Sample Problems With Answer
Sample Problems With Answer
Required:
1 Compute the cost of Job 234 and 567.
Assuming that no other jobs were in process, and that no other materials were on hand at the start of the m
2 the end of the month balances of:
a. Materials account.
b. Work in Process account.
c. Cost of Goods Sold account.
EB 8,500 EB 0 EB
EB 0 EB 119,000 EB 102,500
Finished Goods
i. 102,500
COGS
P100,000
(94,000)
2,500
P 8,500
P 94,000
65,000
65,000
(2,500)
(102,500)
P119,000
P102,500
P119,000
Problem 2:
Roman Company uses normal costing. Its job costing system has two direct-cost categories (direct
materials and direct labor) and one indirect cost category (manufacturing overhead). The following
information is obtained from the company's records for 2021:
Questions:
1. What is the total direct labor costs in 2021?
2. What is the total cost of direct materials used in 2021?
3. What is the peso amount of work in process inventory on December 31, 2021?
Answers:
1. Total direct labor costs
Applied manufacturing overhead P3,600,000
Divided by: Application rate 200%
Direct Labor costs P1,800,000
Note:
To understand the solution, always remember the statement of cost of goods sold: