Accounting for Partnership and Corporation SOLMAN (Baysa & Lupisan, 2014) Chapter 12 PDF

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Summary

CHAPTER 12 Introduction to Cost Accounting E 1. A 2. A 3. A C 4. A 5. A E 6. 7. 8. 9. 10. A A A A 11. 12. 13. 14. 15. A A A A A 16. 17. 18. 19. 20. A A C A A Lacbay Manufacturing Company Income Statement For the Month Ended April 30, 2010 Sales Cost of Goods Sold Gross Profit Operating Expenses: Mar...

Description

CHAPTER 12 Introduction to Cost Accounting E 12-1 1. A 2. A 3. A & C 4. A 5. A E 12-2

6. 7. 8. 9. 10.

A A A A&C A

11. 12. 13. 14. 15.

A A A A A

16. 17. 18. 19. 20.

A A C A A

Lacbay Manufacturing Company Income Statement For the Month Ended April 30, 2010 Sales Cost of Goods Sold Gross Profit Operating Expenses: Marketing Expenses Administrative Expenses Profit before Income Tax Income Tax Profit

P1,440,000 966,000 P 474,000 P72,000 14,400

86,400 P 387,600 135,660 P251,940

Lacbay Manufacturing Company Statement of Cost of Goods Sold For the Month Ended April 30, 2010 Direct Materials: Raw Materials Inventory, beginning Raw Materials Purchases Raw materials Available for Use Less Raw Materials Inventory, end Direct Materials Used Direct Labor Factory Overhead Total Manufacturing Cost Add Work in Process Inventory, beginning Total Cost of Work Put into Process Less Work in Process Inventory, end Cost of Goods Manufactured Add Finished Goods Inventory, beginning Cost of Goods Available for Sale Less Finished Goods Inventory, end Cost of Goods Sold E 12-3 1. Raw Materials, June 30 Add Raw Materials Put into Process Raw materials Available for Use Less Raw Materials, June 1 Raw Materials Purchased

P120,000 720,000 P840,000 170,000 P 670,000 300,000 200,000 P1,170,000 160,000 P1,330,000 300,000 P1,030,000 140,000 P1,170,000 204,000 P 966,000

P150,000 240,000 P390,000 120,000 P270,000

Chapter 12- Suggested Answers (APC-2011)

2.

3.

Raw Materials Put into Process Add Direct Labor Department A Department B Prime Costs Direct Labor Add Factory Overhead Department A (P140,000 x 120%) Department B (P160,000 x 80%) Conversion Costs

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P240,000 P140,000 160,000

300,000 P540,000 P300,000

P168,000 128,000

296,000 P596,000

4.

Raw Materials Put into Process Direct Labor Factory Overhead Total Manufacturing Cost

P240,000 300,000 296,000 P836,000

5.

Total Manufacturing Cost Add Work in Process, June 1 Total Cost of Work Put into Process Less Work in Process, June 30 Cost of Goods Manufactured

P836,000 160,000 P996,000 128,000 P868,000

6.

Cost of Goods Manufactured Add Finished Goods, June 1 Cost of Goods Available for Sale Less Finished Goods, June 30 Cost of Goods Sold

P868,000 108,000 P976,000 120,000 P856,000

E 12-4 Company A Finished Goods, beginning Add Cost of Goods Manufactured Cost of Goods Available for Sale Less Cost of Goods Sold (P8,000,000 x 60%) Finished Goods, end

P1,200,000 7,600,000 P8,800,000 4,800,000 P4,000,000

Company B Cost of goods sold Add Finished goods, end Cost of goods available for sale

P2,600,000 380,000 P2,980,000

Company C Cost of Goods Manufactured Add Finished Goods, beginning Cost of Goods Available for Sale Less Finished Goods, end Cost of Goods Sold Add Gross Profit Sales

P680,000 90,000 P770,000 104,000 P666,000 192,000 P858,000

Chapter 12- Suggested Answers (APC-2011)

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E 12-5 a.

Raw Materials Purchases Vouchers Payable

80,000 80,000

b.

no entry

c.

