1

CHAPTER 1

Multiple Choice Questions- Theoretical

1. a 6. b 11. d 16. a 21. b 26. c

2. c 7. c 12. a 17. b 22. c 27. a
3. a 8. d 13. b 18. d 23. c 28. c
4. c 9. a 14. d 19. b 24. d 29. c
5. d 10. b 15. a 20. a 25. c 30. d

Multiple Choice Questions - Computational

1. ( b)

Direct Materials P47,000

Direct Labor 28,000
Factory Oer!ead"
De#reciatio$ % Factory e&'i#(e$t P1,000
Factory re$t 2,000
Factory i$s'ra$ce 500
Materials !a$dli$) 1,500 5,000
Manufacturin cost P!"#"""

$. (a)

Decrease i$ *i$is!ed )oods i$e$tory P35,000

+dd" a- (aterials #'rc!ased P430,000
Direct labor #ayroll 200,000
Factory oer!ead 300,000 930,000
otal P965,000
Less" /$crease i$ ra- (aterials i$e$tory 15,000
Cost of oo%s sol% P&'"#"""

. ( %)

irect labor- *aes of machine operations P$""#"""

irect materials+
Metal -ire P500,000
Plastic coati$) 380,000 P!!"#"""

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,. (c)

Materials i$e$tory, be)i$$i$) P 32,400

P'rc!ases 40,000
Materials aailable *or 'se 72,400
Materials i$e$tory, e$di$) 34,000
Materials 'sed 38,400
Direct labor 33,000
Factory oer!ead 17,160
Ma$'*act'ri$) cost 88,560
or i$ #rocess i$e$tory, be)i$$i$) 7,200
otal 95,760
or i$ #rocess i$e$tory, e$di$) 16,240
Cost of oo%s manufacture% P &#'$"

'. ( %)
Materials i$e$tory,
i$e$tory, a$. 1 P 17,000
P'rc!ases 240,000
Frei)!t i$ 3,000
Materials aailable *or 'se 260,000
Materials i$e$tory, Dec. 31 19,000
Materials 'sed 241,000
Direct labor 320,000
Factory oer!ead 188,000
actor/ cost ,&#""" (1)
or i$ #rocess i$e$tory, a$. 1 12,000
otal 761,000
or i$ #rocess i$e$tory, Dec. 31 13,000
ost o* )oods (a$'*act'red 748,000
Fi$is!ed )oods i$e$tory, a$. 1 62,000
oods aailable *or sale 810,000
Fi$is!ed )oods i$e$tory, Dec. 31 46,000
Cost of oo%s sol% P0,#""" ($)

0. (b) ol2e up3ar% from Cost of 4oo%s ol%.

Materials i$e$tory, a$. 1 P 16,000
Purchases (s5uee6e) $#"""
Materials aailable *or 'se 88,000
Materials i$e$tory, Dec. 31 17,000
Materials 'sed 71,000
Direct labor 30,000
Factory oer!ead 20,000
Factory cost 121,000
or i$ #rocess i$e$tory, a$. 1 16,000
otal 137,000
or i$ #rocess i$e$tory, Dec. 31 30,000
ost o* )oods (a$'*act'red 107,000
Fi$is!ed )oods i$e$tory, a$ 1 14,000
oods aailable *or sale 121,000
Fi$is!ed )oods i$e$tory, Dec. 31 20,400
ost o* )oods sold )ie$ P100,600

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,. (c)

Materials i$e$tory, be)i$$i$) P 32,400

P'rc!ases 40,000
Materials aailable *or 'se 72,400
Materials i$e$tory, e$di$) 34,000
Materials 'sed 38,400
Direct labor 33,000
Factory oer!ead 17,160
Ma$'*act'ri$) cost 88,560
or i$ #rocess i$e$tory, be)i$$i$) 7,200
otal 95,760
or i$ #rocess i$e$tory, e$di$) 16,240
Cost of oo%s manufacture% P &#'$"

'. ( %)
Materials i$e$tory,
i$e$tory, a$. 1 P 17,000
P'rc!ases 240,000
Frei)!t i$ 3,000
Materials aailable *or 'se 260,000
Materials i$e$tory, Dec. 31 19,000
Materials 'sed 241,000
Direct labor 320,000
Factory oer!ead 188,000
actor/ cost ,&#""" (1)
or i$ #rocess i$e$tory, a$. 1 12,000
otal 761,000
or i$ #rocess i$e$tory, Dec. 31 13,000
ost o* )oods (a$'*act'red 748,000
Fi$is!ed )oods i$e$tory, a$. 1 62,000
oods aailable *or sale 810,000
Fi$is!ed )oods i$e$tory, Dec. 31 46,000
Cost of oo%s sol% P0,#""" ($)

0. (b) ol2e up3ar% from Cost of 4oo%s ol%.

Materials i$e$tory, a$. 1 P 16,000
Purchases (s5uee6e) $#"""
Materials aailable *or 'se 88,000
Materials i$e$tory, Dec. 31 17,000
Materials 'sed 71,000
Direct labor 30,000
Factory oer!ead 20,000
Factory cost 121,000
or i$ #rocess i$e$tory, a$. 1 16,000
otal 137,000
or i$ #rocess i$e$tory, Dec. 31 30,000
ost o* )oods (a$'*act'red 107,000
Fi$is!ed )oods i$e$tory, a$ 1 14,000
oods aailable *or sale 121,000
Fi$is!ed )oods i$e$tory, Dec. 31 20,400
ost o* )oods sold )ie$ P100,600

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. (c)
Direct (aterials 'sed P100,000
Direct labor 250,000
Factory oer!ead"
Factory s'##lies P 6,000
/$direct labor 50,000
Mac!i$e (ai$te$a$ce a$d re#air 10,000
Factory re$t, li)!t a$d #o-er 24,000
De#reciatio$ 10,000
Payroll taes 30,000 130,000
Factory cost 480,000
or i$ #rocess i$e$tory, a$. 1 30,000
otal 510,000
or i$ #rocess i$e$tory, Dec. 31 40,000
Cost of oo%s manufacture% ,"#""" (1)
Fi$is!ed )oods i$e$tory, a$. 1 50,000
oods aailable *or sale 520,000
Fi$is!ed )oods i$e$tory, Dec. 31 60,000
Cost of oo%s sol% P,0"#""" ($)
!. ( b)
a- (aterials i$e$tory, be)i$$i$) P 44,000
P'rc!ases 600,000
Materials aailable *or 'se 644,000
a- (aterials i$e$tory, e$di$) 60,000
a- (aterials 'sed 584,000
Direct labor 240,000
Factory oer!ead"
/$direct labor P120,000
aes, 'tilities a$d de#reciatio$ 100,000 220,000
Factory cost 1,044,000
or i$ #rocess i$e$tory, be)i$$i$) 80,000
otal 1,124,000
or i$ #rocess i$e$tory, e$d 96,000
ost o* )oods (a$'*act'red 1,028,000
Fi$is!ed )oods i$e$tory, be)i$$i$) 50,000
oods aailable *or sale 1,078,000
Fi$is!ed )oods i$e$tory, e$d 36,000
Cost of oo%s sol% P1#",$#"""
&. ( b)
Direct (aterials 'sed P 500,000
Direct labor 600,000
Factory oer!ead 700,000
Factory cost 1,800,000
or i$ #rocess i$e$tory, be)i$$i$) 200,000
otal 2,000,000
or i$ #rocess i$e$tory, e$d 250,000
ost o* )oods (a$'*act'red 1,750,000
inishe% oo%s in2entor/# beinnin (s5uee6e) 01"#"""
oods aailable *or sale 2,360,000
Fi$is!ed )oods i$e$tory, e$d 760,000
ost o* )oods sold P1,600,000

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1". (%)
Direct (aterials, Dec. 31, 197 P 16,000
P'rc!ases 170,000
+ailable *or 'se 186,000
irect materials# ec. 1# 1&7! (s5uee6e) 0'#""" (1)
Direct (aterials 'sed P301,000 P180,000 121,000
Direct labor 180,000
Factory oer!ead P180,000 : 60;  40; < 120,000
Factory cost 421,000
or i$ #rocess, Dec 31, 197 34,000
otal 455,000
*or8 in process# ec. 1# 1&7! (s5uee6e) $'#""" ($)
ost o* )oods (a$'*act'red 430,000
Fi$is!ed )oods, Dec. 31, 197 30,000
oods aailable *or sale 460,000
inishe% oo%s# ec. 1# 1&7! (s5uee6e) 0"#""" ()
ost o* )oods sold P500,000  80; P400,000

11. (a)
(a) ol2
ol2ee up3a
up3ar%
r% from
from Cost
Cost of 4oo%
4oo%ss ol%
ol%

a- (aterials i$e$tory, 197 P 60,000

Purchases (s5uee6e) 0"#""" (1)
Materials aailable *or 'se 690,000
a- (aterials i$e$tory, 198 90,000
a- (aterials 'sed 600,000
Direct labor 410,000
Factory oer!ead s&'ee=e 821,000
Ma$'*act'ri$) cost 1,831,000
or i$ #rocess i$e$tory, 197 34,000
otal 1,865,000
or i$ #rocess i$e$tory, 198 35,000
Cost of oo%s manufacture% (5uee6e) 1#!"#""" ($)
Fi$is!ed )oods i$e$tory , 197 46,000
oods aailable *or sale 1,876,000
Fi$is!ed )oods i$e$tory , 198 36,000
ost o* )oods sold )ie$ P1,840,000

+ccr'ed *actory #ayroll, 197 P 6,200

Direct labor 410,000
/$direct labor 140,000
+ccr'ed *actory #ayroll, 198  70,000 
Pa/ment of pa/roll P',&#$"" ()

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1$. (b) ol2e up3ar% from Cost of 4oo%s ol%.

a- (aterials i$e$tory, a$. 1 P 11,600
4ross purchases (s5uee6e) !!#01" (1)
Frei)!t i$ 5,570
a- (aterials aailable *or 'se 105,800
a- (aterials i$e$tory, Dec. 31 9,640
a- (aterials 'sed 96,160
Direct labor 32,640
Factory oer!ead"
/$direct labor P12,160
Factory oer!ead e#e$ses 31,730
/$direct (aterials 21,390 65,280
Ma$'*act'ri$) cost 194,080
or i$ #rocess i$e$tory, a$. 1 5,740
otal 199,820
or i$ #rocess i$e$tory, Dec. 31 7,820
ost o* )oods (a$'*act'red 16,000 '$its 192,000
Fi$is!ed )oods i$e$tory, a$. 1 500 '$its  P12> 6,000
oods aailable *or sale 198,000
Fi$is!ed )oods i$e$tory, Dec. 31 1,500 '$its  P12 18,000
ost o* )oods sold 15,000 '$its  P12 P180,000

> P192,000 : 16,000 '$its ? P12

@ales P360,000
ost o* )oods sold 180,000
4ross profit P1!"#""" ($)

1. (%)
Materials i$e$tory, be)i$$i$) P 8,000
P'rc!ases 36,000
Materials aailable *or 'se 44,000
Materials i$e$tory, e$di$) 8,500
Materials 'sed 35,500
Direct labor P15,000 A 2:3 22,500
Factory oer!ead 15,000
Factory cost 73,000
or i$ #rocess i$e$tory, be)i$$i$) 8,000
otal 81,000
or i$ #rocess i$e$tory, e$di$) 15,000
ost o* )oods (a$'*act'red 66,000
Fi$is!ed )oods i$e$tory, be)i$$i$) 7,000
oods aailable *or sale 73,000
Fi$is!ed )oods i$e$tory, e$di$) 10,200
Cost of oo%s sol% P0$#!"" (1)
@ales P 72,000
ost o* )oods sold 62,800
ross #ro*it 9,200
O#erati$) e#e$ses  P72,000  6; 4,320
O#erati$) i$co(e 4,880
Ot!er e#e$ses P72,000  5; 3,600
9et income before income ta7 P 1#$!" ($)

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1,. (a)

ost o* )oods sold P111,000

Fi$is!ed )oods i$e$tory, Dec 31 17,500
4oo%s a2ailable for sale P1$!#'"" (1)

@ales P182,000
ost o* )oods sold 111,000
ross #ro*it 71,000
O#erati$) e#e$ses"
Mareti$) e#e$ses P14,000
e$eral a$d ad(i$istratie e#e$ses 22,900 36,900
:peratin income P ,#1"" ($)

1'. (%)

Factory oer!ead"
/$direct labor P 22,000
Factory !eat, li)!t a$d #o-er 11,220
Factory re$t 18,500
Factory i$s'ra$ce 2,000
Prod'ctio$ s'#erisorBs salary 5,000
/$direct (aterials 'sed P5,600CP16,500 P5,180 16,920
Oerti(e #ay 250 !o'rs  P22  .5< 2,750
Total P!#&" (1)

Direct (aterials i$e$tory, Marc! 1 P 10,250

P'rc!ases 105,000
+ailable *or 'se 115,250
Direct (aterials i$e$tory, Marc! 31 12,700
Direct (aterials 'sed 102,550
Direct labor 4,250 !o'rs  P22 93,500
Factory oer!ead 1 78,390
Factory cost 274,440
or i$ #rocess i$e$tory, Marc! 1 60,420
otal 334,860
or i$ #rocess i$e$tory, Marc! 31 52,800
ost o* )oods (a$'*act'red 282,060
Fi$is!ed )oods i$e$tory, Marc! 1 45,602
oods aailable *or sale 327,662
inishe% oo%s in2entor/# March 1 (5uee6e) ,#00$ ($)
ost o* )oods sold )ie$ P280,000

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10. (%)

Materials, i$e$tory, be)i$$i$) P 75,000

Purchases (5uee6e) 0#""" (1)
+ailable *or 'se 411,000
Materials i$e$tory, e$di$) 85,000
a- (aterials 'sed 326,000
irect labor ;(P0!0#"""-P$0#""") < 10" => $$'#""" ($)
Factory oer!ead P225,000  60; 135,000
Ma$'*act'ri$) cost 686,000
or i$ #rocess i$e$tory, be)i$$i$) 80,000
otal 766,000
or i$ #rocess i$e$tory, e$di$) 30,000
Cost of oo%s manufacture% P 0#""" ()

1. (c)

Materials i$e$tory, 'ly 1 P 88,000

P'rc!ases 366,000
Frei)!t i$ 6,000
+ailable *or 'se 460,000
Materials i$e$tory, 'ly 31 64,000
Direct (aterials 'sed 396,000
Direct labor 523,000
Factory oer!ead P468,400C P116,000  90;< 572,800
Manufacturin cost 1#,!&#!"" (1)
or i$ #rocess i$e$tory, 'ly 1 19,800
otal 1,521,600
or i$ #rocess i$e$tory, 'ly 31 38,800
ost o* )oods (a$'*act'red 1,482,800
Fi$is!ed )oods i$e$tory, 'ly 1 44,200
oods aailable *or sale 1,527,000
Fi$is!ed )oods i$e$tory, 'ly 31 66,000
Cost of oo%s sol% P1#,01#""" ($)

1!. (b)

Direct (aterials"
Materials i$e$tory, Dec 1 P24,000
P'rc!ases 56,000
Materials i$e$tory, Dec 31  20,000  P 60,000
Direct labor 40,000
Prime cost P1""#""" (1)

Direct labor P 40,000

Factory oer!ead P40,000 A P6.40  P8 50,000
Con2ersion cost P &"#""" ($)

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1&. (%)

