Direct Labor Haour - Job A 2,500.

00
Add: Direct Labor Haour - Job B 3,100.00
Direct Labor Haour - Job C 4,200.00
Total Direct Labor Hour 9,800.00
Direct Labor Per Hour 8.50
Total Direct Labor Cost 83,300.00
Multiply: Manufacturing Overhead Applied Rate 1.20
Estimated Manufacturing Overhead Applied 99,960.00

Estimated Manufacturing Overhead Applied 99,960.00

Divide: Total Direct Labor Cost 83,300.00
Applied Overhead Hourly Rate 1.20

Direct Labor Hour - Job 101 3,100.00

Multiply: Direct Labor Per Hour 8.50
Direct Labor Cost - Job B-101 26,350.00
Multiply: Applied Overhead Hourly Rate 1.20
Applied Overhead - Job B-101 31,620.00

Compute the prime cost for the period

Direct Materials Used 96,000.00

Add: Total Direct Labor Cost 83,300.00
Prime Cost For The Period 179,300.00

Compute the balance of work in process inventory at the end of the period

Work In Process, Beg -

Add: Total Manufacturing Cost - Job A-101
Direct Materials Used Cost 36,000.00
Add: Direct Labor Cost 21,250.00
Manufacturing Overhead Applied 25,500.00 82,750.00
Add: Total Manufacturing Cost - Job B -101
Direct Materials Used Cost 30,000.00
Add: Direct Labor Cost 26,350.00
Manufacturing Overhead Applied 31,620.00 87,970.00
Work in Process, End 170,720.00
Direct Materials Used 2,000.00
Add: Direct Labor Cost 9,000.00
Manufacturing Overhead Applied 10,800.00 19,800.00
Total Cost, Job 400 21,800.00

Manufacturing Overhead Applied 7,200.00

Divide: Applied Overhead Rate 120%
Direct Labor Cost, Job 300 6,000.00
Raw Materials Ending 85,000
Add: Raw Materials Used 326,000
Less: Raw Materials Beginning 75,000
Raw Materials Purchases 336,000

Total Goods Available for Sales 826,000

Less: Finished Goods Inventory Beginning 90000
Cost of Goods Manufactured 736,000

Work in Process Beginning 80,000

Add: Total Factory Cost 686,000
Less: Work in Process Ending 30,000
Cost of Goods Manufactured 736,000

Let X = Direct Labor Cost

Let Y = Raw Materials Used
Let Z = Total factory Cost

Equation: Y + X + 0.60X = Z
X + 0.60X = Z - Y
1,60X = Z - Y
X = (Z - Y ) / 1.60

Total Factory Cost 686,000.00

Less: Raw Materials Used 326,000.00
Conversion Cost 360,000.00
Divide: Rate 1.60
Direct Labor Cost 225,000.00

Direct Labor Cost 225,000.00

Multiply: Factory Overhead Applied Rate 60%
Factory Overhead Applied Cost 135,000.00
Direct Labor Incurred 60,000.00
Multiply: Factory Overhead Rate 0.80
Applied Factory Overhead 48,000.00

Wip Beg 24,000.00

Add: Total Factory Cost
Direct materials used 70,000.00
Direct Labor Incurred 60,000.00
Applied Factory Overhead 48,000.00 178,000.00
Less: COGM 185,000.00
WIP Ending 17,000.00

WIP Ending 17,000.00

Less: Applied Factory Overhead 5,600.00
Direct Labor Incurred (5,600/80%) 7,000.00 12,600.00
Direct Materails Used 4,400.00
WIP BEG 2,400
Add:Total Manufacturing Cost
Direct Materials Used 10,000
Add: Direct Labor Incurred 8,000
Manufacturing Overhead 8,800 26,800
Less: WIP end 1,800
Cost of Goods Manufactured 27,400

Finished Goods Inventory Beg 1,200

Add: Cost of Goods Manufactured 27,400
Less: Finished Goods Inventory 1,000
Cost of Goods Sold 27,600
Let X = WIP END
Let Y = Total Manufacturing Cost
Z = Cost of Goods Manufactured

