Problem 1

1. A
2. A
3. A, C
4. A
5. A
6. B
7. A, B
8. A, C
9. A
10. A
11. A
12. C
13. A
14. A
15. C
 Marvin Manufacturing Company
Cost of Good Sold Statement
For the year ended December 31, 2019

Direct Materials used:

Raw Materials Inventory, Jan. 1 P175,000
Purchases 250,000
Total Materials available for use P425,000
Less: Raw Materials Inventory, Dec. 31 125,000 P300,000
Direct Labor 270,000
Factory Overhead 324,000
Total manufacturing cost/Cost of goods manufactured P894,000
Add: Work in Process Inventory, Jan. 1 90,000
Total cost of goods in process P984,000
Less: Work in Process Inventory, Dec. 31 120,000
Total cost of goods manufactured P864,000
Add: Finished Goods Inventory, Jan. 1 100,000
Total finished goods available for sale P964,000
Less: Finished Goods Inventory, Dec. 31 80,000
Cost of Goods Manufactured and Sold P884,000
 Donna Company
Cost of Good Sold Statement
For the year ended May 31, 2019

Direct Materials used:

Materials, May 1 P124,000
Purchases 107,800
Total Materials available for use P231,800
Less: Materials, May 31 115,000 P116,800
Direct Labor 160,000
Factory Overhead 240,000
Total manufacturing cost/Cost of goods manufactured P516,800
Add: Work in Process Inventory, May 1 129,200
Total cost of goods in process P646,000
Less: Work in Process Inventory, May 31 124,000
Total cost of goods manufactured P522,000
Add: Finished Goods Inventory, May 1 150,000
Total finished goods available for sale P672,00
Less: Finished Goods Inventory, May 31 122,000
Cost of Goods Manufactured and Sold P550,000
Date Particulars Debit
a) Materials P180,000
Accounts Payable
To record purchase of direct materials on account
b) Payroll 80,000
Withholding Taxes payable
SSS Premium Payable
Phil Health Contributions Payable
Pag-ibig Funds Contribution Payable
Accrued Payroll
To record factory payroll

Work in process 60,000

Factory overhead control 20,000
Payroll
To record the compensation paid to employees
c) Materials 20,000
Accounts Payable
To record purchase of indirect materials
d) Factory overhead control 5,595
SSS Premium Payable
Phil Health Contributions Payable
Pag-ibig Funds Contribution Payable
To record employer payroll tax expense
e) Work in process 120,000
Factory overhead control 10,000
Materials
To record materials issued
f) Accounts Payable 5,000
Materials
To record returned defective materials
g) Accounts Payable 83,895
Accrued Payroll 64,405
Cash
To record payment of accounts payable and
accrued payroll
h) Factory overhead control 24,900
Miscellaneous accounts
To record sundry factory expenses as liabilities
i) Work in process 72,000
Factory overhead applied (60,000 x 120%)
To record charge of factor overhead to
production
j) Finished Goods 180,000
Work in process
To record completed goods to finished goods
k) Accounts Receivable 210,000
Sales
Cost of good sold 140,000
Finished goods
 Credit Ram Company
Cost of Good Sold Statement
P180,000 For the year ended October 31, 2019

Direct Materials used:

11,200 Purchases
2,400 Less: Purchase Return
375 Total available for use
1,620 Less: Indirect Materials
64,405 Materials
Direct Labor
Factory overhead
Total manufacturing cost/Cost of goods manufactured
Less: Work in process, Oct. 31
80,000 Total cost of goods manufactured
Less: Finished Goods Inventory, Oct. 31
Cost of Goods Manufactured and Sold - normal
20,000 Less: Over-applied factory overhead
Cost of Goods Sold - Actual

3,600 Actual factory overhead

375 Less: Applied factory overhead
1,620 Over-applied factory overhead

130,000

5,000

212,705

24,900

72,000
180,000

210,000

140,000
 Ram Company
f Good Sold Statement
ar ended October 31, 2019

P200,000
5,000
195,000
P10,000
65,000 75,000 P120,000
60,000
72,000
P252,000
72,000
P180,000
40,000
P140,000
11,505
P128,495

P60,495
72,000
(11,505)