1. Direct (aterials i$e$tory, e$d P100,000 % P70,000 P30,000

2. or i$ #rocess co$trol, e$d P320,000 % P305,000 P15,000

3. Fi$is!ed )oods co$trol, e$d, P325,000 % P300,000 P25,000

$". (a)

irect materials# ec. 1# $""! (5uee6e) P "#""" (1)

P'rc!ases 90,000
+ailable *or 'se 120,000
Direct (aterials, Dec 199 20,000
Direct (aterials 'sed )ie$ 100,000
Direct labor P72,000 A 200; 36,000
+##lied *actory oer!ead 72,000
Ma$'*act'ri$) cost 208,000
*or8 in process in2entor/# ec. 1# $""! (5uee6e) #""" ($)
otal 211,000
or i$ #rocess i$e$tory, Dec. 31, 199 35,000
ost o* )oods (a$'*act'red 176,000
Fi$is!ed )oods i$e$tory, Dec. 31, 198 50,000
oods aailable *or sale 226,000
Fi$is!ed )oods i$e$tory, Dec. 31, 199 46,000
ost o* )oods sold )ie$ P180,000

$1. (a)

Materials i$e$tory, a$. 1 P 34,200

P'rc!ases P364,000 C P8,600 % P5,200 367,400
+ailable *or 'se 401,600
Materials i$e$tory, Dec. 31 49,300
Direct (aterials 'sed 352,300
Direct labor 162,500
Factory oer!ead P21,350 C P83,400 C P47,900 152,650
Ma$'*act'ri$) cost 667,450
or i$ #rocess i$e$tory, a$ 1 81,500
otal 748,950
or i$ #rocess i$e$tory, Dec. 31 42,350
ost o* )oods (a$'*act'red 4,000 '$its 706,600
Fi$is!ed )oods i$e$tory, a$ 1 300 '$its 48,600
oods aailable *or sale 4,300 '$its 755,200
Fi$is!ed )oods i$e$tory, Dec. 31 420 '$its  P706,600 A 4,000 '$its< 74,193
ost o* )oods sold P281,007

(1) P,#1&?,$" units @ P10.0'

2 @ales 3,880 '$its  P220 P853,600

ost o* )ods sold 281,007
4ross profit P1$#'&

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$$. (c)

Materials 'sed P 440,000

Direct labor 290,000
+##lied *actory oer!ead P290,000  30; 87,000
Factory cost 817,000
or i$ #rocess i$e$tory, +#ril 1, 197 41,200
otal 858,200
or i$ #rocess i$e$tory, +#ril 1, 198 42,500
ost o* )oods (a$'*act'red P 815,700

nit cost (P!1'#"" < 1!#""" nits) P ,'. $ (1)

+##lied *actory oer!ead P 87,000

+ct'al *actory oer!ead
/$direct labor P46,000
Li)!t a$d #o-er 4,260
De#reciatio$ 4,700
e#airs 5,800
Miscella$eo's 29,000 89,760
n%er-applie% factor/ o2erhea% P ($#0") ($)

$. (b)

+##lied *actory oer!ead P70,000 C P112,000 P182,000

+ct'al *actory oer!ead 180,000
:2er-applie% factor/ o2erhea% P $#""" (1)

@ales"
Prod'ct E 9,000  P30 P270,000
Prod'ct  8,800  P50 440,000 P710,000
ost o* )oods sold @c!. 1 512,600
ross #ro*it 197,400
O#erati$) e#e$ses 100,900
:peratin income P &0#'"" ($)

@c!. 1"
Ma$'*act'ri$) cost P210,000 C P296,000 P506,000
Ge)i$$i$) i$e$tories P21,000 C P33,300 54,300
otal 560,300
H$di$) i$e$tories P42,000 C P3,700 45,700
ost o* )oods sold at $or(al 514,600
Oera##lied *actory oer!ead  2,000 
ost o* )oods sold at act'al P512,600

9
 10

$,. (%)

Direct labor 8,000 !rs.  P5.60 C 4,600 !rs.  P6.00 P 72,400

Factory oer!ead 8,000 !rs.  P6.00 C 4,600 !rs  P8.00 84,800
Con2ersion cost P1'#$"" (1)

Materials i$e$tory, be)i$$i$) P 20,000

P'rc!ases 60,000
+ailable *or sale 80,000
Materials i$e$tory, e$di$) 18,000
Direct (aterials 'sed 62,000
o$ersio$ cost 157,200
Factory cost 219,200
or i$ #rocess i$e$tory, be)i$$i$) 15,000
otal 234,200
or i$ #rocess i$e$tory, e$di$) 17,600
ost o* )oods (a$'*act'red 216,600
Fi$is!ed )oods i$e$tory, be)i$$i$) 22,000
oods aailable *or sale 238,600
Fi$is!ed )oods i$e$tory, e$di$) 17,000
Cost of oo%s sol% P$$1#0"" ($)

$'. (c)

Materials i$e$tory, +#ril 1, 198 P 268,000

P'rc!ases 1,946,700
+ailable *or 'se 2,214,200
Materials i$e$tory, '$e 30, 198 167,000
Direct (aterials 'sed 2,047,700
Direct labor 2,125,800
Factory oer!ead 764,000
Factory cost 4,937,500
Fi$is!ed )oods i$e$tory, +#ril 1, 198 43,000
oods aailable *or sale 4,980,500
Fi$is!ed )oods i$e$tory, '$e 30, 198 200  P395 79,000
ost o* )oods sold P4,901,500

nit cost of e5uipment manufacture% (P,#&# '"" < 1$#'"" units) P&'."" (1)

@ales P 6,634,000
ost o* )oods sold 4,901,500
ross #ro*it P 1,732,500

Per unit (P1$#'"" < 1$#,"") P1&. $ ($)

ross #ro*it P 1,732,500

O#erati$) e#e$ses 977,000
 Iet i$co(e P 755,500

Per unit (P''# '"" < 1$#,"") P 0".& ()

10
 11

$0 (%)

Predeter(i$ed oer!ead rate P96,000:P120,000 80;

Applie% factor/ o2erhea% (P!#""" 7 !"=) P0#,"" (1)

+ct'al *actory oer!ead 7,200
n%erapplie% factor/ o2erhea% P !"" ($)

$. (%)

(1) /$direct labor P 6,000

e$t % *actory b'ildi$) 60,000
/$direct (aterials 'sed 8,000
Ot!er *actory oer!ead costs 40,000
Total P11,#"""

($) Applie% factor/ o2erhea% costs (10#""" B hours 7 P) P11$#"""

() Direct Materials 'sed P250,000

Direct labor 300,000
+##lied *actory oer!ead 114,000
Cost of oo%s sol% P00,#"""

$!. (%)

ost o* )oods #laced i$ #rocess P360,000

Fi$is!ed )oods 320,000
*or8 in process  en% (Dob ") P ,"#"""

$&. (%)

(1) otal (a$'*act'ri$) costs P900,000

Direct labor P225,000:72; 312,500
+##lied *actory oer!ead P900,000  25; 225,000
Direct (aterials 'sed P362,500

2 M*). cost C /P,be) ? /P, e$d C OM

P900,000 C .80E ? E C P850,000
.20E ? P50,000
E ? P$'"#""" *P# en%

11
 12

". (c)

Predeter(i$ed oer!ead rate 120,000:P160,000 75;

or i$ #rocess, May 31 P580,000 % P501,800 P78,200

Less" o$ersio$ cost
Direct labor "
ob 123 P12,000
ob 456 12,800 P24,800
+##lied *actory oer!ead"
ob 123 P12,000  75; P 9,000
ob 456 9,600 18,600 43,400
irect materials P,#!""

1. (a)

ept. Aept. F Total

Direct (aterials P25,000 P 5,000P 30,000
Direct labor 20,000> 30,000 50,000
+##lied *actory oer!ead 40,000 15,000>> 55,000
otal P85,000 P50,000 P1'#"""

P40,000:200;
>> P30,000  50;

$. (b)

Gala$ce o* or i$ Process acco'$t, 4:30:08 P 8,800

Direct labor 2,000
+##lied *actory oer!ead P2,000  80; 1,600
irect materials P '#$""

. (b)

Predeter(i$ed oer!ead rate P11,800 : P14,750 80;

Let E ? Direct labor 

!ere*ore 80E ? +##lied *actory oer!ead

Fi$is!ed )oods P37,500

Less" Direct (aterials 'sed P15,500 % P3,200 12,300
Pri(e cost P25,200

E C .80E ? P25,200
180E ? P25,200
G @ P1,#""" irect labor
.!"G @ P11#$"" Applie% factor/ o2erhea%.

12
 13

,. (c)

Ma$'*act'ri$) cost P180,000

Less" Direct labor P30,000
+##lied *actory oer!ead P100  600 !o'rs 60,000 90,000
(1) irect materials use% P &"#"""

Ma$'*act'ri$) cost P180,000

/P, Dec. 1" Direct (aterials 3,000  P2.40 P7,200
Direct labor 3,000  P.80 2,400
+##lied FO 48 !rs  P100 4,800 14,400
otal 194,400
/P, Dec. 31" DM 2,000  P2.40 P4,800
DL 2,000  P.80 1,600
+##lied FO 32 !rs.  P100 3,200 9,600
($) Cost of oo%s manufacture% P1!,#!""
Fi$is!ed )oods, Dec. 1 12,000
oods aailable *or sale 196,800
Fi$is!ed )oods, Dec. 31"
DM P5,000
DL 3,000
+##lied FO P100  60 !rs 6,000 14,000
() Cost of oo%s sol% P1!$#!""

'. (%)

1 Direct (aterials 'sed P26,000

Direct labor 30,000
+##lied FO"
Moldi$) De#t. P2.70  2,000 !o'rs P5,400
Decorati$) De#t. 35;  P12,000 4,200 9,600
Estimate% cost to pro%uce P0'#0""

2 Fi% Price (P0'#0"" 7 1,'= ) P&'#1$"

0. (b)

 Job 115 Job 116 Job 117 Job 118 Total 

/P, be). P81,200
'rre$t cost"
DM  P39,000 P53,000 P47,000 P139,000
DL 26,000 45,000 47,000 16,000 134,000
+FO 31,200 54,000 56,400 19,200 160,800
otal cost P138,400 P138,000 P156,400 P82,200 P515,000

1 ost o* )oods (a$'*act'red" ob 115 P128,400

ob 116 138,000
ob 117 156,400
Total P,$#!""

13
 14

2 /P, +'). 31 ob 118 P !$#$""

. (c)

1 P1#$!"#""" ? P1#0""#""" @ !"=

($) /P, e$d P280,000

Direct Labor 100,000
+##lied FO .80  P100,000  80,000
irect materials P1""#"""

!. (a)

1 +cco'$ts #ayable, Marc! 31 P 20,000

Pay(e$t o* acco'$ts #ayable *or (aterials 70,000
+cco'$ts #ayable, Marc! 1 12,000
Materials #'rc!ased P 78,000

2 !is ca$ be co(#'ted by -ori$) bac-ard *ro( cost o* )oods sold as *ollo-s"

osts o* )oods sold P 600,000

Fi$is!ed )oods i$e$tory, Marc! 31 120,000
Fi$is!ed )oods i$e$tory, Marc! 1 100,000
ost o* )oods (a$'*act'red 620,000
or i$ #rocess, Marc! 31 P12,000CP24,000CP48,000 84,000
or i$ #rocess, Marc! 1 60,000
Ma$'*act'ri$) cost 644,000
+##lied *actory oer!ead 200;  P160,000 320,000
Direct labor 160,000
Direct (aterials 'sed 164,000
Materials i$e$tory, Marc! 31 30,000
P'rc!ases 1 78,000
Materials in2entor/# March 1 P 110#"""

&. (%)

(1) Applie% factor/ o2erhea% ($""= 7 P10"#""") @ P$"#"""

+ct'al *actory oer!ead 300,000
($) :2erapplie% factor/ o2erhea% P $"#"""

,". (b)

1 Direct (aterials P26,000

Direct labor 20,000
Prime cost P,0#"""

2 Direct labor P20,000

+##lied *actory oer!ead 150;  P20,000 30,000
Con2ersion costs P'"#"""

14
 15

,1. (c)

or i$ #rocess, May 1 "

ob 769 P9,000
ob 772 2,900 P11,900
'rre$t cost"
Direct (aterials P26,000
Direct labor 20,000
+##lied *actory oer!ead 150;  P20,000 30,000 76,000
otal cost o* )oods #laced i$ #rocess 87,900
Less" or i$ #rocess, May 31 ob 779"
Direct (aterials P2,800
Direct labor 1,800
+##lied *actory oer!ead 150;  P1,800 2,700 7,300
Cost of oo%s manufacture% P!"#0""
Fi$is!ed )oods i$e$tory, May 31 Job 776 4,000
Cost of oo%s sol% at normal P0#0""

,$. (%)

or i$ #rocess, be)i$$i$) P 40,000

'rre$t costs"
Direct (aterials P98,000
Direct labor 50,000
+##lied *actory oer!ead P30  2,000 !o'rs 60,000 208,000
otal 248,000
Ma$'*act'ri$) cost 210,000
*or8 in process# en% P !#"""

,. (a) P"#""" 7 '""=

,,. (b)

+##lied (a$'*act'ri$) oer!ead 50; o* direct labor P30,101.80

Direct labor P30,101.80  2 60,203.60
o$ersio$ cost 50; o* (a$'*act'ri$) cost 90,305.40
!'s, t!e cost o* (aterials 'sed e&'als 90,305.40
Ma$'*act'ri$) costs 180,610.80
Decrease i$ -or i$ #rocess i$e$tory 590.00
Cost of oo%s manufacture% P1!1#$"".!"

,'. (a)
Direct (aterials 'sed P45,000 cr
Direct labor 11,500 cr
+##lied *actory oer!ead "
ob E P5,000  200;> P10,000
ob  P4,000  200;> 8,000
ob K P2,500  200;> 5,000 23,000 cr
otal (a$'*act'ri$) cost c!ar)ed to or i$ Process P79,500 dr
> P300,000 : P150,000 ? 200;

15
 16

,0. (%)

Direct (aterials 'sed"

Materials i$e$tory, '$e 1 P 97,200
P'rc!ases 120,000
+ailable *or 'se 217,200
Materials i$e$tory, '$e 30 102,000 P115,200
Direct labor 19,800 !o'rs  5 99,000
+##lied *actory oer!ead 19,800 !o'rs  P2.50 49,500
Manufacturin cost $0#"" (1)
or i$ #rocess, '$e 1 21,420
otal 285,120
or i$ #rocess, '$e 30 48,420
Cost of oo%s manufacture% P$0#"" ($)

,. (a)

Direct (aterials 'sed"

Materials i$e$tory, 11:1 P 10,000
P'rc!ases 50,000
+ailable *or 'se 60,000
Materials i$e$tory, 11:30 25,000 P 35,000
Direct labor 25,000 !o'rs  P4 100,000
+##lied *actory oer!ead 25,000 !o'rs  P3 75,000
Factory cost 210,000
or i$ #rocess i$e$tory, 11:1 50,000
otal 260,000
*or8 in process in2entor/# 11?"+
Direct (aterials P 5,000
Direct labor 5,000  P4 20,000
+##lied *actory oer!ead 5,000  P3 15,000 40,000 1
Cost of oo%s manufacture% P$$"#""" ($)

,!. (a)

+##lied (a$'*act'ri$) oer!ead P3,600,000

Diided by #redeter(i$ed oer!ead rate based o$ direct labor cost 200;
irect labor cost P1#!""#"""

,&. (a)

Ma$'*act'ri$) cost P 8,000,000

Direct labor 1,800,000
+##lied *actory oer!ead 3,600,000
irect material use% P $#0""#"""

16
 17

'". (a)

Ma$'*act'ri$) cost P8,000,000

or i$ #rocess i$e$tory, 1:1 320,000
ost o* )oods (a$'*act'red 7,920,000
*or8 in process in2entor/# 1$?1 P ,""#"""

'1. (b), credit to Materials acco'$t.

