Reference no: EM132834524
Questions -
A. Josiah Inc. has provided the following information for 20x5:
a. Purchased raw materials on account for P120,000.
b. Issued P115,000 in raw materials to production (P22,000 were not traceable to specific jobs).
c. Incurred P115,000 in direct labor costs (14,375 hours) and P62,500 in supervision costs (paid in cash).
d. Incurred the following additional manufacturing overhead costs: factory lease P24,000 (paid in cash); depreciation on equipment P20,000; custodial supplies P7,500 (paid in cash).
e. Incurred the following nonmanufacturing costs, both paid in cash: advertising P75,000; sales commissions P88,000.
f. Applied manufacturing overhead to jobs in process at a rate of P10 per direct labor hour.
g. Completed jobs costing a total of P345,000.
h. Sold jobs for P425,000 on account. The cost of the jobs was P342,000.
i. Closed the Manufacturing Overhead account balance.
Compute for the following:
1. What is the Ending Balance of the Work In Process?
2. What are the Total Manufacturing Costs?
3. What is the Cost of Goods Sold? (after adjustment of over/under applied Factory Overhead, assumed to be immaterial).
4. What is the over/underapplied Factory Overhead? (indicate whether over or under applied)
5. What is the Gross Profit?
B. The following were from the books of Sun Company for March 2015:
Inventories March 1, 2015 March 31, 2015
Raw Materials P ? P 20,000
Work in process 90,000 100,000
Finished Goods 120,000 180,000
Raw materials purchased 100,000
Factory overhead, 75% of direct labor cost 126,000
Selling and Administrative expense, 10% of sales 50,000
Net income for March, 2015 50,000
Required:
6. Cost of goods sold for March __________?
7. Cost of goods manufactured for March __________?
8. Inventory of raw materials as of March 1. __________?
C. Beach Inc. had produced 10,000 units of corral necklaces during the year. To produce the 10,000 units, the following costs were incurred during the year:
Factory rent 120,000 Direct materials 60,000
Direct labor 80,000 Indirect materials 10,000
Indirect labor 65,000 Depreciation expense 20,000
Utilities 12,000 Repairs 40,000
(60% is variable) (30% is fixed)
Other factory Electricity 70,000
Overhead 8,000 (80% is variable) (100% variable)
Required: Solve for the following
9. Variable cost per unit __________?
10. Fixed cost per unit __________?
11. Total direct costs __________?
12. Total indirect costs __________?
13. Total costs to produce 20,000 units __________?