Cost Accounting FNL

Ramirez Eugene EJ C
BSMA 2A
COST ACCOUNTING
Problem 1
a. Raw materials 820,000
Accounts payable 820,000
b. Work in process 720,000
Manufacturing overhead 40,000
Raw materials 760,000
c. Work in process 150,000
Sales commission expenses 180,000
Administrative salaries expenses 400,000
Salaries and wages payable 950,000
d. Sales travel expenses 34,000
e. Manufacturing overhead 86,000
f. Advertising expenses 360,000
g. Manufacturing overhead 560,000

Depreciation expenses 140,000
Accumulated depreciation 700,000
h. Manufacturing overhead 14,000
Insurance expenses 6,000
Prepaid insurance 20,000
i. Work in process 960,000
j. Finished goods 1,800,000
Work in process 1,800,000
k. Accounts receivable 3,000,000
Sales 3,000,000
Cost of goods sold 1,740,000
Finished goods 1,740,000
1.
Accounts Receivable Raw Materials Work in process
k. 3,000,000 Bal. 40,000 b. 760,000 Bal. 30,000 j. 1,800,000
a. 820,000 b. 720,000
Bal. 100,000 c. 150,000

i. 960,000
Bal. 60,000
Finished Goods Prepaid Insurance Accumulated Depreciation

Bal. 60,000 k. 1,740,000 h. 20,000 g. 700,000
j. 1,800,000
Bal. 120,000
Accounts Payable Salaries and wages payable Manufacturing Overhead

a. 820,000 c. 950,000 b. 40,000 i. 960,000
d. 34,000 c. 220,000
e. 86,000 e. 86,000
f. 360,000 g. 560,000
h. 14,000
Bal. 40,000
Sales Administrative Salary Expense Sales Commissions Expense
k. 3,000,000 c. 400,000 c. 180,000
Advertising Expense Depreciation Expense Sales Travel Expense

f. 360,000 g. 140,000 h. 34,000
Cost of Goods Sold Insurance Expense

k. 1,740,000 d. 6,000
Kalurky Manufacturing Company
Income Statement
For the Year Ended 2019
Sales 3,000,000
Less cost of goods sold (1,740,000 – 40,000) 1,700,000
Gross profit 1,300,000
Less selling and administrative expense:
Commissions expense 180,000
Administrative expense 400,000
Sales travel expense 34,000
Advertising expense 360,000
Depreciation expense 140,000
Insurance expense 6,000 1,120,000
Net operating income 180,000
Over applied manufacturing overhead
Manufacturing overhead (Debit) 40,000
Cost of goods sold (Credit) 40,000
PROBLEM 2
1. = 10,000 / 2,00 + 1.00
= 5 + 1.00
= 6.00 per DLH
2. Job Me = 6.00 x 1,400
= 8,400
Job You = 6.00 x 500
= 3,000
3. Job Me = 21,000 / 1,400
= 15
Job You = 7,500 / 500
= 15
4. Total manufacturing cost assigned to Job Me:
Direct materials 13,000

Direct labor 21,000
Manufacturing overhead applied 8,400
Total manufacturing cost 42,400
Unit product cost for Job Me:
Total Manufacturing Cost 42,400

Number of units in the job 20
Unit product cost 2,120
Total manufacturing cost assigned to Job You:

Direct materials 8,000
Direct labor 7,500
Total manufacturing cost 18,500
5. Raw Materials 22,000
Accounts Payable 22,000
Work in Process 21,000

Raw Materials 21,000
6. Work in Process 28,500
Wages Payable 28,500
7. Work in Process 11,400
Manufacturing Overhead 11,400
8. Direct Materials:
Raw materials inventory, beginning 0

Add: Purchases of raw materials 22,000
Total raw materials available 22,000
Deduct: Raw materials, ending 1,000
Raw materials used in production 21,000
Direct labor 28,500
Manufacturing overhead applied to work in process inventory 11,400
Total manufacturing costs 60,900
Add: Beginning work in process inventory 0
60,900
Deduct: Ending work in process inventory 18,500
Cost of good manufactured 42,400
9. Finished Goods 42,400
Work in Process 42,400
10. Work in Process
Beg. Bal. 0
a. 21,000
b. 28,500
c. 11,400 d. 42,400
End. Bal. 18,500
11. Finished goods inventory, Beginning 0
Add: Cost of goods manufactured 42,400

Cost of goods available for sale 42,400
Deduct: Finished goods inventory, ending 0
Unadjusted cost of goods sold 42,400
12. Cost of Goods Sold 42,400
Finished Goods 42,400
13. Actual Direct labor-hours 1,900
Predetermined overhead rate 6.00