'$. (b)

Direct labor !o'rs P360,000:P15 24,000 !rs.

Factory oer!ead !ead #er !o'r  P20
Applie% manufacturin o2erhea% P,!"#"""

'. (a)# debit to Fi$is!ed oods acco'$t

',. (a)

or i$ #rocess, a$'ary 1 P 20,000

Ma$'*act'ri$) cost"
Direct (aterials 'sed P380,000
Direct labor 360,000
+##lied *actory oer!ead 480,000 1,220,000
otal 1,240,000
ost o* )oods (a$'*act'red debit to *i$is!ed )oods 940,000
*or8 in process# ecember 1 P ""#"""

''. (b)

ost o* )oods (a$'*act'red P 940,000

Fi$is!ed )oods, a$'ary 1 10,000
oods aailable *or sale 950,000
Fi$is!ed )oods, Dece(ber 31 50,000
ost o* )oods sold be*ore adJ'st(e$t *or oer:'$der a##lied oer!ead P 900,000

'0. (b)

+ct'al (a$'*act'ri$) oer!ead P 540,000

+##lied (a$'*act'ri$) oer!ead 480,000
n%er-applie% o2erhea% P 0"#"""

'. (a)

@ales P1,090,000
ost o* )oods sold at act'al P900,000 C P60,000 960,000
ross #ro*it 130,000
Ma$'*act'ri$) e#e$ses 140,000
:peratin income (loss) P( 1"#""")

17
 18

'!. (c)

@ales P1,090,000
ost o* )oods sold 943,200
ross #ro*it 146,800
Ma$'*act'ri$) oer!ead 140,000
O#erati$) i$co(e P 6,800

Prorati$) o* '$dera##lied oer!ead"

Amount Ratio Pro-ration
or i$ #rocess P 300,000 24; P14,400
Fi$is!ed )oods 50,000 4; 2,400
ost o* )oods sold 900,000 72; 43,200
otal P1,250,000 100; P60,000

'&. (c)

Materials i$e$tory, a$'ary 1 P30,000

0 P'rc!ases debit to (aterials 70,000
Direct (aterials re&'isitio$ed debit to -or i$ #rocess 40,000
Materials# Danuar/ 1 P0"#"""

0". (%)

Direct labor !o'rs 11,000

ate #er !o'r P6
irect labor cost P00#"""

01. (b)# cre%it to accrue% pa/roll.

0$. (a)

Direct labor !o'rs 11,000

/$direct cost rate  P4
Applie% factor/ o2erhea% cost P,,#"""

0. (%)

or i$ #rocess, a$'ary 1 P 2,000

Ma$'*actory cost"
Direct (aterials 'sed P40,000
Direct labor 66,000
+##lied *actory oer!ead 44,000 150,000
otal 152,000
ost o* )oods sold credit to *i$is!ed )oods 80,000
*or8 in process# Danuar/ 1 P $#"""

18
 19

0,. (c)

Fi$is!ed )oods, a$'ary 1 P 20,000

ost o* )oods (a$'*act'red credit to -or i$ #rocess 80,000
ost )oods sold 60,000
inishe% oo%s# Danuar/ 1 P ,"#"""

0'. (a)

00# (%)# cre%it to finishe% oo%s account.

0. (%)

+##lied *actory oer!ead P 44,000

+ct'al *actory oer!ead 48,000
n%er-applie% o2erhea% P ,#"""

0!. (c)

19
 20

PR:FBEM

Problem 1-1

a. Materials 13,500
+cco'$ts #ayable 13,500

 b. or i$ #rocessdirect (aterial 17,500

Materials 17,500

c. Factory oer!ead co$trol/$direct (aterials 1,800

Materials 1,800

d. Payroll 27,000
+ccr'ed #ayroll 27,000

Labor cost distrib'tio$"

or i$ #rocessdirect labor 17,000

Factory oer!ead co$troli$direct labor 2,000
@elli$) e#e$se co$trolsalaries 5,000
+d(i$istratie e#e$se co$trolsalaries 3,000
Payroll 27,000

e. Factory oer!ead co$trolario's 2,508

as! 2,508

*. Factory oer!ead co$trolario's 8,500

+cco'$ts #ayable 8,500

). or i$ #rocessFactory oer!ead 14,808

Factory oer!ead co$trol 14,808

!. Fi$is!ed )oods 60,100

or i$ #rocess 60,100

i. +cco'$ts receiable 75,000

@ales 75,000

ost o* )oods sold 60,000

Fi$is!ed )oods 60,000
 Finished goods, Jan. 1 P15,000
ost o! "rodu#tion 60,100
 Finished goods, Jan $1 %15,100&
ost o! good sold P60,000