Factory Payroll Withholding Taxes Payable SSS Contributions Payable Medicare Contributions Payable Vouchers Payable

80,000

Vouchers Payable Cash

64,120

Direct Labor Indirect Labor Factory Payroll

64,000 16,000

d.

e.

f.

g.

h.

i.

Factory Payroll Taxes SSS Contributions Payable Medicare Contributions Payable Employees’ Compensation Contributions Payable Sundry Factory Overhead Vouchers Payable Depreciation Expense – Factory Insurance – Factory Property Taxes – Factory Prepaid Insurance Accumulated Depreciation – Factory Accrued Property Taxes Raw Materials, end Work in Process, end Manufacturing Summary P80,000 - P66,000 – P4,000 = P10,000

9,600 6,000 280 64,120

64,120

80,000 8,000 6,000 640 1,360 36,000 36,000 4,200 1,560 2,500 1,560 4,200 2,500 10,000 18,260 28,260

P66,000 + P64,000 + P4,000 + P16,000 + P8,000 + P36,000 +

P4,200 + P1,560 + P2,500 – P184,000 = P18,260 j.

k.

Accounts Receivable Sales Cash Accounts Receivable

160,000 160,000 80,000 80,000

Chapter 12- Suggested Answers (APC-2011)

l.

m.

Manufacturing Summary Raw Materials Purchases Direct Labor Indirect Labor Factory Payroll Taxes Sundry Factory Overhead Depreciation Expense – Factory Insurance – Factory Property Taxes – Factory Finished Goods, end Income Summary P184,000 – (P160,000 x 75%) = P64,000

E 12-6 1. Direct Materials, January 1 Add Purchases of Direct Materials Direct Materials Available for Use Less Direct Materials, December 31 Direct Materials Used

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212,260 80,000 64,000 16,000 8,000 36,000 4,200 1,560 2,500 64,000 64,000

P12,800 18,000 P30,800 10,800 P20,000

2.

Cost of Goods Sold (3) Add Gross Profit Sales

P105,400 22,600 P128,000

3.

Cost of Goods Manufactured Add Finished Goods, January 1 Cost of Goods Available for Sale Less Finished Goods, December 31 Cost of Goods Sold

P100,000 16,000 P116,000 10,600 P105,400

4.

Direct Materials Used (1) Direct Labor Factory Overhead Total Manufacturing Cost

P 20,000 26,000 58.000 P104,000

5.

Cost of Goods Manufactured Add Work in Process, December 31 Total Cost of Work Put into Process Less Total Manufacturing Cost Work in Process, January 1

P100,000 4,000 P104,000 104,000 P - 0--

6.

Direct Materials Used (7) Add Direct Materials, December 31 Direct Materials Available for Use Less Purchases of Direct Materials Direct Materials, January 1

P11,800 9,200 P21,000 14,000 P 7,000

Chapter 12- Suggested Answers (APC-2011)

7.

Total Manufacturing Cost Less: Direct Labor Factory Overhead Direct Materials Used

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P43,000 P16,000 15,200

31,200 P11,800

8.

Cost of Goods Sold Add Finished Goods, December 31 Cost of Goods Available for Sale Less Finished Goods, January 1 Cost of Goods Manufactured

P44,000 10,600 P54,600 8,000 P46,600

9.

Sales Less Cost of Goods Sold Gross Profit

P67,600 44,000 P23,600

10.

Total Manufacturing Cost Add Work in Process, January 1 Total Cost of Work Put into Process Less Cost of Goods Manufactured (8) Work in Process, December 31

P43,000 9,600 P52,600 46,600 P 6,000

11.

Total Manufacturing Cost (15) Less: Direct Materials Used Factory Overhead Direct Labor

P80,800 P18,800 26,000

44,800 P36,000

12.

Direct Materials Used Add Direct Materials, December 31 Direct Materials Available for Use Less Direct Materials, January 1 Purchases of Direct Materials

P18,800 11,000 P29,800 13,800 P16,000

13.

Sales Less Gross Profit Cost of Goods Sold

14.