Equation: 0.75X + Y - X = Z
0.75X - X = Z - Y
-0.25X = Z - Y
X = (Z - Y ) / -0.25

Cost of Goods Manufactured 2,425,000.00

Less: Total Manufacturing Cost 2,500,000.00
Difference - 75,000.00
Divide: Rate - 0.25
WIP ENDING 300,000.00

WIP ENDING 300,000.00

Multiply: Rate 0.75
WIP BEG 225,000.00

Wip Beg 225,000.00

Add: TMC 2,500,000.00
Less: Wip End 300,000.00
COGM 2,425,000.00
Direct Materials Used 13,700.00
Add: Direct Labor Incurred 4,800.00
Manufacturing Overhead Applied 20,000.00 24,800.00
Total Manufacturing Cost (800*25) 38,500.00

Total Manufacturing Cost 38,500.00

Divide: No. of Units Produced 7,000.00
Cost of Goods Sold Per Unit 5.50
Budgeted Factory Overhead 1,044,000.00
Divide: Budgeted Direct Labor Hours 69,600.00
Overhead Hourly Rate 15.00

Actual Labor Hours 72,600.00

Multiply: Overhead Hourly Rate 15.00
Applied Factory Overhead 1,089,000.00

Actual Factory Overhead 1,037,400.00

Less: Applied Factory Overhead 1,089,000.00
(Overapplied) Underapplied Overhead - 51,600.00
 510 255
8.5 510
60 dl h 0.5
255
4.25 289
0.5
144.5
289
8.5
34
4.25
144.5

Direct Labor, Job 101 510

Divide: Direct Labor Hourly Rate 8.5
Direct Labor Hours 60
Divide: Manufacturing Overhead 255
Applied Overhead Hourly Rate 4.25

Direct Labor, Job 102 289

Divide: Direct Labor Hourly Rate 8.5
Direct Labor Hours 34
Multiply: Applied Overhead Hourly Rate 4.25
Manufacturing Overhead, Job G-102 144.5
A source document

Which of the following

would Not use a process
costing system
Homogeneous products
refer to

Which of the following cost

is usually NOT easily
traceable to finished units
of product

Which of the following

firms would make extensive
use of service costing

Product costing provides

useful cost information for
all the following except
Process costing would be
most applicable to

Volume-based rates are

appropriate in situations
where the incurrence of
factory overhead

The _______ nature of

services leads to a
requirement of
standardized system to
handle repeat customers

Which of the following

firms would make extensive
use of a job-order costing

In a job order costing

system, the peso amount of
the entry that debits
Finished Goods Inventory
and Credits Works in
Process is the sum of the
costs charged to all jobs
The key distinction
between job costing and
process costing is:

Which cost accounting

processes would be most
appropriate for firms that
mass-produce large
quantities of similar
homogeneous products

Intagibility refers to

Which of the following can

produce unit product cost
that fluctuate significantly

Which of the following

products would not use job
- order costing

If a firm is following the

cost leadership strategy,
and overhead accounts are
complex, then the:
provides transaction data that can be recorded in a database

Satellites

products similar in nature

manufacturing overhead

law firm (pure service)

Identifying and hiring competent managers (HR DEPT WORK)

an electronics producer (high volume homogeneous products)

is related to a single, common cost driver

perishable

dental and medical services (pure service)

Completed during the period (Work in process inventory that was completed will be
transferred to finished goods inentory results to debit in FIG credit in WIP
The accumulation of costs to assign to cost objects.

Process costing
nonphysical nature of services opposed to products (Means d nahahawakan and
nakikita)

Actual Costing System (Some actual cost are cahnging significantly thus affceting the unit
cost - will also fluctuate since unit cost are based on total cost of production/ no. of
units)

Chemicals (Since same ingredients are required per chemical, characterized by

volominous production)

Traditional volume-based job costing will not usually provide the needed cost accuracy.