De Leon- Cost Accounting PDF

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Cost Accounting Chapter 2 Costs Concepts and classification Problem 1 1. Direct 2. Indirect 3. Direct 4. Direct 5. Direct 6. Direct 7. Direct 8. Indirect 9. Direct 10 Problem 2 1. Manufacturing 2. Selling 3. Manufacturing 4. Selling 5. Administrative Problem 3 1. Variable 2. Variable 3. Fixed 4. Var...

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Cost Accounting Chapter 2 - Costs – Concepts and classification Problem 1 1. Direct 2. Indirect 3. Direct 4. Direct 5. Direct

6. Direct 7. Direct 8. Indirect 9. Direct 10.Direct

Problem 2 1. Manufacturing 2. Selling 3. Manufacturing 4. Selling 5. Administrative

Problem 3 1. Variable 2. Variable 3. Fixed 4. Variable 5. Fixed 6. Fixed 7. Fixed 8. Variable 9. Fixed 10.Fixed

Product Product Product Product Product Period Period Period Product Period

Direct Direct Indirect Direct Indirect Indirect Indirect Direct Indirect Indirect

Problem 4 – Bug Company 1. Fixed Period 2. Fixed Inventoriable 3. Variable Inventoriable 4. Variable Inventoriable 5. Fixed Inventoriable

6. Variable 7. Variable 8. Fixed 9. Fixed 10. Fixed

Period Inventoriable Inventoriable Period Inventoriable

Problem 5 – Rounin Manufacturing Company 1. Direct materials Direct labor Prime cost 2.

Direct labor FO (10,000 + 9,000 +25000) Conversion costs

3.

Direct materials Direct labor Factory overhead Product costs

Problem 6 – Mother Goose Company 1. Prime costs 2. Conversion cost

6. Manufacturing 7. Administrative 8. Selling 9. Administrative 10.Selling

50,000 60,000 110,000 60,000 44,000 104,000 50,000 60,000 44,000 154,000

-

430,000 525,000

3 Inventoriable cost 4. Total period costs Problem 7 – Blanche Corporation ` 1. Direct materials used Direct labor Variable manufacturing overhead Variable marketing Total variable cost per unit X No. of units produced and sold Total variable costs per month

-

710,000 305,000

P 30.00 20.00 15.00 3.00 68.00 20,000 P 1,360,000

2. Fixed manufacturing overhead Fixed marketing costs Total fixed cost per unit X No. of units produced and sold Total fixed costs per month

Page 2 – Chapter 2 Prblem 8 1. Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing cost per unit `

2. Total variable manufacturing cost per unit Variable marketing and administrative Total variable costs per unit

P 10.00 4.00 14.00 20,000 P 280,000

P 60.00 30.00 9.00 P 99.00 P 99.00 6.00 105.00

3. Total variable manufacturing cost per unit P 99,00 Fixed manufacturing overhead (30,000/1,200) 25.00 Full manufacturing cost per unit 124.00 4. Full manufacturing cost per unit Variable marketing and administrative Fixed marketing and administrative Full cost to make and sell per unit Problem 9 - Chiz Manufacturing Company 1. Materials put into production Direct labor Prime costs

124.00 6.00 20.00 150.00

P 90,000 95,000 P 185,000

2. Direct labor Factory overhead Indirect materials Indirect labor Other overhead cost Total conversion costs

95.000 60,000 25,000 60,000

3. Direct materials Direct labor Factory overhead Total product costs

145,000 240,000 90,000 95,000 145,000 330,000

4. none Problem 10 – Johnson Corporation 1. Variable cost per machine hour = 35,600 – 20,000 4,000 - 2,000 = 7.50 per machine hour 2. Total electricity expense Less: Variable costs ( 4,000 x 7.50) ( 2000 x 7.50) Fixed cost 3.

