Cost Acctg Chapter 3 PDF

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CHAPTER 3Multiple choices - Theoretical1. d 5. b 9. a2. a 6. d 10. d3. a 7. b 11. b4. d 8. a 12. dMultiple Choices – Computational1. (a)Total material requisitions P36,Less: Returned materials 477Material cost P36,2. (a)3. (a)Beginning balance 15,980 unitsPurchases 6,Issued (13,050)Ending inventory ...

Description

1

CHAPTER 3 Multiple choices - Theoretical

1. 2. 3. 4.

d a a d

5. 6. 7. 8.

b d b a

9. 10. 11. 12.

a d b d

Multiple Choices – Computational

1.

(a) Total material requisitions Less: Returned materials Material cost

2.

(a)

3.

(a) Beginning balance Purchases Issued Ending inventory Unit price Cost of ending inventory

4.

(a)

5.

(a)

P36,926 477 P36,440

15,980 units 6,600 (13,050) 9,530 units x P6.80 P9,546.80

2 SOLUTIONS TO PROBLEMS

Problem 3-1 MATERIALS LEDGER CARD W – 64

Materials Number Date June 1 4 10 15 16 19 23 27 29 30

Ref. Bal PO310 MR41 MR49 RM48 MR58 PO351 RSO24 MR61 RM56

Units

Reorder Point 600 units Reorder Quantity 1,200 units RECEIVED Price Amount

1,300

8.00

1,300 (100)

8.00 8.00

ISSUED Price Amounts

Units

10,400 250 1,150 (220) 120

8.00 8.00 8.00 8.00

2,000 9,200 (1,760) 960

620 (150)

8.00 8.00

4,960 (1,200)

10,400 (800)

Units 560 1,860 1,610 460 680 560 1,860 1,760 1,140 1,290

BALANCE Price Amounts P4,480 14,880 12,880 3,680 5,440 4,480 14,880 14,080 9,120 10,320

Problem 3-2 1.

MATERIALS REQUISITIONS JOURNAL

For the Month of

May

Date

Job No./Dept 25 26 Finishing 26

May 8

14 21 24

Req. No. 41 26 43 44

, 2010

Page

Work in Process ( DR 122) 26,150 49,600

FO Control (DR 501)

16,600 32,100 107,850

16,600

2 Materials (CR 121) 26,150 49,600 16,600 32,100 124,450

VOUCHERS REGISTER For the Month of May

Date

Voucher No.

May 4 17 26 29

051 052 053 RSO 28

Payable To Shaft Supply Ace Corp. Handyman Handyman

, 2010 Paid Check Date No.

Page Vouchers Payable Materials CR 201 DR 121 58,100 56,400 39,800 (3,900) 150,400

58,100 56,400 39,800 (3,900) 150,400

20

Other Accounts A/C No.

Debit

Credit

3 2.

MATERIALS

DATE May 1 31 31

EXPLANATION Balance

POST. REF VR 20 MR2

DEBIT

CREDIT

150,400 124,450

BALANCE 155,500 305,900 181,450

DR. CR. DR DR DR

Problem 3-3, 3-4 and 3-5 MATERIALS LEDGER

Materials Number Date Dec. 1 20

Reorder Point 6,000 units Reorder Quantity 13,000 units

Braces BR 10

Ref. Bal. PO705

Units

RECEIVED Price Amount

13,000

3.50

Units

ISSUED Price Amount

45,500

Materials Side Rail 6” Number RA-6 Date Dec. 1 1 20

Ref. Bal. R084 R087

Units

RECEIVED Price Amount

Ref. Bal. R015 R018 R019

Units 300 300

Units

RECEIVED Price Amount

BALANCE Price Amount 3.50 19,197.50 3.50 64,697.50

Reorder Point 3,000 units Reorder Quantity 8,000 units ISSUED Price Amount 11.50 11.50

