%'/(((

5otal costs as accounted for %$%/(((

Problem & - D!A Corporation


55/86

!tarted:recei"ed 6(/((( #6/(((

Increase in units @@@@@@ &/(((

6(/((( %'/(((

Completed #6/((( #6/((( #6/((( #&/((( #&/((( #&/(((

IP/ end &/((( &/((( #/((( 6/((( 6/((( 2/%((>ost 1'/((( @@@@@ @@@@@ @@@@@@ @@@@@ @@@@@

6(/((( %'/((( #&/((( %'/((( %'/((( %1/%((

Page '

Cost charged to the department

Cost from prec. Dept. 2#(/%(( '.12


Materials 1$(/((( %.(( 1#'/((( #.((

>abor $/((( 2.(( $2/$(( 2.((

0"erhead 1'/6(( (.%( %1/%(( 1.((

5otal added 2#/6(( 6.%( 2'&/2(( 6.((5otal costs 2#/6(( 6.%( %$&/6(( 11.12


Completed #6/((( + 6.%(3 2#(/%(( #(/((( + 11.123 %##/6$(

IP end

Cost from prec. Dept. 6/((( + '.123 #(/2(

Mat. &/((( + %3 #6/((( 6/((( + #.((3 1$/(((

>abor #/((( + 23 6/((( 2/%(( + 2.((3 %/$((

0B #/((( + (.%(3 1/2(( %#/2(( 2/%(( + 1.((3 2/%(( ''/&2(

2#/6(( %$&/6((

Problem 1(

ecei"ed '/(((

Completed #/$(( 1((F #/$(( 1((F #/$((

IP end $(( %(F #2( 2( 16(

>ost %(( 1((F %(( 1((F %((

'/((( %/'2( %/#6(

Costs charged to the dept.

Cost from prec. Dept 6(/((( 12.((


Materials 22.6(( '.((

>abor 1/%%( %.((

0"erhead 1#/($( #.((

5otal added '#/12( 12.((

5otal costs as accounted for 11#/12( 2%/((

Costs accounted for as folloKs

Completed #.$(( + 2%3 &1/2((

!poiled goods %(( + 1'3 6/(((

*0C %(( + 2% 1'3 #/6((

IP end

Cost from prec. Dept. $(( + 123 &/6((


56/86

Mat. #2( + '3 1/6((

>abor 16( + %3 6%(

0"erhead 16( + #3 %$( 12/#2(

5otal costs as accounted for 11#/12(

Problem 11 - Diamond Compan

nits recei"ed ''/(((Increase in units '/(((

6(/(((

nits completed %$/((( 1((F %$/((( 1((F %$/(((

nits IP end 12/((( 1((F 12/((( (F $/%((

6(/((( 6(/((( '6/%((


Cost from prec. Dept. 2%/'( (.%12'


Materials /2(( (.12

Con"ersion cost '#/'$( (/&'

5otal added 6(/$( 1.( 5otal costs $'/'#( 1.%$2'

5otal costs accounted for as folloKs?