4,000 hours 35,000

2000 hours 20,000

30,000 ______ 5,000

Fixed cost Variable cost ( 6,000 x 7.50) Totl manufacturing costs

15,000 5,000 5,000 45,000 50,000

Problem 11 – Valdez Motors Co. 1. Variable cost per machine hour = 5,475 – 3,975 210 - 145 = 23.08 per machine hour 2. Total overhead costs Less: Variable costs ( 210 x 23.08) ( 145 x 23.08) Fixed cost

Page 3 Problem 12 – Justine Company

210 hours 5,475 4,847 _____ 628

145 hours 3,975

3,347 628

1

Variable cost per hour = 4,470 – 2,820 520 - 300 = 7.50 per hour

2. Total Less: Variable cost 520 x 7.50 300 x 7.50 Fixed cost 3.

Total cost = P 570 + P7,50 X

4.

Fixed cost Variable ( 420 hrs. x P 7.50) Total maintenance cost

520 hours 4,470 3,900 _____ 570

P

300 hours 2,820

2,250 570

570 3,150 P 3,720

True/False Questions 1. False 6. True 2. False 7. False 3. True 8. True 4. False 9. False 5. False 10. True

11. False 12. False 13. True 14. False 15. False

16. True 17. False 18. True 19. False 20. True

Multiple choice – Theory 1. B 6. A 2. C 7. D 3. B 8. D 4. C 9. B 5. D 10. C

11. C 12. A 13. C 14. B 15. B

16. B 17. B 18. A 19. D 20. B

Multiple choice – Problems 1. A 6. A 2. B 7. C 3. C 8. C 4. C 9. A 5. B 10. C

11. A 12. B 13. B 14. C 15. B

16. A 17. B 18. D 19. A 20. A

CHAPTER 3 - COST ACCOUNTING CYCLE Problem 1 - Ram Manufacturing Company

Direct materials used (75,000 x 90%) 67,500.00 Direct labor (97,000 x 93% ) 90,210.00 Factory overhead (90,210 x 12%) Total manufacturing costs Work in process, January 1 Cost of goods put into process 295,972.50 Less: Work in process, January 31 Cost of goods manufactured 268,972.50

Problem 2 - Donna Company Direct materials used Materials, May 1 Purchases Total available Less> Mat.- May 31 97,000 Direct labor Factory overhead Total manufacturing costs Work in process, May 1 Cost of goods put into process 322,800 Less: Work in process, May 31 Cost of goods manufactured 304,800 Finished goods – May 1 Total goods available for sale 349,800 Less: Finished goods – May 31 Cost of goods sold

112,762.50 270,472.50 25,500.00

27,000.00

22,000 100,000 122,000 25,000 80,000 120,000 297,000 25,800

18,000

45,000

24,000 325,800

Problem 3 – Blanche Corporation 1, Income Statement Sales 1,200,000 Less: Cost of goods sold 751,000 Gross profit 449,000 Less: Operating expenses Marketing 60,000 Administrative 12,000 72,000

Net income

Blanche Corporation 2. Direct materials used Materials, March 1 Purchases Total available Less> Mat.- March 31 408,000 Direct labor Factory overhead Total manufacturing costs Work in process, March 1 Cost of goods put into process 858,000 Less: Work in process, March 31 Cost of goods manufactured 763,000 Finished goods – March 1 Total goods available for sale 853,000 Less: Finished goods – March 31 Cost of goods sold

Problem 4 - Roy Company 1, Entries a. Materials Accounts payable b. Payroll Withholding taxes payable SSS Premiums payable Phil Health contributions payable Pag-ibig funds contributions payable 1,620 Accrued payroll Work in process

377,000

50,000 400,000 450,000 42,000 210,000 140,000 758,000 100,000

95,000

90,000

102,000 751,000

120,000 120,000 54,000 11,200 2,400 375

38,405 45,000

Factory overhead control Payroll

9,000

54,000 c. Materials Accounts payable

25,000 25,000

d. Factory overhead control SSS premiums payable Phil Health contributions payable Pag-ibig funds contributions payable

5,595 3,600 375 1.620

e. Work in process Factory overhead control Materials

75,000

f. Accounts payable Materials

1,000

Page 2 – Chapter 3 g. Accounts payable Accrued payroll Cash

14,000 89,000

1,000

136,500 38,405 174,905

h. Factory overhead control Miscellaneous accounts i. Work in process Factory OH Applied (45,000 x 120%)