Actual manufacturing overhead 12,500

Deduct: Manufacturing overhead applied 11,400
Underapplied overhead 1,100
14. Cost of Goods Sold 1,100
Manufacturing Overhead 1,100
PROBLEM 3
1. Cost of Goods Manufactured
Direct materials
Raw materials inventory, beginning 8,000
Add: Purchases of raw materials 132,000
Total raw materials available 140,000
Deduct: Raw materials inventory, ending 10,000
Raw materials used in production 130,000
Direct labor 90,000
Manufacturing overhead applied to work in process inventory 210,000
Total manufacturing costs 430,000
Add: Beginning work in process inventory 5,000
435,000
Deduct: Ending work in process inventory 20,000
Cost of goods manufactured 415,000
2. Cost of Goods Sold
Finished goods inventory, beginning 70,000

Add: Cost of goods manufactured 415,000
Cost of goods available for sale 485,000
Deduct: Finished goods inventory, ending 25,000
Unadjusted cost of goods sold 460,000
Add: Underapplied overhead 10,000
Adjusted cost of goods sold 470,000
3. Income Statement
Mamamoo Company
Income Statement
Sales 643,000
Cost of goods sold 470,000
Gross margin 172,000
Selling and administrative expenses 100,000
Selling expenses 43,000
Administrative expense 142,000
Net operating income 30,000
PROBLEM 4
a.
Date Receipts Issues Balance
Quality Price Amount Quality Price Amount Quality Price Amount
5/1/19 1,000 8 8,000 1,000 8 8,000
5/5/19 600 8.53 5,118 1,000 8 8,000
600 8.53 5,118
5/9/19 200 8 1,600 800 8 6,400
600 8.53 5,118
800 8 6,400
600 8.53 5,118
5/13/1
600 9 5,400 600 9 5,400
9
5/19/1
800 8 6,400 - - -
9
100 8.53 853 500 8.53 4,265
600 9 5,400
5/22/1
300 8.53 2,554 200 8.53 1,706
9
600 9 5,400
5/25/1
200 8.53 1,706 400 8.53 3,412
9
600 9 5,400
5/27/1
200 10 2000 400 8.53 3,412
9
600 9 5,400
200 10 2000
5/30/1
400 8.53 3,412 - - -
9
100 9 900 500 9 4,500
200 10 2,000
b. General journal entry for total purchases for May 2019
May 30 Materials 12,518

Accounts Payable 12,518
To record total purchases
c. General journal entry for total issues for May 2019
May 30 Work in process 14,918

Materials 14,918
To record total issues
PROBLEM 5
a. Material Cost
Factory Overhead Rate = P160,000

X 100% = 80% of direct material cost
P200,000
b. Direct Labor Cost

X 100% = 200% of direct labor cost
P80,000
c. Direct Labor Hours

X 100% = P 4.00/direct labor hours
P40,000
d. Machine Hours

X 100% = 6.40/machine hours
P25,000

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Ramirez Eugene EJ C

a. Raw materials 820,000

Accounts payable 820,000

b. Work in process 720,000

Manufacturing overhead 40,000

Raw materials 760,000

c. Work in process 150,000

Manufacturing overhead 220,000

Sales commission expenses 180,000

Administrative salaries expenses 400,000

Salaries and wages payable 950,000

d. Sales travel expenses 34,000

Accounts payable 34,000

e. Manufacturing overhead 86,000

Accounts payable 86,000

f. Advertising expenses 360,000

Accounts payable 360,000

g. Manufacturing overhead 560,000

Accumulated depreciation 700,000

h. Manufacturing overhead 14,000

Insurance expenses 6,000

Prepaid insurance 20,000

i. Work in process 960,000

Manufacturing overhead 960,000

j. Finished goods 1,800,000

Work in process 1,800,000

k. Accounts receivable 3,000,000

Cost of goods sold 1,740,000

Finished goods 1,740,000

Bal. 100,000 c. 150,000

Finished Goods Prepaid Insurance Accumulated Depreciation

Accounts Payable Salaries and wages payable Manufacturing Overhead

Sales Administrative Salary Expense Sales Commissions Expense

k. 3,000,000 c. 400,000 c. 180,000

Advertising Expense Depreciation Expense Sales Travel Expense

Cost of Goods Sold Insurance Expense

For the Year Ended 2019

Less cost of goods sold (1,740,000 – 40,000) 1,700,000

Gross profit 1,300,000

Less selling and administrative expense:

Commissions expense 180,000

Administrative expense 400,000

Sales travel expense 34,000

Advertising expense 360,000

Depreciation expense 140,000

Insurance expense 6,000 1,120,000

Net operating income 180,000

Over applied manufacturing overhead

Manufacturing overhead (Debit) 40,000

Cost of goods sold (Credit) 40,000

= 6.00 per DLH

2. Job Me = 6.00 x 1,400

Job You = 6.00 x 500

3. Job Me = 21,000 / 1,400

Job You = 7,500 / 500

4. Total manufacturing cost assigned to Job Me:

Direct materials 13,000

Unit product cost for Job Me:

Total Manufacturing Cost 42,400