Reference no: EM132802450
Questions -
Q1. Company C provided the following information for July 1, 2015:
Estimated manufacturing overhead P562,500
Actual manufacturing overhead 540,000
Estimated direct labor cost 450,000
Actual direct labor cost 470,000
Total work in progress account (debit) 1,680,000
Total work in progress account (credit) 1,000,000
The company uses normal cost system and manufacturing overhead are being applied to jobs on the basis of direct labor cost. A mark up of 50% is also added to the cost of production at the time of sale of finished goods. On July 31st, Job 99 remained in production with direct materials and direct labor charges of P 15,000 and P 35,000, respectively.
Required -
a. Calculate predetermined overhead rate.
b. Determine under/ overhead applied rate amount.
c. Calculate direct materials used in production.
d. Compute ending work in process inventory.
e. Journal entry to record sales assuming all credit sale.
Q2. Company D makes customized products including drinks and had three (3) drinks production orders at the end of June 2015: Orange Drink, Cola Drink, and Soda Water. Material costs for Orange Drink and Soda Water were P 400 and P 200. Direct labor costs per batch were P 150 an P 350 for Orange Drink and Cola Drink, respectively and P 550 in total. Overhead is applied at the rate of 40% of direct materials costs. Total costs for the Cola Drink batch were P 950.
Required: Calculate the balance of work in process at the end of June 2015.
Q3. Company E uses a job order cost system. Factory overhead is applied to jobs using a predetermined rate based on direct labor hours. At the beginning of the year, the estimated factory overhead and direct labor hours were P 480,000 and 12,000 hours respectively. During the year, Company E incurred total actual factory overhead of P 475,000 and 11,500 direct labor hours. Among the job orders received during the year, Job # 902 comprising of 100 units of finished products was completed with total material cost of P 5,000 and direct labor cost of P 12,300 at P 41 per hour.
Required:
a. Complete the predetermined overhead rate
b. Calculate the total amount of overhead charged to all jobs during this year.
c. Calculate the amount of under or overapplied overhead of the year.
d. Calculate the unit cost of job # 902.
Q4. The following information were obtained from the books and records of Bridgeport Corporation.
Beginning inventories:
Raw materials P 8,000
Work in process 3,200
Finished goods 6,000
Ending inventories:
Raw materials ?
Work in process 7,200
Finished goods 2,100
Sales 107,500
Purchase of materials 15,800
Cost of direct materials used excluding rework 14,000
Cost of indirect materials used 3,800
Direct labor cost incurred excluding rework (350 hours) 24,600
Indirect labor cost incurred 4,600
Sales salaries and other expenses 12,000
Administrative salaries and expense 4,000
Net factory payroll after withholding 24,000
Factory overhead rate per direct labor hour 78
Other factory overhead incurred excluding spoilage and rework 20,150
Spoilage:
Normal spoilage common to all jobs P 4,000
Disposal value of normal spoilage 400
Abnormal spoilage 1,000
Disposal value of abnormal spoilage 20
Cost of rework common to all jobs (not included in the cost of direct materials and direct labor above)
Direct material P 1,000
Direct labor (10 hours) 800
Sale of normal scrap common to all jobs: (cost reduction method is used and scrap is not inventoried) 1,200
Based on the above data, prepare the following journal entries:
1. To record the purchase of material
2. To record the materials usage, excluding rework
3. To record the factory payroll
4. To record the payment of payroll to the employees
5. To record the distribution of payroll costs excluding rework
6. To record other factory overhead costs excluding spoilage and rework
7. To record the applied factory overhead excluding rework
8. To record the spoilage
9. To record the rework
10. To record the scrap
11. To record the cost of goods manufacturing
12. To record the cost of goods sold
13. To record the sale