16,900 16,900 54,000 54,000

j. Finished goods Work in process

116.000 116,000

k. Accounts receivable Sales

150,000 150,000

Cost of goods sold Finished goods 2. Statement of cost of goods sold . Direct materials used Purchases Less: Purchase returns Total available for use Less> Mat.- October 31 89,000

90,000 90,000

145,000 1,000 144,000 55,000

Direct labor Factory overhead Total manufacturing costs Less: Work in process, October 31 Cost of goods manufactured 116,000 Less: Finished goods – March 31 Cost of goods sold, normal Less: OA-FO Cost of goods sold, actual Problem 5 – Darvin Company 1. Entries a. Materials Accounts payable

45,000 54,000 188,000 72,000

26,000 90,000 8,505 81,495

200,000 200,000

b. FOControl Accounts payable c. Payroll W/Taxes payable SSS Premium payable

35,000 35,000 210,000 18,520

8,400 Phil Health contributions payable PFC payable Accrued payroll

1,125 6,300 175,655

Page 4 Work in process Factory Overhead control Selling expense control Adm. expense control Payroll 210,000

140,000

d. Accrued payroll Cash

175,000 175,000

e. FO Control Selling expense control Adm. Expense control SSS prem. Payable MC payable PFC payable

30,000 25,000 15,000

14,200 2,375 1,350 10,500 1,125 6,300

f. Work in process FO Control Materials

185,000 35,000

g. Work in process FO Control

114,200

h. Finished goods Work in process

410,000

220,000

114,200

410,000

i. Accounts receivable Sales

539,000 539,000

Costs of goods sold Finished goods 385,000

385,000

j. Cash Accounts receivable

405,000 405,000

k. Accounts payable Cash

Page 5 2. Cost of goods sold statement Direct materials used Materials, January 1 Purchases Total available Less> Mat.- Jan. 31 Ind. Materials 185,000 Direct labor Factory overhead Total manufacturing costs

220,000 220,000

50,000 200,000 250,000 30,000 35,000 65,000 140,000 114,200 439,200

Work in process, January 1 Cost of goods put into process 457,200 Less: Work in process, January 31 Cost of goods manufactured 410,000 Finished goods – January 1 Total goods available for sale 445,000 Less: Finished goods – January 31 Cost of goods sold 3. Income Statement Sales Less: Cost of goods sold Gross profit Less: Operating expenses Selling Administrative 43,725 Net income 4 Balance sheet Cash 25,000 Accounts receivable 8,655 Finished goods 18,520 Work in process 18,900 Materials 2,250

18,000

47,200

35,000

60,000 385,000

539,000 385,000 154,000 27,375 16,350 110,275

110,000

Accounts payable

194,000

Accrued payroll 60,000

W/tax payable

47,200

SSS Prem. payable

30,000

Medicare Cont. payable PFC payable Common stock

12,600

200,000 _______ 441,200

Total

Retained earnings

155,275

441,200 Problem 6 1. Cost of goods manufactured Work in process, December 31 Cost of goods put into process Total manufacturing costs Work in process, January 1

800,000 87,000 887,000 ( 790,000) 97,000

Page 6 2. Cost of goods manufactured Finished goods, January 1 Total goods available for sale Cost of goods sold Finished goods, December 31 4.

Direct materials used Materials, December 31 Total available for sale Materials, January 1 Materials purchased

800,000 80,000 880,000 (750,000) 130,000 590,000 150,000 740,000 (100,000) 640,000

Problem 7 – Kyle Manufacturing Company 1. Direct materials used ( 300.000 x 75%) 225,000 Direct labor (350,000 x 60%) 210.000 Factory overhead – actual Indirect materials (300,000 x 25%) 75,000 Indirect labor (350,000 x 40%) 140,000 Heat, light, and water 120,000 Depreciation 75,000 Property taxes 65,000 Repairs and maintenance 40,000 515,000 Total manufacturing costs/cost of goods manufactured 950,000 2, 3. 4. 5

Unit cost = 950,000/125,000 = P7.60 per unit Prime cost = 225000 + 210,000 = P 435,000 Conversion cost = 210,000 + 515,000 = P 725,000 Period cost = 80,000 + 50,000 = P 130,000

Problem 8 - Norman Company 1, Materials, October 1 Purchases Materials, October 31 Direct materials used Direct labor Factory overhead (80,000 = 12,500 x 8.00) 6,40 Total manufacturing costs 2.