Materials Side Rail 8” Number RA-8 Date Dec. 1 10 22 28

Units 5,485 18,485

3,450 3,450

Units 1,970 1,670 1,370

BALANCE Price Amount 11.50 22,655.00 19,205.00 15.755.00

Reorder Point 1.900 units Reorder Quantity 3,850 units Units 250 200 300

ISSUED Price Amount 14.00 14.00 14.00

3,500 2,800 4,200

Units 2,025 1,775 1,575 1,275

BALANCE Price Amount 14.00 28,350.00 24,850.00 22,050.00 17,850.00

4

Problems 3-3, 3-4 and 3-5 (continued): Materials Steps 4”x12” Number ST-12 Date Dec. 1 1 6 10 20 22 27 28

Ref. Bal. R084 PO073 R085 R087 R088 RSO8 R089

Units

Reorder Point 2,500 units Reorder Quantity 6,000 units

RECEIVED Price Amount

6,000

4.50

(800)

4.50

Units

ISSUED Price Amount

150

4.50

675.00

125 150 100

4.50 4.50 4.50

562.50 675.00 450.00

150

4.50

675.00

27,000

(3,600)

Materials Steps 4”x15” Number ST-15 Date Dec. 1 1 6 10 20 21 22 28

Ref. Bal. R084 PO073 R085 R087 RM84 R088 R089

Units

6.00

Units

ISSUED Price Amount

300

6.00

1,800

375 300 (25) 300 450

6.00 6.00 6.00 6.00 6.00

2,250 1,800 (150) 1,800 2,700

27,600

Materials Tops 6”x12” Number TO612 Date Dec. 1 1 10 16 20 22 28

Ref. Bal. R084 R085 PO074 R087 R088 R089

Units

5,000

Ref. Bal. R086

Units

Units 1,700 1,400 6,000 5,625 5,325 5,350 5,050 4,600

BALANCE Price Amount 6.00 10,200.00 8,400.00 36,000.00 33,750.00 31,950.00 32,100.00 30,300.00 27,600.00

Reorder Point 2,400 units Reorder Quantity 5,000 units

RECEIVED Price Amount

7.50

Units

ISSUED Price Amount

150 125

7.50 7.50

1,125 937

150 100 150

7.50 7.50 7.50

1,125 750 1,125

37,500

Materials Washers Number W-125 Date Dec. 1 1

BALANCE Price Amount 4.50 8,595.00 7,920.00 34,920.00 34,357.50 33,682.50 33,232.50 29,632.50 28,957.50

Reorder Point 2,500 units Reorder Quantity 4,600 units

RECEIVED Price Amount

4,600

Units 1,910 1,760 7,760 7,635 7,485 7,385 6,585 6,435

Units 1,440 1,290 1,165 6,165 6,015 5,915 5,765

BALANCE Price Amount 7.50 10,800.00 9,675.00 8,737.50 46,237.50 45,112.50 44,362.50 43,237.50

Reorder Point 300 boxes Reorder Quantity 940 boxes RECEIVED Price Amount

Units 25

ISSUED Price Amount 8.00

200

Units 675 650

BALANCE Price Amount 8.00 5,400 5,200

5 Problem 3-3 (continued)

2.

MATERIALS REQUISITIONS

DELIVER TO Welding Dept. CHARGE: ACCT, 122 JOB 72 QUANTITY

MAT. NO.

300 150 300 150

RA – 6 ST – 12 ST – 15 TO -612

Entered On Materials Ledger Card

Material Requisition No. DATE 12/1/2010

DESCRIPTION Side rails, 6” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”

Entered In Materials Req. Journal

(Student’s Initial)

P 11.50 4.50 6.00 7.50

Entered on Job Cost Sheet

(Student’s Initial)

Approved By:

250 125 375 125

RA - 8 ST – 12 ST – 15 TO -612

Entered On Materials Ledger Card

(Student’s Initial) Approved By:

P 3,450 675 1,800 1,125 P 7,050

(Student’s Initial)

Received By:

DELIVER TO Welding Dept. CHARGE: ACCT, 122 JOB 73 MAT. NO.