Completed %$/((( + 1.%$2'3 1/16(

IP end

Cost from prec. Dept. 12/((( +(.%12'3 %/&'(

Materials 12/((( + (.123 1/%%(

Con"ersion cost $/%(( + (.&'3 /&$( 1%/#(

$'/'#(

Page 6

Multiple choice

1. C 11. D 21. D

2. C 12. D 22. ,

#. , 1#. , 2#. , cost should

%. %$/'(( 1%. 11/((( be 2/6(/((

'. C 1'. D 2%. C

6. , 16. D 2'. D

. C 1. A 26. A

$. C 1$. D 2. ,

&. , 1&. C 2$. D

1(. D 2(. ,

CBAP5 1( - A)A4 A9D *I*0 C0!5I94

5 0 *A>! M>5IP> CB0IC - 5B0E

1. 5 1. , 11. C

2. 5 2. A 12. C

#. 5 #. A 1#. C


57/86

%. *A>! %. , 1%. C

'. 5 '. A 1'. D

6. 5 6. C

. *A>! . A

$. 5 $. A

&. 5 &. D1(. 5 1(. A

Problem 1

13 *I*0

nits in process/ beg. 6/(((

nits started %2/(((

%$/(((

nits completed L transferred %(/(((3

IP beg. 6/((( $(F %/$(( (F %/2((

!tarted L completed #%/((( 1((F #%/((( 1((F #%/(((

nits in process/ end $/((( 1(F $(( 1'F 1/2((%$/((( #&/6(( #&/%((

23 A)A4

nits in process/ beg. 6/(((

nits started %2/(((

%$/(((

nits completed %(/((( 1((F %(/((( 1((F %(/(((

nits IP end $/((( 1(F $(( 1'F 1/2((

%$/((( %(/$(( %1/2((

Problem 2

13 *I*0

nits in process/ beg. '/(((

nits started #'/(((

%(/(((

nits completed L transferred #(/(((3

IP beg. 6/((( $'F '/1(( 'F %/'((

!tarted L completed 2%/((( 1((F 2%/((( 1((F 2%/(((

nits in process/ end 1(/((( 2(F 2/((( #(F #/(((

%(/((( #1/1(( #1/'((

PA4 2

23 A)A4

nits in process/ beg. '/(((

nits started #'/(((

%(/(((


58/86

nits completed #(/((( 1((F #(/((( 1((F #(/(((

nits IP end 1(/((( 2(F 2/((( #(F #/(((

%$/((( #2/((( ##/(((

Problem #13

nits in process beg. #((

nits started 2/(((

2.#((

nits comp. L transf. 1/((3

IP beg. #(( %(F 12( (F 21(

!tarted L completed 1/%(( 1((F 1/%(( 1((F 1/%((

nits in process/ end 6(( %(F 2%( 2(F 12(

2/#(( 1/6( 1/#(

23

'%(nit cost - Materials #/1%:16( = 2.11(22

Con"ersion 2/2'$:1#( = 1.#('2(2

6/'12 #.%1'%2&

#3 Cost of units transferred out

*rom IP beg.

Cost last month '%(

Cost added Mat. 12( + 2.11(223 2'#

Con"ersion 21( + 1.#('2(23 2% 1/(6

*rom units started L completed 1/%(( + #.%1'%2&3 %/$2

'/$%&

%3 Cost of ending in"entor

Materials 2%( + 2.11(223 '(

Con"ersion 12( + 1.#('2(23 1'6

66#

Problem % -

13 *I*0

nits in process/ beg $/(((

nits started 1%/(((

22/(((

nits Completed 1/(((3

IP beg. $/((( (F '/6(( (F '/6((

!tarted L completed &/((( 1((F &/((( 1((F &/(((

nits in process/ end '/((( $(F %/((( %(F 2/(((

22/((( 1$/6(( 16/6((

Page #


59/86

%$/2%(

nit cost Materials 126/$'2:1$/((( = 6.$2

Con"ersion 21&/12(:16/6(( = 1#.2(

#&%/212 2(.(2

Completed L transf.IP beg.

Cost labor month %$/2%(

Cost added '/6(( + 2(.(23 112/112 16(/#'2

!tarted L completed &/((( + 2(.(23 1$(/1$( #%(/'#2

IP end

Materials %/((( + 6.$23 2/2$(

Con"ersion 2/((( + 1#.2(3 26/%(( '#/6$(

#&%/212

23 A)A4

nits completed 1/((( 1((F 1/((( 1((F 1/(((nits IP end '/((( $(F %/((( %(F 2/(((

22/((( 21/((( 1&/(((

nit cost Materials 16/%%( 126/$'2 = 6.$2#%2$

21/(((

Con"ersion = #1$(( 21&/12( = 1#.2(6#16

1&/((( 2(.(2&%%

Completed L transferred 1/((( + 2(.(2&%%3 #%(/'(6

IP end

Materials %/((( + 6.$2#%2$3 2/2&%

Con"ersion 2((( + 1#.2(6#163 26/%12 '#/(6

#&%/212

Problem ' Auto 9o"elties/ Inc.

a. A"erage

13 nits in process beg. 1'/(((

nits started 2'(/(((

26'/(((

nits completed L transf. 2%'/((( 1((F 2%'/((( 1((F 2%'/(((

nits in process end 2(/((( 1((F 2(/((( %(F $/(((

26'/((( 26'/((( 2'#/(((

23 nit cost Materials 21(/((( #/'((/((( = 1%.((

26'/(((

Con"erion 6(/((( 1/%'$/((( = 6.((

2'#/((( 2(/((


60/86

Page %

#3 Completed L transf. 2%'((( + 2(3 %/&((/(((

%3 IP ined

Materials 2(/((( + 1%3 2$(/(((

Con"ersion $((( + 63 %$/((( #2$/(((

'/22$/(((

b3 *I*0

13 nits completed 2%'/(((3

IP beg 1'/((( - 1:# '/(((

!tarted L completed 2#(/((( 1((F 2#(/((( 1((F

2#(/(((

nits IP beg. 2(/((( 1((F 2(/((( %(F$/(((

26'/((( 2'(/((( 2%#/(((

23nit cost? Materials #/'((/(((:2'(/((( = 1%.((

Con"ersion 1/%'$(((:2%#/((( = 6.((

2(.((

#3 CompletedL transferred

*rom IP beg.

