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Assignment Cost-Answer Key PDF

The JaBa Company's general ledger contained finished goods of P15,000, work in process of P30,000, and materials of P25,000 on January 1. During January, various transactions occurred including purchasing materials, issuing steel, paying payroll, and completing production. Journal entries were provided to record each transaction. Cost of goods sold for January was calculated to be P60,000. During April, Jennie Manufacturing had two jobs in production. Various transactions were recorded including purchasing materials, requisitioning materials for each job, payroll costs, overhead costs, and completing one job. The cost of each job and ending inventory account balances were calculated. For one of Jisoo Company's material

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2K views4 pages

Assignment Cost-Answer Key PDF

The JaBa Company's general ledger contained finished goods of P15,000, work in process of P30,000, and materials of P25,000 on January 1. During January, various transactions occurred including purchasing materials, issuing steel, paying payroll, and completing production. Journal entries were provided to record each transaction. Cost of goods sold for January was calculated to be P60,000. During April, Jennie Manufacturing had two jobs in production. Various transactions were recorded including purchasing materials, requisitioning materials for each job, payroll costs, overhead costs, and completing one job. The cost of each job and ending inventory account balances were calculated. For one of Jisoo Company's material

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Sheyyylaaa Baby
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Problem 1

The general ledger of the JaBa Company contained the following accounts, among others, on
Jan 1: Finished Goods, P 15,000; Work in Process, P30,000; Materials,
P 25,000. During January the following transactions were completed:

a. Materials were purchased on account at a cost of P 13,500


b. Steel in the amount of P 17,500 was issued from factory
c. Requisitions for indirect materials and supplies amounted to P 1,800
d. The total payroll for January amounted to P 27,000, including marketing salaries of P
5,000 and administrative salaries of P 3,000. Job time tickets show that P 17,000 of the
labor cost was direct labor. A payroll clearing accounts used.
e. Various indirect manufacturing costs totaling P 2,508 were paid in cash.
f. Various indirect manufacturing costs totaling P 8,500 were incurred on account.
g. Total factory overhead is charged to Work in Process
h. Cost of production completed in January totaled P 60,100 and finished goods on
January totaled P 15,100.
i. Customers to whom shipments were made during the month were billed for P 75,000.
Required: Prepare the necessary journal entries for each transactions and compute for the cost
of goods sold.

a. Materials 13,500
Accounts Payable 13,500

b. Work in process - DM 17,500


Materials 17,500

c. Factory overhead - IM 1,800


Materials 1,800

d. Payroll 27,000
Accrued Payroll 27,000

Work in process - DL 17,000


Factory overhead - IL 2,000
Selling expenses- salaries 5,000
Administrative expense - salaries 3,000
Payroll 27,000

e. Factory overhead - various 2,508


Cash 2,508

f. Factory overhead - various 8,500


Accounts Payable 8,500
g. Work in process- FOH 14,808
Factory overhead 14,808

FOH- indirect labor 2,000


FOH - indirect materials 1,800
FOH- various 2,508
FOH- various 8,500

h. Finished Goods 60,100


Work in process 60,100

i. Accounts Receivable 75,000


Sales 75,000

Cost of Goods Sold 60,000


Finished Goods 60,000

Finished Goods, beg 15,000


Cost of Production 60,100
Finished Goods, end (15,100)
Cost of Goods Sold 60,000

Problem 2

During the month of April, Jennie Manufacturing Company had two jobs under production, Job
234 and 567. The following transactions occurred:

a. Purchased materials for P 100,000


b. Materials requisitioned were P 25,000 for Job 234 and P 59,000 for Job 567.
c. Factory payroll for the month of April was P 80,000, of which P 35,000 was directly
allocated to Job 234 and P 30,000 to Job 567. The remainder represented general
factory supervision.
d. Materials returned to the stockroom from Job 234, P 2,500.
e. Supplies purchased and used amounted to P 3,000. These were not specifically traced
to either of the two jobs
f. Various overhead costs, including power, maintenance and insurance, amounted to P
34,000 during the month.
g. Depreciation on factory building and equipment for the month was P 6,000
h. Overhead is charged to jobs at the rate of 100% of direct labor cost.
i. Job 234 was completed and delivered to the customer, but Job 567 was still in process
at the end of the month.
Required:
● Compute the cost of Job 234 and Job 567
● Assuming that no other jobs were in process, and that no other materials were on hand
at the start of the month, what should be the end of the month balances of:
a.Materials account
b.Work in Process account
c. Cost of goods sold account

Cost of Jobs: Job 234 Job 567

Direct materials used P 22,500 P 59,000


Direct labor 35,000 30,000
Applied factory overhead ​ 35,000 30,000
Total factory cost P 92,500 P119,000

2:
(a) Purchases of materials P100,000
Materials requisitioned (84,000)
Materials returned to storeroom​ 2,500
Materials account balance 18,500

(b)
Materials requisitioned P 84,000
Direct labor 65,000
Applied factory overhead 65,000
Materials returned for Job (2,500)
Completed job 234 (92,500)
Work in process, end P119,000

c) Cost of goods sold (Job 234) P 92,500

Problem 3
Jisoo Company has developed the following data to assist in controlling one of its material
inventory items:

Economic order quantity 1,000 liters


Average daily use 100 liters
Maximum daily use 120 liters
Working days per year 250 days
Safety stock 140 liters
Cost of carrying inventory P 1.00 per liter per year
Lead time 7 working days

Required
● What is the reorder point
● what is the average inventory
● what is the maximum inventory assuming normal lead time and usage
● What is the cost of placing one order

reorder point
140 + (100 x 7 days) = 840
average inventory
140 + (1000/2) = 640
maximum inventory
140 + 1,000 = 1,140
Cost of order
1,000,000 = 50,000 x CO
CO = 20

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