POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Manufacturing Operations - Reports

I.

The following information was taken from ABC Mfg accounting records for the year
Cost of goods sold, 220% of materials used (176,000)
Factory overhead, 10% less of the labor cost (36,000)
Finished Goods inventory at the end, P14,000 which is 70% of the beginning. (20,000)
Labor cost, 40,000
Materials used, 200% of labor cost (80,000)
Work in process inventory at the end is 75% of the beginning.
Compute the following:
1. Work in process inventory, beginning (96,000)
2. Work in process inventory, end (72,000)
3. Goods available for sale (190,000)

SOLUTION
Finished Goods, beginning
20,000
Cost of Goods manufactured
180,000
Cost of goods available for sale
190,000
Less: Finished Goods, ending
14,000
Cost of Goods Sold
176,000
------------------------------------------------------------------------------------------------------------------------------Materials Used
80,000
Labor Cost
40,000
Factory Overhead
36,000
Total Manufacturing Cost
156,000
Add: Work in Process Inventory, beginning
96,000
Total:
252,000
Less: Work in Process Inventory, Ending
72,000
Cost of Goods Manufactured
180,000

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Manufacturing Operations - Reports
II.

The financial statements of DEF Company include the following items

Marketing costs, P90,000

Direct labor costs, P115,000

Administrative costs, P55,000

Direct Materials used, P95,000

Fixed Factory overhead costs, P65,000

Variable Factory overhead costs, P35,000
Interest expense, P20,000
Income tax expense, P40,000
Compute the total
4. Prime costs
Direct Materials Used
Direct Labor Costs
Prime costs

P 95, 000
P 115, 000
P 210, 000

5. Conversion costs
Fixed Factory Overhead Costs
Variable Factory Overhead Costs
Direct Labor Costs
Conversion costs

P 65, 000
P 35, 000
P 115, 000
P215,000

6. Inventorial costs
Fixed Factory Overhead Costs
Variable Factory Overhead Costs
Direct Materials Used
Direct Labor Costs
Inventorial costs

P 65, 000
P 35, 000
P 95, 000
P 115, 000
P310,000

7. Period costs
Interest Expense
Income Tax Expense
Period costs

P 20, 000
P 40, 000
P60,000

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Manufacturing Operations - Reports
III.

You are given the following data on the operation of GHI Mfg
Raw materials used, P129,000
Factory overhead, P80,000
Work in process ending inventory,P42,000 which is higher than beginning by P7,000
Finished goods beginning inventory, P18,000 which lower by 10,000 compared to the end
Cost per unit is P20 with 12,500 units sold.
8. Compute the cost of labor (58, 000)
9. Total manufacturing cost (267, 000)
10. Goods available for sale. (278, 000)

Cost of Goods Sold

Finished Goods Inventory, Beginning
Cost of Goods Manufactured
Cost of Goods Available for Sale
Less: Finished Goods Invntory, Ending
Cost of Goods Sold

Direct Materials Used

Direct Labor
Factory Overhead
Total Manufacturing Cost
Add:Work In Process Inventory
Total
Less: Work In Process Inventory
Cost of Goods Manufactured
End.

P 18, 000
P 260, 000
P 278, 000
P 28, 000
P 250, 000

P129, 000
P 58, 000
P 80, 000
P 267, 000
P 35, 000
P 302, 000
P42, 000
P 260, 000