Cost last month 2(/(((

Cost added '/((( + 63 #(/((( #((/(((

*rom started L completed 2#(/((( + 2(3 %/6((/((( %/&((/(((

%3 IP end

Materials 2(/((( + 1%3 2$(/(((

Con"ersion $/((( + 63 %$/(((

#2$/(((

'/22$/(((

Problem 6 - ller Compan

A3 A)A4

13 nits IP beg. 1'/'((

nits started #6/(((

'1/'((

nits completed %$/((( 1((F %$/((( 1((F %$/(((

nits IP ed #/'(( 1((F #/'(( %'F 1/''

'1/'(( '1/'(( %&/''

23 nit cost Materials /$(( '%/((( = 1.2(

'1/'((


61/86

Con"ersion 2(/1'( &/(((= 2.((

%&/'' #/2(

#3 Completed L transferred %$/((( + #.2(3 1'#/6((

%3 IP end Materials #/'(( + 1.2(3 %/2((

Con"ersion 1/''3 + 2.((3 #/1'( /#'(

16(/&'(

Page '

,3 *I*0

13 nits IP beg 1'/'((

nits started #6/(((

'1/'(( nits completed %$/(((3

IP beg. 1'/'(( - #'F '/%2'

!tarted L completed #2/'(( 1((F #2/'(( 1((F #2/'((

nits IP end #/'(( 1((F #/'(( %'F 1/''

'1/'(( #6/((( #&/'((

23 nit cost IP beg. 2/&'(

Materials '%/(((:#6((( = 1.'(

Con"ersion &/(((:#&/'(( = 2.((

16(/&'( #.'(

#3 Completed L transferred

IP beg.

Cost last month 2/&'(

Cost added '/%2' + 23 1(/$'(

!tarted L completed #2/'(( + #.'(3 11#/'( 1'2/''(

%3 IP end

Materials #/'(( + 1.'(3 '/2'(

Con"ersion 1/'' + 23 #/1'( $/%((

16(/&'(

Problem - 4D> Compan

A3 A)A4

nits IP beg 1(/(((

nits recei"ed %(/(((

'(/(((

nits completed #'/((( 1((F #'/((( 1((F #'/(((


62/86


63/86

0"erhead 1#(/(((:#2/'(( = %.((

6%#/'(( 1'.((

Completed L transferred W#'(((3

IP beg

Cost last month 1%1/(((

Cost added 2.'(( + &3 22/'((ecei"ed L completed 2'/((( + 1'3 #'/(((

'#$/'((

IP end

Cost from preceding dept. 1(/((( + %3 %(/(((

Materials 1(/((( + 23 2(/(((

>abor '/((( + '3 2'/(((

0"erhead '/((( + %3 2(/(((

1('/(((

Page $ - abor $/((( 1.((

0"erhead 6/((( .' .

1$/((( 2/2'

5otal costs to be accounted from 6%/2'( 6.2'


Cost of units completed L transf.


64/86

IP beg. 1(/2'(

Cost added 1/((( + 2.2'3 2/2'( 12/'((

Cost L transf. 6/((( + 6.2'3 #/'(( '(/(((

IP end

Cost from preceding #/((( + %.((3 12/(((M/ >/ 0 1/((( + 2.2'3 2/2'( 1%/2'(

5otal costs as accounted for 6%/2'(

Problme & 9orman Corporation

A)A4 M5B0D

nits IP beg. 1/(((

nits started &/(((

1(/(((

nits completed L transferred $/((( 1((F $/((( 1((F $/((( 1((F $/(((

nits IP end 1/'(( 1((F 1/'(( 'F 1/12' '(F

'(

nits lost abnormal '(( 1((F '(( 1((F '((

1((F '((

1(/((( 1(/((( &/62'