Cost of Goods Sold (13) Add Finished Goods, December 31 Cost of Goods Available for Sale Less Finished Goods, January 1 Cost of Goods Manufactured

P86,000 12,400 P98,400 15,600 P82,800

15.

Cost of Goods Manufactured (14) Add Work in Process, December 31 Total Cost of Work Put into Process Less Work in Process, January 1 Total Manufacturing Cost

P82,800 600 P83,400 2,600 P80,800

P110,000 24,000 P 86,000

Chapter 12- Suggested Answers (APC-2011)

16.

Direct Materials, January 1 Add Direct Materials Purchased Materials Available for Use Less Direct Materials Used Direct Materials, December 31

17.

Total Manufacturing Cost Less: Direct Materials Used Direct Labor Factory Overhead

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P 3,000 16,000 P19,000 11,200 P 7,800 P36,200 P11,200 12,000

23,200 P13,000

18.

Cost of Goods Manufactured Add Finished Goods, January 1 Cost of Goods Available for Sale Less Cost of Goods Sold Finished Goods, December 31

P36,200 12,000 P48,200 34,000 P14,200

19.

Sales Less Cost of Goods Sold Gross Profit

P80,000 34,000 P46,000

20.

Cost of Goods Manufactured Add Work in Process, December 31 Total Cost of Work Put into Process Less Total Manufacturing Cost Work in Process, January 1

P36,200 5,000 P41,200 36,200 P 5,000

P 12 – 1 1.

Total Manufacturing Cost Less Cost of Goods Manufactured Difference in Work in Process beginning and ending Work in Process, December 31

P3,600,000 3,400,000 P 200,000 ÷ 20% P1,000,000

2.

Total Manufacturing Cost Add Work in Process, January 1 (P1,000,000 x 80%) Total Cost of Goods Put into Process

P3,600,000 800,000 P4,400,000

3.

Total Manufacturing Cost Less: Manufacturing Overhead (P3,600,000 x 25%) Direct Labor (P900,000 / 72%) Direct Materials Used

P3,600,000 P 900,000 1,250,000

2,150,000 P1,450,000

P 12 – 2 1.

a.

b.

Raw Materials Purchases Vouchers Payable

400,000

Other Factory Overhead Vouchers Payable

70,000

400,000

70,000

Chapter 12- Suggested Answers (APC-2011)

c.

d.

e.

Direct Labor Indirect Labor Sales Salaries Administrative Salaries Withholding Taxes Payable SSS Contributions Payable Medicare Contributions Payable Pag-ibig Contributions Payable Vouchers Payable

280,000 60,000 50,000 30,000

Vouchers Payable Cash

351,310

Factory Payroll Taxes Sales Payroll Taxes Administrative Payroll Taxes SSS Contributions Payable Medicare Contributions Payable Pag-ibig Contributions Payable

f.

No entry

g.

No entry

h.

Accounts Receivable Sales

i.

j.

k1

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37,040 16,800 2,250 12,600 351,310

351,310 28,400 4,750 2,700 21,000 2,250 12,600

1,078,000 1,078,000

Cash Accounts Receivable

810,000

Vouchers Payable Cash

440,000

Work in Process, end Raw Materials, end Indirect Materials Manufacturing Summary

810,000

440,000 94,400 60,000 70,000 224,400

P36,000 + P70,000 + P280,000 + 60,000 + P28,400 + P370,000 + P70,000 – P820,000 = P94,400 P100,000 + P400,000 – P370,000 – P70,000 = P60,000

k2.

Manufacturing Summary Raw Material Purchases Other Factory Overhead Direct Labor Indirect Labor Factory Payroll Taxes Indirect Materials

908,400 400,000 70,000 280,000 60,000 28,400 70,000

Chapter 12- Suggested Answers (APC-2011)

k3.

k4.

k5.

k6.

k7.

