COST-ACCOUNTING-CYCLE.pptx

COST-ACCOUNTING-CYCLE.pptx

• 1.
  Maria Cristina P.Obeso, CPA, MBA
• 2.
   MATERIALS INVENTORY - made up of the balances of materials and supplies on hand  WORK IN PROCESS INVENTORY - cost of goods that were started in process but is not yet completed FINISHED GOODS INVENTORY - cost of goods already completed but not yet sold
• 3.
   DIRECT MATERIALS DIRECT LABOR  FACTORY OVERHEAD
• 4.
  DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD WORK IN PROCESS FINISHED GOODS COST OF GOODSSOLD
• 9.
  ◦ Materials arepurchased on account at a cost of 50,000 Materials 50,000  Accounts Payable 50,000
• 10.
   Direct materialscosting P40,000 and indirect materials costing P1,900 are issued to the factory  Work in Process 40,000  Factory overhead control 1,900  Materials 41,900
• 11.
   Total payrollamounted to P36,000 consisting of P20,000 earned by laborers , P7,000 for factory supervision, P9,000 for sales and administrative employees  Payroll 36,000  Accrued Payroll 36,000  Accrued Payroll 36,000  Cash 36,000
• 12.
   Recording thedistribution or classification of the payroll  Work in process 20,000  Factory overhead control 7,000  Selling and administrative expenses control 9,000  Payroll 36,000
• 13.
   Depreciation expensefor the building is P3,750. The office occupies 1/10 of the building and the factory occupies 9/10 of the building  Factory overhead control 3,375  Selling and administrative expenses control 375  Accumulated depr- building 3,750
• 14.
   Depreciation formachinery and equiment used in the factory is 2,500  Factory overhead control 2,500  Accum. Depr. – machinery and equipment 2,500
• 15.
   The costof heat, light and power for the month was P3,000. 1/10 is allocated to the office and 9/10 to the factory  Factory overhead control 2,700  Selling and administrative expenses control 300  Accounts payable 3,000
• 16.
   Miscellaneous expensesfor telephone, office supplies, travel and rental of office furniture and equipment totaled  Selling and administrative expenses control 1,500  Accounts payable 1,500
• 17.
   Factory overheadis charged to production at 85% of direct labor cost  Work in process 17,000  Factory overhead applied 17,000
• 18.
   Assuming allgoods started in process have been finished  Finished goods 77,000  Work in process 77,000  Direct materials 40,000  Direct labor 20,000  Factory overhead 17,000  77,000
• 19.
   All thefinished goods were sold with a mark- up of 10,000 pesos on credit  Accounts receivable 87,000  Sales 87,000  Cost of goods sold 77,000  Finished goods 77,000
• 20.
   All theaccounts receivable were collected in full  Cash 87,000 ◦ Accounts receivable 87,000
• 21.
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