&/2'(

Cost to be accounted for

Cost IP beg Cost added nit cost

Materials 2/'2( 2/%$( .'(

>abor 1/'%( 21/'6( 2.%(

0"erhead 2/$(( %#/%'( '.((

6/$6( 1#/%&( 1%.&(

Page #

Cost accounted for as folloKing

Completed L transferred $/((( + 1%.&(3 11&/2((

*actor 0"erhead '(( + 1%.&(3 /%'(

In process/ end

Materials 1/'(( + .'(3 11/2'(

>abor 1/12' + 2.%(3 2/((

0"erhead '( + '.((3 #/'( 1/((

5otal costs as accounted for 1%%/#'(

Problem & - 9orman Corporation

*I*0 M5B0D

nits completed L transferred

IP beg. 1/((( %(F %(( 6'F 6'( 'F '(


65/86

!tarted L completed /((( 1((F /((( 1((F /((( 1((F

/(((

nits IP end 1/'(( 1((F 1/'(( 'F 1/12' '(F

'(

nits lost abnormal '(( 1((F '(( 1((F '((

1((F '(( 1(/((( &/%(( &/2'

&/(((

Cost to be accounted for

Cost IP beg. 6/$6(

Cost added

Materials 2/%$( .1(6#$

>abor 21/'6( 2.#2%'2$

0"erhead %#/%'( %.$2$

1#/%&( 1%/$62&%%

5otal costs to be accounted 1%%/#'( 1%/$62&%%Costs accounted for as folloKs?

Completed L transferred

IP beg.

Cost last month 6/$6(

Cost added

M %(( + .1(6#$3 #/($%

> 6'( + 2.#2%'2$3 1/'11

0 '( + %.$2$3 #/621

!tarted L comp./((( + 1%.$62&%%3 1(%/(%1@@@ 11&/11

*actor o"erhead control '(( + 1%.$62&%%3 /%#2

In Process/ end

Materua7s 1/'(( + .1(6#$3 11/'66

>abor 1/12' + 2.#2%'2$3 2/61'

0"erhead '( + %.$2$3 #/62( 1/$(1

1%%/#'(

Problem 1( -

13 nits IP beg '/(((

nits recei"ed 2(/(((

2'/(((

nits completed 21/((( 1((F 21/((( 1((F 21/(((

nits IP end %/((( @@@@@@ #(F 1/2((


66/86


67/86

#3 Completed %/'(( +#1.1(3

1#&/&'(

%3 IP end

Cost from precede dept. %(( + 1.((3 6/$((

Material A %.(( + '.6(3 2/2%(

Con"ersion 12( + %.'(3 '%( &/'$(

Page 1(

Problem 12

nits started 1(/'((

nits completed /((( 1((F /((( 1((F /((

nits IP end #/(((

,uts 7ist - ,oral '((

1(/'((

Problem 1# - Alon;o Manufacturing

Materials Con"ersion 5otal

Cost IP beg. P 6/'%% P 16/$(# P 2#/#%

Current cost 2$1/6'6 #%%/$1 626/%#

5otal costs P2$$/2(( P #61/62( P6%&/$2(

Di"ided b eNui"alent prod. 262/((( 2'$/#((

nit cost P 1.1( P 1/%( P 2.'(

1. Completed L transferred 2''/2(( + 2.'(3 P 6#$/(((

2. 5otal costs to be accounted for P 6%&/$2(

>ess? Cost of units IP end 11/'&

Costs of units completed P 6#$/22#

Problem 1% - 9icole Mfg. Co.

13 nits IP beg. 12/(((

nits recei"ed $(/(((

Increase in units %/(((

&6/(((

nits completed $6/((( 1((F $6/((( 1((F $6/(((

nits IP end 1(/((( 1((F 1(/((( 2:' %/(((

(6/((( &6/((( &(/(((

5ransf. In Materials >abor 0"erhead 5otal

Costs IP beg. P 11/$(( P #/12' P 1/%&( P 1/#2( P

1/#'


68/86

Current cost $6/12( 21/$#' %#/'1( #%/6$(

1$6/1%'

5otal costs P &/&2( P 2%/&6( P%'/((( P #6/(((

P2(#/$$(

Di"ided b P &6/((( &6/((( &(/((( &(/(((

nit cost P 1.(2 P (.26 P (.'( P (.%( P2.1$

23 Completed L transferred $6/((( + 2.1$3 P

1$/%$(

#3 IP end

Cost from prec. Dept 1(/((( + 1.(23 P

1(/2((

Materials 1(/((( + (.263 2/6((

>abor %/((( + (.'(3

2/((( 0"erhead %/(( + (.%(3 1/6((

P

16/%((

Problem 1' -

13 nits recei"ed. 6(/(((

nits completed '(/((( 1((F '(/((( 1((F '(/(((

nits IP beg. &/((( 1((F &/((( '(F %/'((

nits lost abnormal 1/((( @@@@@@ @@@@@@

6(/((( '&/((( '%/'((

Cost from prec. Dept. 212/%(( #.'%

Materials $%/#( 1.%#

Co"ersion 12&/1( 2.#$

%26/%$( .#'

