PROBLEM 1 (15 POINTS)

For the month just ended, the following data were generated by Malabo Company:

Physical Units:
Work in process, beginning inventory
Direct materials, chemicals (? Complete)
Direct materials, cans (0% complete)
Direct Labor (25% complete)
Overhead (25% complete)
Started during the month
Transferred to Shipping Department during the month
Work in process, ending inventory:
Direct materials, chemicals (100% Complete)
Direct materials, cans (? complete)
Direct Labor (80% complete)
Overhead (80% complete)

Costs for the month:

Work in process, beginning inventory:
Direct materials, chemicals
Direct Labor (P100 per hour)
Overhead
This month's cost added:
Direct materials, chemicals
Direct materials, cans
Direct Labor (P100 per hour)
Overhead

The company manufacture high quality paints. Production begins with the blending of various chemicals,
which are added at the beginning of the process and ends with canning of the paint. Canning occurs when the mixture reache
The gallon cans are then transferred to the Shipping Department for crating and shipment. Direct labor and overhead are add
Overhead is allocated on the basis of direct labor hours at the rate of P30 per hour.

REQUIRED: Present the cost of production report of Malabo Company using FIFO METHOD
 4,000 gallons

21,000 gallons
20,000 gallons

456,000.00
62,500.00
18,750.00

2,284,000.00
70,000.00
350,000.00
105,000.00

blending of various chemicals,

ng occurs when the mixture reaches the 90% stage of completion.
Direct labor and overhead are added continuously throughout the process.
PROBLEM 2 (28 POINTS)

* PROVIDE THE ANSWERS USING BOTH FIFO AND WEIGHTED AVERAGE METHOD. Show your computations.

Department A of Forbidden Company furnishes you with the following data:

Started in process 20,000 units

Completed and transferred to Department B 15,000 units
In process, end (3/5 complete) 5,000 units

1 If materials were applied 100% at the start of the process, what is the equivalent production for materials?
2 What is the equivalent production for labor and overhead if these were applied uniformly throughout the pro

Referring to Department A of Forbidden Company, what if the application of materials were made as follows:
40% when the process is started
30% when the process reached 3/4 completion
balance at the end of the process

3 What is the equivalent production for materials?

4 Should the materials be applied 100% at the end of the process, what is the equivalent production?

Assume further that the following costs were incured in Department A during the month:
Materials 8,500.00
Labor 5,400.00
Overhead 3,600.00

5 How much is the total unit cost if the number 3 application of materials and uniform for conversion cost is ap
6 How much is the cost of completion of the 15000 units?
7 How much is the cost charged to the 5000 units in process end?
ur computations.

valent production for materials?

plied uniformly throughout the process?

made as follows:

e equivalent production?

d uniform for conversion cost is applied?

 PROBLEM 3 (15 POINTS)

Department 2 of Irene Manufacturing Company received 22400 units from Department 1 during February with a carried costo
As compared to last January, the unit cost from Department 1 decreased by .50

Department 2 has a total processing period of 14 days and the material application are described as follows:
1/5 of the material requirement is applied on the 3rd day of processing
30% when the process reaches 50% completion
40% on the 12th day and the remainder on the last day

Conversion costs are applied uniformly throughout the process.

The production data of Department 2 for the month of February show:

Work in process, beginning (2/5 completed) 1,000 units
Work in process, ending (60% completed) 4,000 units

Cost incurred in Department 2 for February

Direct Materials 17,344.00
Direct Labor 12,816.00
Factory Overhead 8,544.00

Last month's unit cost in Department 2 showed:

Direct Materials 0.50
Direct Labor 0.40
Factory Overhead 0.60

REQUIRED:
Prepare the cost of production report for Department 2 for the month of February using Average method
g February with a carried costof 33600.

d as follows:

bruary using Average method

 Product
X
PROBLEM 4 (15 POINTS) Y
Z
A company manufactures three products in a joint production process.
The three products X, Y and Z. No by- product is produced in the process.
Additional information follows:
Product
X Y Z Total
Units Produced 10,000 6,000 4,000 20,000
Joint Costs 99,000.00 A B 180,000.00
Sales Value at split- off C D 50,000.00 250,000.00
Add'l cost to process further 16,000.00 12,000.00 6,000.00 34,000.00
Sales Value if processed fur 160,000.00 80,000.00 60,000.00 300,000.00

Required: Fill in the missing information as indicated by the letters.