Total manufacturing costs Work in process, Oct. 1

48,000 112,000 (40,000) 120,000 80,000 100,000 300,000 300,000 24,000

3.

Work in process, Oct. 31 Cost of goods manufactured

( 16,000) 308,000

Cost of goods manufactured Finished goods, Oct. 1 Finished goods, Oct. 31 Cost of goods sold

308,000 72,000 ( 80,000) 300,000

Page 7 4. Sales Cost of goods sold Marketing and administrative expenses Net income

400,000 ( 300,000) ( 40,000) 60,000

Problem 9 – Janice Company 1, Sales (50,000/10%) Selling & administrative expenses Net income Cost of goods sold

500,000 ( 50,000) ( 50,000) 400,000

2.

Cost of goods sold Finished goods, March 31 Finished goods, March 1 Cost of goods manufactured

400,000 180,000 ( 120,000) 460,000

3.

Cost of goods manufactured Work in process, March 31 Work in process, March 1 Total manufacturing costs Factory overhead Direct labor (126,000/75%) Direct materials used 176,000 Materials, March 31 Purchases Materials, March 1

460.000 100,000 ( 90,000) 470,000 (126,000) (168,000)

20,000 (100,000) 96,000

Problem 10 - Selina Corporation 1. Cost of goods manufactured Work in process, December 31 Cost of goods put into process Cost of goods manufactured + WP, end = TMC + WP, beg 1700,000 + X = 1,800,000 + .80X X - .80X = 1,800,000 – 1,700,000

1,700,000 500,000 2,200,000

X

= =

2.

WP, Dec. 31 = 500,000

3.

Total manufacturing cost Factory overhead ( (1,800,000 x 25% ) Direct labor (450,000/72%) Direct materials used

100,00/.20 500,000

1,800,000 ( 450,000) ( 625,000) 725,000

Problem 11 - Kyra Alexis Corporation 1. Materials put into process Materials, Aug. 31 Materials, Aug. 1 Materials purchased Page 8 2. Materials put into process Direct labor ( 70,000 + 80,000) Factory overhead - A (70,000 x 120%) B ( 80,000 x 80%) Total manufacturing cost

120,000 75,000 ( 60,000) 135,000

120,000 150,000 84,000 64,000

148,000 418,000

3.

Total manufacturing cost Work in process, Aug. 1 Work in process, Aug. 31 Cost of goods manufactured

418,000 80,000 ( 64,000) 434,000

4.

Cost of goods manufactured Finished goods, Aug. 1 Finished goods, Aug. 31 Cost of goods sold

434,000 54,000 ( 60,000) 428,000

Multiple choice 1. 2. 3. 4. 5. 6.

A C B A D B

11. 12. 13. 14. 15. 16.

B C B C C D

7. D 8 C 9. B 10.B

17. 18. 19 20.

B B B B

21. B 22. D 23. A 24. B 25. 116,000 26. A (No. 5 should be 73% 27. D 28. A 29. A 30. B

Chapter 4 True or False 1. False 2. True 3. True 4. False 5. True

6. True 7. False 8. False 9. True 10.False

11. False 12. False 13. False 14. False 15. False

Matching 1. a 2. h 3. p 4. d 5. k

6. 7. 8. 9. 10.

Multiple choice – Theory 1, d 6. d 2. b 7. a 3. b 8. c 4. d 9. b 5. d 10. c

11. 12. 13. 14. 15.

16.True 17. False 18. False 19. True 20. True

21. True 22. False 23. False 24. False 25. True

16. 17. 18 19. 20.