23 *actor 0B 1/((( + #.'%3 P

#/'%(

#3 Completed L transf. '(/((( + .#'3

#6/'((

%3 IP end

Cost from prec. Dept &/((( + #.'%3

#1/$6(

Materials &/((( + 1.%#3 12/$(

Con"ersion %/'(( + 2.#$3 1(/1(

''.%%(


69/86


70/86

#3 IP end

Cost from prec dept. #/'(( + '3

1/'((

Materials #/'(( + 13 #/'((

Con"ersion 1/%(( + #3 %/2((

26/2((

Problem 1$ - !amahan Inc.

13 nits IP end '(( + '(F + 1.#23 P ##/(((

23 *inished goods/ end (( + 1#23 P &2/%((

#3 *rom *4 beg. 6(( uitt; P 6/$((

*rom units completed IP beg. 1/2'( X 161/(((

*rom units recei"ed and completed $(( X1('6((

Cost of goods sold 2/6'( P #%#/%((

0r

5otal a"ailable for sale

*4 beg. 6(( units P 6/$((

Completed from IP beg. 1/2'( 161/(((

Completed from started 1/'(( + 1#2 1&$/(((

5otal goods a"ailable for sale

%#'/$((

>ess? *4 In"entor &2/%((

Cost of goods sold P #%#/%((

Computation of eNui"alent production

nits IP beg. 1/2'(

nits started 2/(((

#/2'(

nits completed 2/'(3

IP beg. 1/2'( 2(F 2'(

!tarted L completed 1/'(( 1((F 1/'((

nits IP end '(( '(F 2'(

#/2'( 2/(((

nit cost 26%(((:2((( = 1#2.((

Completed L transferred

IP beg.

Cost last month P

12$/(((


71/86

Cost added 2'( + 1#23 ##.(((

Cost of IP beg. upon completion P

161/(((

nits started L completed 1/'(( + 1#23 P

1&$/(((

Problem 1& - Michelle Compan

Department 1 Department 2

Actual Materials Con"ersion Actual Materials

Con"ersion

!tarted or recei"ed 6(/((( %'/(((

Comp. L transf. %'/((( %'/((( %'/((( %(/((( %(/(((

%(/(((

IP end 1'/((( 1'/((( &/((( '/((( '/((( %/(((

6(/((( 6(/((( '%/((( %'/((( %'/(((%%/(((

Costs charged to the dept.

Cost from preceding dept. 11/((( #.$(


Materials &(/((( 1/'( 112/'(( 2.'(

>abor 6%/$(( 1.2( 61/6(( 1.%(

0"erhead '&%(( 1.1( '(/6(( 1.1'

5otal added 21%/2(( #.$( 22%/(( '.('

5otal costs 21%/2(( #.$( #&'/(( $.$'