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Manufacturing Summary Work in Process, beginning Raw Materials, beginning

136,000

Finished Goods Income Summary P70,000 + P820,000 – P770,000 = P120,000

120,000

Income Summary Finished Goods, beginning Sales Manufacturing Summary Sales Salaries Administrative Salaries Sales Payroll Taxes Administrative Payroll Taxes Income Tax Income Summary Income Summary Retained Earnings

36,000 100,000

120,000

70,000 70,000 1,078,000 820,000 50,000 30,000 4,750 2,700 66,165 104,385 154,385 154,385

Lamasan Company Cost of Goods Sold Statement For the Month Ended July 31, 2010 Direct Materials: Raw Materials, beginning Add Raw Materials Purchases Raw Materials Available for Use Less: Indirect Materials Raw Materials, end Direct Materials Used Direct Labor Factory Overhead: Indirect Materials Indirect Labor Factory Payroll Taxes Other Factory Overhead Total Manufacturing Cost Add Work in Process, beginning Total Cost of Work Put into Process Less Work in Process, end Cost of Goods Manufactured Add Finished Goods, beginning Cost of Goods Available for Sale Less Finished Goods, end Cost of Goods Sold

P100,000 400,000 P500,000 P70,000 60,000

P70,000 60,000 28,400 70,000

130,000 P370,000 280,000

228,400 P878,400 36,000 P914,400 94,400 P820,000 70,000 P890,000 120,000 P770,000

Chapter 12- Suggested Answers (APC-2011)

3.

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Lamasan Company Income Statement For the Month Ended July 31, 2010

Sales Cost of Goods Sold Gross Profit Operating Expenses: Administrative Salaries Administrative Payroll Taxes Sales Salaries Sales Payroll Taxes Profit before Income Tax Income Tax Profit

P1,078,000 770,000 P 308,000 P30,000 2,700 50,000 4,750

Lamasan Company Statement of Financial Position July 31, 2010 ASSETS Cash (P200,000 - P351,310 + P810,000 – P440,000) Accounts Receivable (P120,000 + P1,078,000 – P810,000) Finished Goods Work in Process Raw Materials TOTAL ASSETS

P218,690 388,000 120,000 94,400 60,000 P881,090

LIABILITIES Vouchers Payable (P36,000 + P400,000 + P70,000 + P351,310 – P351,310 – P440,000) Income Tax Payable Withholding Taxes Payable SSS Contributions Payable (P16,800 + P21,000) Medicare Contributions Payable (P2,250 + P2,250) Pag-ibig Contributions Payable (P12,600 + P12,600) TOTAL LIABILITIES SHAREHOLDERS’ EQUITY Ordinary Share Capital Retained Earnings (P90,000 + P154,385) TOTAL STOCKHOLDERS’ EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

87,450 P 220,550 66,165 P154,385

P 66,000 66,165 37,040 37,800 4,500 25,200 P236,705

P400,000 244,385 644,385 P881,090

P 12 – 3 1.

Raw Materials, beginning Add Raw Materials Purchases Raw Materials Available for Use Less: Direct Materials Used Raw Materials, end Indirect Materials Used

P128,000 168,000 P296,000 P156,000 120,000

276,000 P 20,000

Chapter 12- Suggested Answers (APC-2011)

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2.

Factory Payroll paid Accrued Payroll Direct Labor Indirect labor

P 88,000 12,000 (64,000) P 36,000

3.

Indirect Materials Indirect Labor Factory Insurance Depreciation of Factory Equipment Factory Utility Service Total Factory Overhead

P 20,000 36,000 1,200 6,800 12,000 P 76,000

4.

Direct Materials Used Direct Labor Factory Overhead Total Manufacturing Cost Add Work in Process, beginning Total Cost of Work Put into Process Less Work in Process, end Cost of Goods Manufactured

P156,000 64,000 76,000 P296,000 164,000 P460,000 188,000 P272,000

5.

Cost of Goods Manufactured Add Finished Goods, beginning Cost of Goods Available for Sale Less Finished Goods, end Cost of Goods Sold

P272,000 592,000 P864,000 608,000 P256,000

P 12 – 4 1. P180,000 2. P 30,000 3. P 46,000 4. P 12,000 5. P 34,000 6. P 36,000 7. P 94,000 8. P 30,000 9. P 82,000

1.