Use the most appropriate allocation method
Show your computations.
Units Produced Market Value at split-off Total Ratio Joint Cost
10,000 #DIV/0! 137,500.00 0.55 99,000.00
6,000 10.42 62,500.00 0.25 45,000.00
4,000 12.5 50,000.00 0.20 36,000.00
20,000 250,000.00 180,000.00
 PROBLEM 5 (18 POINTS)

The Makati Chocolate Corporation produces a product known as Choco from which by- product results. This by-poduct can be
The manufacturing costs of the main product and by- product up to the point of separation for the three month period ending

Materials
Labor
Overhead

The units processed were 20, 000 pounds of the main product and 2,000 pounds of the by- product.
During the period, 18,000 pounds of the main product were sold at P10.00 a pound and 1,000 pounds of the by- product.
Selling and administrative expenses applicable to the main product is 30% of sales.

Required:
Present the income statement of Makati Chocolate Corporation using the six methods of accounting for by- products.

By-Product
Sales Method Production Method
MAKATI CHOCOLATE MAKATI CHOCOLATE
Sales 1,000.00 Units produced 3,825.00
Disposal Cost 1,575.00
Net Income 1,500.00 2,250.00

Income Statement
Original 1 2 3
Sales 192,000.00 192,000.00 192,000.00 192,000.00
By- product 1,500.00
Total Sales 192,000.00 193,500.00 192,000.00 192,000.00

Cost of Sales
Product Costs 120,000.00 120,000.00 120,000.00 120,000.00
By- product

Ending Inventor 24,000.00 24,000.00 24,000.00 24,000.00

Cost of Sales, Gr 96,000.00 96,000.00 96,000.00 96,000.00
By- product 1,500.00
Cost of Sales, Ne 96,000.00 94,500.00

Gross Profit 96,000.00 97,500.00 96,000.00 97,500.00

Selling and Adm 18,000.00 18,000.00 18,000.00 18,000.00
Net Operating I 78,000.00 79,500.00 78,000.00 79,500.00

By- product 1,500.00

Net Income 78,000.00 79,500.00 79,500.00 79,500.00
- product results. This by-poduct can be sold at P1.00 per pound.
ation for the three month period ending March 31, 2021 follows:

30,000.00
17,400.00
17,400.00

e by- product.
d 1,000 pounds of the by- product.

ds of accounting for by- products.

CHOCOLATE

4 5 6
192,000.00 192,000.00 192,000.00 Production 7.85
Sales Meth 8
192,000.00 192,000.00 192,000.00

120,000.00 120,000.00 120,000.00

1,500.00 2,250.00 2,250.00 Beg. Inv. 0
Produced 15000
24,000.00 24,000.00 23,550.00 Availble G 15000
94,500.00 93,750.00 94,200.00 End. Inv. 3000
COGS 12000
94,500.00 93,750.00 94,200.00

97,500.00 98,250.00 97,800.00

18,000.00 18,000.00 18,000.00
79,500.00 80,250.00 79,800.00

79,500.00 80,250.00 79,800.00

PROBLEM 6 (9 POINTS)

On your presentation for 2020 financial statements of ABCD Private Tutorial Services, identify the following:

1 Cash and cash equivalents at the end of the fiscal year

2 Net income after tax
3 Gross revenue/ receipts
4 Property & equipment, net
5 Total Liabilities
6 Provision for income tax
7 (Increase) decrease on receivables
8 Net increase (decrease) on cash & cash equivalents
9 Middle Name of your subject teacher
 1 2 3 4 5 6
TOTAL POINTS 15 28 15 15 18 9 100