Costs accounted for as folloKs

Comp. L transf. %'/((( + #.$(3 11/((( %(/((( + $.$'3

#'%/(((

IP beg

Cost from prec dept '/((( + #.$(3 1&/(((

Mat. 1'/((( + 1.'(3 22/'(( '/((( + 2.'(3 12/'((

>abor &/((( + 1.2(3 1(/$(( %/((( + 1.%(3 '/6((

0B &/((( + 1.1(3 &/&(( %#/2(( %/((( + 1.1'3 %/6((

%1/((

5otal costs as accounted for 21%/2((

#&'/((


72/86

#. Paroll 12'/6((

Accrued paroll 12'/6((

%. Gor7 in process Dept. 1 6%/$((

Gor7 in process Dept. 2 61/6((*actor 0B 2/2((

Paroll 12$/6((

'. Gor7 in process Dept. 1 '&/%((

Gor7 in process Dept. 2 '(/6((

*actor 0B Applied 11(/(((

6. Gor7 in process Dept. 2 11/(((

Gor7 in process Dept. 1 11/(((

. *inished goods #'%/(((Gor7 in process Dept. 2 #'%/(((

$. Accounts recei"able 6((/(((

!ales 6(((((

Cost of goods sold 2'2/(((

*inished goods 2'2/(((

'/((( 2(/((( + $.$'3

Michelle Compan

Cost of 4oods sold !tatement

*or the month of


73/86

>ess? *inished goods/


74/86

Product nits Produced G* 5otal G* Cost:G* !hare in


75/86

%'(/((( 1#(/(((

'$(/(((

Problem % >aguna Chemical Compan

13

a3 - e"enue from b-product shoKn as additional sales !ales

Main product 1$(/(((

,-product 1/(((

1$1/(((

>ess? Cost of goods sold

Materials #(/(((

>abor 1/%((

0"erhead 1/%((

Cost of goods manufactured 6%/$((

>ess? In"entor/ end 6/%$(

'$/#2( 4ross profit

122/6$(

>ess? !elling and administrati"e e+penses

'%/(((

9et Income 6$/6$(

b3 e"enue from b-product shoKn as deduction from cost of goods sold of

MP

!ales



Materials #(/(((

>abor 1/%((

0"erhead 1/%((



Cost of goods sold '$/#2(

>ess? e"enue from b-product 1/((( '/#2(

4ross profit 122/6$(

>ess? !elling and administrati"e e+penses

'%/(((

9et Income 6$/6$(

Page #


76/86

c3 e"enue from b-product shoKn as other income

!ales



Materials #(/(((

>abor 1/%((0"erhead 1/%((



Cost of goods sold '$/#2(

4ross profit 121/6$(

>ess? !elling and administrati"e e+penses '%/(((

9et operating icome 6/6$(

0ther income e"enue from b-product 1/(((

9et Income 6$/6$(

2. e"enue from b-product shoKn as deduction from production cost of mainproduct

!ales



Materials #(/(((

>abor 1/%((

0"erhead 1/%((

5otal mfg. cost:cofg manufactured 6%/$((

>ess? e". from b-product 1/(((

9et manufacturing cost 6#/$((

>ess? In"entor/ end 6/#$(

Cost of goods sold '/%2(

4ross profit 122/'$(

>ess? !elling and administrati"e e+penses '%/(((

9et income 6$/'$(

Problem ' *isher Compan

1/ ,-product A ,-product ,

!ales "alue P 6/((( P #/'((

Mfg. cost after separation 1/1((3 &((3

Mar7eting L adm. +p. '(3 '((3

Desired profit &((3 %2(3

!hare in the oint cost #/2'( 1/6$(

5otal manufacturing cost before separation or oint cost #/'((

!hare of b-product A #/2'(3

!hare of b-product , 1/6$(3


77/86

!hare of main product in the mfg. cost before separation #2/'(

Page %2. Main Product ,-product A

,product ,

!ales '/((( 6/((( #/'((


!hare in oint cost #2/'( #/2'( 1/6$(

Cost after separation 11/'(( %%/2'( 1/1(( %/#'( &((

2/'$(

4ross profit #(/'( 1/6'( &2(

>ess? Mar7eting L Adm. +p. 6/((( '(

'((

9et Income 2%/'( &((%2(

Problem 6 - ternit Compan

1. !ales "alue Q 12/(((

*urther processing cost %.(((3

Mar7eting L adm. +p. 2/(((3

Desired profit 2/(((3

!hare of Q in the oint cost %/(((

Bpothetical M)

2. Product nits Per nit 5otal BM) Percentage

!hare in


78/86

4ross profit &/6(( '/%%(

1'.(%(

>ess? !elling L Adm. +p. #/'(( 1/((

'/2((

9et income 6/1 (( #/%(

&/$%(

2. !chedule allocating the oint cost to XastY and XGestY

Bpothetical M)

Products nits Produced Per nit 5otal Percentage

!hare in


79/86

C 12/2(( - 12/2((

#&2.2((

Multiple choice 5heor

1. C 6. D 11. C2. D . , 12. C

#. A $. C 1#. A

%. D &. A 1%. A

'. , 1(. C 1'. ,

Multiple choice Problems

1. ,. 11. A 21. D

2. D 12. , 22. A

#. C 1#. C 2#. C

%. D 1%. , 2%. C

'. DCA! &(/((( 1'. C 2'. C6. , 16. D 26. D

. C 1. D 2. C

$. A 1$. D

&. C. 1&. A

1(. ,. 2(. ,

CBAP5 12 - !5A9DAD C0!5I94

Problem 1

1. Actual price P 2.'2 2:. Actual Nt. used %.%'(

!td. price 2.'(3 !td. Nt. %/('(3

Difference (.(2 Difference %((

8 Act. t. %/%'( + !td. price + 2.'(

MP) $&.(( M) 1.(((

# Actual rate P #.(( %. Actual hours #/1'(

!td. rate #.1(3 !td. hours #/(((3

Difference (.1(3 Difference 1'(

8 Actual Brs. #/1'( + !td. rate #.1(

>abor rate "ar. #1'3 * >) %6'