21. 22. 23. 24. 25.

b g k, l, m i n

d d c b c

a c b b b

c b a c b

Problem 1 – Garcia Company 1 Journal entries 1. Materials Accounts payable 2.

3.

4.

5.

Work in process Factory overhead control Materials Materials Work in process FO Control Accounts payable Materials

28,000 28,000 22,000 3.000 25,000 800 500 300 1,000 1,000

Payroll 39,000 Withholding taxes payable 3,025 SSS Premiums payable 1,600 Phil Health contributions payable 375 Pag-ibig funds contributions payable 1,200 Accrued payroll 32,800

Page 2 Accrued payroll Cash

32,800

Work in process Factory overhead control Payroll

33,400 5,600

Factory Overhead Control SSS Premiums payable Phil Health cont. payable Pag-ibig cont. payable

3,575

FO Control Accum Depr. Prepaid ins. Accounts payable

15,000

9.

Work in process FO Applied

26,720 26,720

10.

Finished goods WP Job 401 Job 402

72,220 72,220

6.

7.

8

11.

12.

32,800

39,000

2,000 375 1,200

3,000 950 11,050

31,720 40,500

Accounts receivable Sales (31,720 x 140%)

44,408 44,408

Cost of goods sold FG

31,720 31,720

Cash

35,000 35,000

Accounts receivable

Direct materials 3,000 5,500 8,500

Direct materials 5,600 7,000

Job 401 Direct labor 2,500 10,400 12,900

Factory overhead 2,000 8,320 10,320

Job 402 Direct labor 3,000 12,500

Factory overhead 2,400 10,000

12,600

15,500

12,400

Page 3 Direct materials 9,500 ( 500) 3.

Job 403 Direct labor 10,500

Factory overhead 8,400

Cost of goods sold statement Direct materials used Materials, August 1 Purchases Less. Purchase returns Total available for use Less: Materials, Aug. 31 Ind. Materials Direct labor Factory overhead Total manufacturing costs Work in process, Aug. 1 Cost of goods put into process Less: Work in process, Aug. 31

22,000 28,000 1,000 24,800 2,700

27,000 49,000 27,500

Cost of goods manufactured Finished goods, Aug. 1 Total goods available for sale Less: Finished goods, Aug. 31 Cost of goods sold - normal Add. Under applied factory overhead Cost of goods sold

Problem 2 - Golden Shower Company 2. Journal entries a. Materials Accounts payable````` X 20,000 x 5.20 = 104,000 Y 24,000 x 3.75 = 90,000 Ind. Materials 35,040 b. Payroll Withholding taxes payable SSS premiums payable Phil Health cont. payable Pag-ibig funds cont. payable Accrued payroll

21,500 33,400 26.720 81,620 18,500 100.120 27,900 72,220 25,000 97,220 65,500 31,720 155 31,875

229,040 229,040

220,000 31,000 7,000 440 6,600 174,960

Accrued payroll Cash Page 4otal

174,960 174,960

c. Work in process Factory overhead control Marketing & Adm. Exp. Control Payroll

156,000 24,000 40,000 220,000

Factory overhead control Marketing & adm. Exp. Control SSS Premiums payable Phil Health contr. Payable Pag-ibig funds contribution payable SSS (5%) FOC (180,000) 9,000 M & A Exp.control 2,000 11,000

Phil Health (0,.25%) 360 80 440

14,760 3,280 11,000 440 6,600 Pag-ibig ( 3% ) 5,400 1,200 6,600

d. Work in process Factory overhead control Materials Job 101 (x) 4,000 x 5.00 (x) 16,000 x 5.20

Job 103 ( x) 2,000 x 5.20 (Y) 5,000 x 3.75

20,000 83,200 103,200

Cost of goods sold

14,760 3,280 18.040

216,350 15,040 231,390 Job 102 (Y) 8,000 x 3.00 (Y) 16,000 x 3.75

24,000 60,000 84,000

10,400 18,750 29,150

e. Work in process FO Applied Job 101 ...