Material Requisition No. DATE 12/10/2010

DESCRIPTION Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”

Entered In Materials Req. Journal

(Student’s Initial Delivered by:

AMOUNT

Entered on Dept. Overhead Analysis Sheet

(Student’s Initial)

Delivered by:

QUANTITY

UNIT PRICE

084

085

UNIT PRICE

AMOUNT

P 14.00 4.50 6.00 7.50

P 3,500.00 562.50 2,250.00 937.50 P 7,250.00

Entered on Job Cost Sheet

(Student’s Initial) Received By:

Entered on Dept. Overhead Analysis Sheet (Student’s Inititial)

6 Problems 3-3 and 3-4 (continued)

JOB COST SHEET Customer: Chico Supply Co. Description: Aluminum Doors Quantity: 300 MATERIALS REQ. DATE NO. AMOUNT 12/1 R084 7,050 12/10 R087 7,050

Job 72 Date Started 12/1/2010 Date Completed

DIRECT LABOR REF. DATE NO. HRS. AMOUNT

MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT

JOB COST SHEET Customer: Apple Const. Supply Co. Description: Aluminum Ladders 6” Quantity: 250 MATERIALS REQ. DATE NO. AMOUNT 12/10 R085 7,250 12/21 RM84 (150) 12/22 R088 5,800

Job 73 Date Started 12/10/2010 Date Completed

DIRECT LABOR REF. DATE NO. HRS. AMOUNT

MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT

Problem 3-5 (continued) JOB COST SHEET Customer: Santol Co. Description: Aluminum Ladders 8” Quantity: 300 MATERIALS REQ. DATE NO. AMOUNT 12/28 R089 8,700

DIRECT LABOR REF. DATE NO. HRS. AMOUNT

Job 74 Date Started 12/28/2010 Date Completed MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT

7 Problem 3-4 (continued) RETURNED MATERIALS REPORT

CREDIT:

QUANTITY 25

ACCT. Job No.

Returned Materials Report No. 84 Date 12/21/2010 Dept.

73

MAT. NO. ST - 15

DESCRIPTION Steps, 4” x 15”

UNIT COST 6.00

AMOUNT 150.00

REASON FOR RETURN Entered on Materials Ledger Card (Student’s Initial)

Entered on Job Cost Sheet (Student’s Initial)

Entered on Dept. Overhead Analysis Sheet

Received by

8 Problem 3-5 (continued) 1.

MATERIALS REQUISITIONS

DELIVER TO Welding Dept. CHARGE: ACCT, 122 JOB 73 QUANTITY

MAT. NO.

200 100 300 100

RA – 8 ST – 12 ST – 15 TO -612

Entered On Materials Ledger Card

Material Requisition No. DATE 12/22/2010

DESCRIPTION Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”

Entered In Materials Req. Journal

(Student’s Initial) Approved By:

300 150 450 150

RA - 8 ST – 12 ST – 15 TO -612

Entered On Materials Ledger Card

(Student’s Initial) Approved By:

P 14.00 4.50 6.00 7.50

P 2,800.00 450.00 1,800.00 750.00 P 5,800.00

Entered on Dept. Overhead Analysis Sheet (Student’s Initial)

Received By:

DELIVER TO Welding Dept. CHARGE: ACCT, 122 JOB 74 MAT. NO.

AMOUNT

(Student’s Initial)

Delivered by:

QUANTITY

UNIT PRICE

Entered on Job Cost Sheet

(Student’s Initial)

Material Requisition No. DATE 12/28/2010

DESCRIPTION Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”

Entered In Materials Req. Journal

(Student’s Initial Delivered by:

088

089

UNIT PRICE

AMOUNT

P 14.00 4.50 6.00 7.50

P 4,200.00 675.00 2,700.00 1,125.00 P 8,700.00

Entered on Job Cost Sheet

(Student’s Initial) Received By:

Entered on Dept. Overhead Analysis Sheet (Student’s Inititial)

9 Problem 3-5 (continued) 4.

MATERIALS

DATE Dec. 1 31 31 31 31

EXPLANATION Balance

POST. REF VR 12 VR 12 MR12 RM12

5.