Problem 2

1. Actual price &/'%(:#/6((3 2.6' 2. Actual Nt. used #/2((

!td. price 2.'3 !td. Nt 1/'(( +23#/(((3

Difference (.1(3 Difference 2((

8 Actual Nuantit #/6(( + !td. price 2.'

MP) #6(3 * M) ''(


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2. Actual rate '1((:#%(3 1'.(( %. Actual hrs. #%(

!td. rate 1'.(( !td. hrs. 1/'(( + .23 #((3

Difference ( Difference %(

8 !td. rate 1'.((

>) 6((

'. Actual hrs. #%( !td. hrs. #((3

Difference %(

8 )ariable rate .((

)ariable efficienc 2$(

Problem #

'/((( D>Brs.

5otal Per D>Br !td. hrs.:unit = '/((( D>Brs..

*i+ed '/((( 1.(( %/((( units

)ariable /'(( 1.'(

5otal 12/'(( 2.'( = 1.2' Brs.:unit

Materials

1. Actual price P 1.(2 2. Actual Nt. /2((

!td. price 1/((3 !td.#/'(( + 23 /(((

Difference .(2 Difference 2((

8 actual Nt. /2(( + !td. price 1.((

MP) 1%% M) 2((

>abor

1. Actual rate ##/'(:%/'((3 /'( 2: Actual hrs. %/'((

!td. rate $.((3 !td. hrs. #/'(( + 1.2'3 %/#'

Difference (.'(3 Difference 12'

8 actual hrs. %/'(( + !td. rate $.((

>) 2/2'(3 * >) 1.(((

*actor o"erhead

1. Actual o"erhead 11.2'(.((

>ess? ,udget alloKed on std. hrs.

*i+ed '/(((

)ariable %/#' + 1.'(3 6/'62.'( 11/'62.'(

Controllable "ariance #12.'(3

2. ,udget alloKed on std hrs. 11/'62.'(

>ess? 0B applied to production

%/#/' + 2.'(3 1(/.'(

)olume "ariance 62'.((

Problem %

1''/((( D>Brs.

5otal Per D>Br

*i+ed 62(/((( %.(( % + 1''/(((3 !td. hrs.:unit = 1(.((:%


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)ariable %6'/((( #.(( %6'/(((:1''/(((3 = 2.' Brs.

5otal 1/($'/((( .((

1. Actual "ariable o"erhead %'/(((

>ess? AB + )ariable rate 1%$/((( + #3 %%%/(((

)ariable spending "ariance #1/(((

AB + )ariable rate %%%/(((

>ess? !td. hrs. + ) rate 6(/((( + 2.' + #3 %'(/(((

)ariable efficienc "ariance 6/(((3 *

2. Actual fi+ed o"erhead 6#2/'((

>ess? *i+ed o"erhead at normal capacit 62(/(((

*i+ed spending "ariance 12/'((

*i+ed o"erhead at normal capacit 62(/(((

>ess? !td. hrs. + fi+ed rate 1'(/((( + %3 6((/((( *i+ed "olume "ariance 2(/(((

#. Actual factor o"erhead %'/((( 6#2/'((3 1/1(/'((


*i+ed 62(/(((

)ariable 1'(/((( + #3 %'(/((( 1/((/(((

Controllable "ariance #/'((

,udget alloKed on std. hrs 1/((/(((

>ess? !td. hrs. + 0B rate 1'(/((( + 3 1/('(/(((

)olume "ariance 2(/(((

%. Actual factor o"erhead 1/1(/'((

>ess? ,udget alloKed on actual hrs.

