34.

(c)
Manufacturing cost
Less: Direct labor
Applied factory overhead (P100 x 600 hours)
(1)
Direct materials used
Manufacturing cost
WIP, Dec. 1: Direct materials (3,000 x P2.40)
Direct labor (3,000 x P.80)
Applied FO (48 hrs x P100)
Total
WIP, Dec. 31: DM (2,000 x P2.40)
DL (2,000 x P.80)
Applied FO (32 hrs. x P100)
(2)
Cost of goods manufactured
Finished goods, Dec. 1
Goods available for sale
Finished goods, Dec. 31:
DM
DL
Applied FO (P100 x 60 hrs)
(3)
Cost of goods sold

P180,000
P30,000
60,000

90,000
P90,000
P180,000

P7,200
2,400
4,800

14,400
194,400

P4,800
1,600
3,200

9,600
P184,800
12,000
196,800

P5,000
3,000
6,000

14,000
P182,800

35.(d)
(1)Direct materials used
P26,000
Direct labor
30,000
Applied FO:
Molding Dept. (P2.70 x 2,000 hours) P5,400
Decorating Dept. (35% x P12,000)
4,200 9,600
Estimated cost to produce
P65,600
(2)

Bid Price

(P65,600 x 145% )

P95,120

36.(b)
Job 115 Job 116 Job 117 Job 118
WIP, beg.
P81,200
Current cost:
DM
P39,000 P53,000 P47,000
DL
26,000 45,000 47,000 16,000
AFO
31,200 54,000 56,400 19,200
Total cost
P138,400 P138,000 P156,400 P82,200
(1)

Cost of goods manufactured:

(2)

WIP, Aug. 31 (Job 118)

37.

(c)

Job 115
Job 116
Job 117
Total

Total
P139,000
134,000
160,800
P515,000
P128,400
138,000
156,400
P432,800
P 82,200

(1)P1,280,000 / P1,600,000 = 80%

(2)WIP, end
Direct Labor
Applied FO (.80 x P100,000)
Direct materials

P280,000
(100,000)
( 80,000)
P100,000

38.(a)
(1)Accounts payable, March 31
Payment of accounts payable (for materials)
Accounts payable, March 1
Materials purchased

P 20,000
70,000
(12,000)
P 78,000

(2)This can be computed by working backward from cost of goods sold as follows:
Costs of goods sold
Finished goods inventory, March 31
Finished goods inventory, March 1
Cost of goods manufactured
Work in process, March 31 (P12,000+P24,000+P48,000)
Work in process, March 1
Manufacturing cost
Applied factory overhead (200% x P160,000)
Direct labor
Direct materials used
Materials inventory, March 31
Purchases (1)
Materials inventory, March 1

P 600,000
120,000
(100,000)
620,000
84,000
(60,000)
644,000
(320,000)
(160,000)
164,000
30,000
(78,000)
P 116,000

41.(c)
Work in process, May 1 :
Job 769
P9,000
Job 772
2,900
Current cost:
Direct materials
P26,000
Direct labor
20,000
Applied factory overhead (150% x P20,000)30,000
Total cost of goods placed in process
Less: Work in process, May 31 (Job 779):
Direct materials
P2,800
Direct labor
1,800
Applied factory overhead (150% x P1,800) 2,700
Cost of goods manufactured
Finished goods inventory, May 31 (job 776)
Cost of goods sold at normal

P11,900

76,000
87,900

7,300
P80,600
4,000
P76,600

42.(d)
Work in process, beginning
P40,000
Current costs:
Direct materials
P98,000
Direct labor
50,000
Applied factory overhead (P30 x 2,000 hours)60,000 208,000
Total
248,000
Manufacturing cost
210,000
Work in process, end
P38,000
45.(a)
Direct materials used
Direct labor
Applied factory overhead :
Job X (P5,000 x 200%*)
P10,000
Job Y (P4,000 x 200%*)
8,000
Job Z (P2,500 x 200%*)
5,000
Total manufacturing cost charged to Work in Process

P45,000 (cr)
11,500 (cr)

23,000 (cr)
P79,500 (dr)

* P300,000 / P150,000 = 200%

46.(d)
Direct materials used:
Materials inventory, June 1
P 97,200
Purchases
120,000
Available for use
217,200
Materials inventory, June 30
102,000
Direct labor (19,800 hours x 5)
Applied factory overhead (19,800 hours x P2.50)
Manufacturing cost
Work in process, June 1
Total
Work in process, June 30
Cost of goods manufactured

P115,200
99,000
49,500
263,700 (1)
21,420
285,120
48,420
P263,700 (2)

47.(a)
Direct materials used:
Materials inventory, 11/1
Purchases
Available for use
Materials inventory, 11/30
Direct labor (25,000 hours x P4)
Applied factory overhead (25,000 hours x P3)
Factory cost
Work in process inventory, 11/1
Total
Work in process inventory, 11/30:
Direct materials
Direct labor (5,000 x P4)
Applied factory overhead (5,000 x P3)
Cost of goods manufactured

P 10,000
50,000
60,000
25,000 P35,000
100,000
75,000
210,000
50,000
260,000
P 5,000
20,000
15,000

40,000 (1)
P220,000 (2)

54.(a)
Work in process, January 1
P20,000
Manufacturing cost:
Direct materials used
P380,000
Direct labor
360,000
Applied factory overhead
480,000 1,220,000
Total
1,240,000
Cost of goods manufactured (debit to finished goods)
940,000
Work in process, December 31
P 300,000
55.(b)
Cost of goods manufactured
P940,000
Finished goods, January 1
10,000
Goods available for sale
950,000
Finished goods, December 31
50,000
Cost of goods sold before adjustment for over/under applied overhead P900,000
56.(b)
Actual manufacturing overhead P540,000
Applied manufacturing overhead 480,000
Under-applied overhead
P 60,000

57.(a)
Sales
P1,090,000
Cost of goods sold at actual (P900,000 + P60,000)
960,000
Gross profit
,000
Manufacturing expenses
140,000
Operating income (loss)
P( 10,000)
58.(c)
Sales
P1,090,000
Cost of goods sold
943,200
Gross profit
146,800
Manufacturing overhead
140,000
Operating income
P6,800
Prorating of under-applied overhead:
Amount
Ratio Pro-ration
Work in process
P300,000
24%
P14,400
Finished goods
50,000
4%
2,400
Cost of goods sold
900,000
72%
43,200
Total
P1,250,000
100%
P60,000

130