B

10. 11. 12. 13. 14. 15. 16. 17.

P 12,000 P 34,000 P 42,600 P123,600 P 42,000 P 36,600 P132,400 P 95,000

MC Cost of Goods Manufactured Finished Goods, beginning Finished Goods, end Cost of Goods Sold Gross Profit Sales

18. 19. 20. 21. 22. 23. 24. 25.

P260,000 P18,000 P78,000 P53,400 P80,400 P32,600 P36,600 P40,000

P680,000 90,000 ( 104,000) P666,000 192,000 P858,000

Chapter 12- Suggested Answers (APC-2011)

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2

A

Raw Materials Purchased Less Increase in Raw Materials Inventory Direct Materials Used Direct Labor Factory Overhead Total Manufacturing Cost = Cost of Goods Manufactured Decrease in Finished Goods Inventory Cost of Goods Sold

P 860,000 30,000 P 830,000 400,000 600,000 P1,830,000 70,000 P1,900,000

3

D

Direct Materials, December 1 Direct Materials Purchases Direct Materials, December 31 Direct Materials Used Direct Labor Prime Cost

4

B

Direct Labor Factory Overhead [(P120,000 /15) x 20] Conversion Cost

P120,000 160,000 P280,000

5

D

Prime Cost Factory Overhead Total Manufacturing Cost Work in Process, December 1 Work in Process, December 31 Cost of Goods Manufactured

P300,000 160,000 P460,000 36,000 (24,000) P472,000

6

C

Beginning inventories (P80,000 + P50,000 + P120,000) Ending inventories (P100,000 + P70,000 + P140,000) Direct Labor Factory Overhead Cost of Goods Sold Direct Materials Purchases

P250,000 (310,000) 240,000 216,000 (756,000) P360,000

7

B

Cost of Goods Sold Finished Goods, September 30 Finished Goods, September 1 Cost of Goods Manufactured

P756,000 140,000 (120,000) P776,000

8

C

P756,000 x 200% =

9

A

Direct Materials, June 1 Purchases Direct Materials, June 30 Direct Materials Used in production

10

A

Direct Materials Used Direct Labor Prime Cost

P

72,000 168,000 ( 60,000) P 180,000 120,000 P300,000

P1,512,000 P246,000 825,720 (375,908) P695,812 P 695,812 428,216 P1,124,028

Chapter 12- Suggested Answers (APC-2011)

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11

A

Direct Labor Factory Overhead (P16,470 x 11) Conversion Cost

P428,216 181,170 P609,386

12

C

Prime Cost Factory Overhead Total Manufacturing Cost Work in Process, June 1 Total Cost of Goods Placed in Process

P1,124,028 181,170 P1,305,198 648,040 P1,953,238

13

C

Total Cost of Goods Placed in Process Less Work in Process, June 30 Cost of Goods Manufactured

P1,953,238 1,153,382 P 799,856

14

B

Cost of Goods Manufactured Finished Goods, beginning Finished Goods, ending Cost of Goods Sold

P799,856 1,196,642 (1,587,278) P409,220

15

C

P428,216/16470 =

P26.00

16

B

P125,000/12.5% =

P1,000,000

17

C

P315,000/75% =

18

C

Sales Operating Expenses Profit Cost of Goods Sold

P420,000 P1,000,000 P125,000 125,000

19

B

Beginning Inventories Ending inventories Purchases Direct Labor Factory Overhead Cost of Goods Sold Raw Materials, beginning

20

A

P200,000 + P230,000 – P250,000 =

TM 44 1. T 2. F 3. T 4. F 5. F

6. 7. 8. 9. 10.

F T F T F

250,000 P750,000 P700,000 (1,115,000) 230,000 420,000 315,000 (750,000) P200,000

11. 12. 13. 14. 15.

F T T F F

P180,000

16. 17. 18. 19. 20.

F T F T F

Chapter 12- Suggested Answers (APC-2011)

TM 45 1. 2. 3. 4. 5.

A B H D K

TM 46 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

TM 47 1. B

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