*i+ed 62(/(((

)ariable 1%$/((( + #3 %%%/((( 1/(6%/(((

!pending "ariance %#/'((

,udget alloKed on actual hrs. 1/(6%/(((

>ess? ,udget alloKed on std. hrs. 1/((/(((

fficienc "ariance 6/(((3 *

,udget alloKed on std. hrs. 1/((/((( >ess? !td. hrs. + *0 rate 1'(/((( + 3 1/('(/(((

)olume "ariance 2(/(((

'. !pending "ariance %#/'((

)ariable efficienc "ariance 6/(((3 *


82/86


83/86

,udget alloKed on std. hrs. 2$(/(((

>ess? 0"erhead applied %(/((( + 3 2$(/(((

)olume "ariance -

Problem 6Materials

Actual price 1.(' Actual Nt. used 6(/'((

>ess? !td. price 1.(( >ess? !td. Nt. '/((( + 123 6(/(((

Difference (.(' Difference '((

8 Actual Nt. 6#/'2':1.('3 6(/'(( + !td. price 1.((

Mat. Price "ariance #/(2' Mat. t. "ariance '((

>abor

Actual rate &.1' Actual hours 1(/'((

>ess? !td. price &.(( >ess? !td. hrs. '/((( + 23 1(/(((

Difference (.1' Difference '(( 8 Actual hrs.&6/(':&.1'3 1(.'(( + !td. rate &.((

>abor rate "ariance 1/'' >abor efficienc %/'((

1%%/((( D>Brs.

5otal Per Bour

*i+ed 2$$/((( 2.((

)ariable #6(/((( 2.'(

5otal 6%$/((( %.'(

*actor o"erhead

Actual factor o"erhead 2/((( 2%/'((3 '1/'((


*i+ed 2$$/(((:123 2%/(((

)ariable 1(/((( + 2.'(3 2'/((( %&/(((

Controllable "ariance 2/'((

, udget alloKed on std. hours %&/(((

>ess? !td. hrs. + std. rate 1(/((( + %.'(3 %'/(((

)olume "ariance %/(((

1. Materials 6(/'(( + 1.((3 6(/'((

Material price "ariance #/(2'

Accounts paable 6#/'2'

2. Gor7 in process '/((( + 12 + 13 6(/(((

Material Nuantit "ariance '((


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Materials 6(/'((

#. Paroll &6/('

Accrued paroll &6/('

%. Gor7 in process '/((( + 2 + &.((3 &(/(((>abor rate "ariance 1/''

>abor efficienc "ariance %/'((

Paroll &6/('

'. *actor 0"erhead Control '1/'((

Misc/ Accounts '1/'((

6. Gor7 in process %'/(((

*actor o"erhead applied %'/(((

. *actor o"erhead applied %'/(((*actor o"erhead - Controllable "ariance 2/'((

*actor o"erhead - )olume "ariance %/(((

*actor o"erhead control '1/'((

$. *inished goods '/((( + #&3 1&'/(((

Gor7 in process 1&'/(((

&. Accounts recei"able %/'(( + 1((3 %'(/(((

!ales %'(/(((

1(. Cost of 4oods sold %/'(( + #&3 1'/'((

*inished goods 1'/'((

11. Cost of goods sold 16/1((

Material price "ariance #/(2'

Material Nuantit "ariance '((

>abor rate "ariance 1/''

>abor efficienc "ariance %/'((

*actor o"erhead controllable "ariance 2/'((

*actor o"erhead "olume "ariance %/(((

Problem

1. Actual hours 1(1/(((

>ess? !td. hrs. 1(1/#((

Difference #((3

8 )ariable rate #@

)ariable efficienc &((3

2. Actual "ariable o"erhead #(#/'(


85/86

>ess? )ariable spending "ariance '(

Actual hrs. + "ariable rate #(#/(((

Di"ide b "ariable rate #.((

Actual hrs. 1(1/(((

#. *i+ed o"erhead at normal capacit 2&'/((( >es? 0"erhead applied to production #&$/$#'@

*i+ed "olume "ariance #/$#'3

Actual fi+ed o"erhead 2&&/&'(

>ess? *i+ed spending %/&'(

*i+ed o"erhead at normal capacit 2&'/(((

Problem $

Actual hours 11/12(

>ess? !tandard hours 1(/(((

Difference 1/12(8 !tandard rate #.'

>abor efficienc "ariance %.2((

Multiple choice

1. C

2. A

#. C

%. C

'. ,

6. D

. ,

$. C

&. ,

1(. 12/((( nf

11. ,

12. ,

1#. D

1%. C

1'. C

16. C

1. D

1$. C

1&. D

2(. D

21. ,


86/86

22. A

2#. D

2%. D

2'. ,

26. D

2. %(( CDI52$. D

2&. D

#(. 905 904B I9*0MA5I09

cost accounting by deleon

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