DEBIT

CREDIT

137,600 3,600 36,050 150

BALANCE 105,197.50 242,797.50 239,197.50 203,147.50 203,297.50

DR. CR. DR DR DR DR DR

Star Aluminum, Inc. Schedule of Materials December 31, 2010 Braces Side rails, 6” Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12” Washers, 1/4” flat (Box of 100) Total

P64,697.50 15,755.00 17,855.00 28,957.50 27,600.00 43,237.50 5,200.00 P203,297.50

Problem 3-4 (continued) DEPARTMENTAL OVERHEAD ANALYSIS SHEET Department Welding

DATE Dec..18

REF. R086

TOTAL 2,000

Month of INDIRECT MATERIALS 2,000

INDIRECT LABOR

REPAIRS

December , 2010

ITEMS

OTHER AMOUNT

Problem 3-3, 3-4 and 3-5 (continued) VOUCHERS REGISTERS For the Month of December , 2010

Date

Voucher No.

Dec. 6 16 20 27

101 102 103 104

Payable To Doors Dist.,Inc. Don Jose, Inc. Pedro Hardware King Dev., Inc.

Paid Check Date No.

Page Vouchers Payable Materials CR 201 DR 121 54,600 37,500 45,500 7,650

54,600 37,500 45,500

145,250

137,600

12

Other Accounts A/C No.

201 121

Debit

Credit

11,250 11,250

3,600 3,600

10 Problem 3-3, 3-4 and 3-5 (continued) MATERIALS REQUISITIONS JOURNAL For the Month of December Date Dec.

1

10 18 20 22 28

Req. No. 084 085 086 087 088 089

, 2010

Job No./Dept 72 73 Assembly 72 73 74

Page

Work in Process ( DR 122) 7,050 7,250

FO Control (DR 501)

Materials (CR 121) 7,050 7,250 200 7,050 5,800 8,700 36,050

200 7,050 5,800 8,700 35,850

12

200

RETURNED MATERIALS JOURNAL For the Month of December Date Dec.

21

Req. No. 084

, 2010

Job No./Dept 73

Work in Process ( DR 122) 150

Page FO Control (DR 501)

12 Materials (CR 121) 150

11 Problem 3-4 (continued)

1.

MATERIALS REQUISITIONS

DELIVER TO Assembly Dept. CHARGE: ACCT, 122 JOB QUANTITY

MAT. NO.

25 boxes

W – 125

Entered On Materials Ledger Card

Material Requisition No. DATE 12/18/2010

DESCRIPTION Washers, ¼” flat (Box of 100)

Entered In Materials Req. Journal

(Student’s Initial)

300 150 300 150

RA – 6 ST – 12 ST – 15 TO -612

Entered On Materials Ledger Card (Student’s Initial) Approved By:

P200

(Student’s Initial)

Received By:

DELIVER TO Assembly Dept. CHARGE: ACCT, 122 JOB 72 MAT. NO.

Material Requisition No. DATE 12/20/2010

DESCRIPTION Side rails, 6” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”

Entered In Materials Req. Journal (Student’s Initial) Delivered by:

AMOUNT

Entered on Dept. Overhead Analysis Sheet

(Student’s Initial)

Delivered by:

QUANTITY

8.00

Entered on Job Cost Sheet

(Student’s Initial)

Approved By:

UNIT PRICE

086

UNIT PRICE P 11.50 4.50 6.00 7.50

Entered on Job Cost Sheet (Student’s Initial) Received By:

087

AMOUNT P 3,450 675 1,800 1,125 P 7,050

Entered on Dept. Overhead Analysis Sheet (Student’s Initial)...