20
 21

Problem 1-$

a. Materials 100,000
+cco'$ts #ayable 100,000

 b. or i$ #rocessdirect (aterial 49,000

Factory oer!ead co$troli$direct (aterial 9,000
Materials 58,000

c. Payroll 88,000
it!!oldi$) ta #ayable 10; 8,800
@@@ Pre(i'( Payable 5; 4,400
Pa)ibi) #re(i'( Payable 880
Medicare #re(i'( #ayable 1,320
+ccr'ed #ayroll $et 72,600

or i$ #rocess direct (aterial 60,000

Factory oer!ead co$trol 12,000
@elli$) e#e$ses 6,000
e$eral ad(i$istratie e#e$ses 10,000
Payroll 88,000

+ccr'ed #ayroll 7 2,600

as! 72,600

d. Factory oer!ead co$trol P4,800 C P960 5,160

@elli$) e#e$ses 480
e$eral ad(i$istratie e#e$ses 800
@@@ #re(i'( #ayable 4,400
Medicare #re(i'( #ayable 1,320
H #re(i'( #ayable 440
Pa)ibi) #re(i'( #ayable 880

 'ire#t labor (ndire#t labor )ales *!!i#e )alar+ Total

P60,000 P12,000 P6,000 P10,000 P88,000

5; P 3,000 P 600 P 300P 500 P 4,400

1.5; 900 180 90 150 1,320
1.5; 300 60 30 50 440
1; 600 120 60 100 880
P 4,800 P960 P 480P 800 P 7,040

e. Factory oer!ead co$trol 15,000

as! 15,000

*. or i$ #rocess 30,000

+##lied *actory oer!ead 30,000

21
 22

 Problem 1-2, continued.

). Fi$is!ed )oods 120,000

or i$ #rocess 120,000

!. +cco'$ts receiable 52,000

@ales 52,000

ost o* )oods sold 40,000

Fi$is!ed )oods 40,000

Problem 1-

a. Materials 64,000
+cco'$ts #ayable 64,000

 b. or i$ #rocess 37,000

Factory oer!ead co$trol 5,600
Materials 42,600

c. Payroll 100,000
it!!oldi$) ta #ayable 14; 14,000
@@@ Pre(i'( Payable 5; 5,000
Medicare #re(i'( #ayable . 5; 500
Pa)ibi) #re(i'( #ayable . 5; 500
+ccr'ed #ayroll 80,000

+ccr'ed #ayroll 80,000

as! 80,000

d. or i$ #rocess P100,000  55; 55,000

Factory oer!ead co$trol P100,000  18; 18,000
@elli$) e#e$ses P100,000  17; 17,000
e$eral ad(i$istratie e#e$ses P100,000  10; 10,000
Payroll 100,000

e. Factory oer!ead co$trol 5,100

@elli$) e#e$ses 1,190
e$eral ad(i$istratie e#e$ses 700
@@@ #re(i'( #ayable 5,000
Medicare #re(i'( #ayable 1,000
H #re(i'( #ayable 500
Pa)ibi) #re(i'( #ayable 500

22
 23

 Problem 1-3, continued:

 'ire#t labor (ndire#t labor )ales Administratie Total

P55,000 P18,000 P17,000 P10,000 P100,000

5; P 2,750P 900P 850P 500P 5,000

1; 550 180 170 100 1,000
; 275 90 85 50 500
; 275 90 85 50 500
P 3,850 P1,260 P 1,190P 700 P7,000

*. or i$ #rocess 44,000

Factory oer!ead co$trol 44,000

). Factory oer!ead co$trol 21,700

+cc'('lated de#reciatio$ 18,000
Pre#aid i$s'ra$ce 1,200
+cco'$ts #ayable 2,500

!. Fi$is!ed )oods 103,000

or i$ #rocess 103,000

i. +cco'$ts receiable 168,750

@ales 168,750

ost o* )oods sold P168,750 : 135; 125,000

Fi$is!ed )oods 125,000

 J. as! 145,000

+cco'$ts receiable 145,000

Problem 1-,

1. a. Materials 200,000
+cco'$ts #ayable 200,000

b. or i$ #rocess 180,000

Materials 180,000

c. Factory Payroll 120,000

it!!oldi$) ta #ayable 6,000
@@@ co$trib'tio$ #ayable 3,200
P!il, !ealt! co$trib'tio$ #ayable 1,300
Pa)ibi) co$trib'tio$ #ayable 2,000
+ccr'ed #ayable 107,500

d. Factory oer!ead co$trol 8,800

@@@ co$trib'tio$ #ayable 5,500
P!il. Nealt! co$trib'tio$ #ayable 1,300

23
 24

Pa)ibi) co$trib'tio$ #ayable 2,000

 Problem 1-4, continued:

e. or i$ #rocess 80,000

Factory oer!ead co$trol 40,000
Factory #ayroll 120,000

*. Factory oer!ead co$trol 67,500

+cco'$ts #ayable 67,500

). or i$ #rocess 96,000

+##lied *actory oer!ead 96,000

!. Fi$is!ed )oods 320,000

or i$ #rocess 320,000

i. as!:acco'$ts receiable 480,000

@ales 480,000

ost o* )oods sold 320,000

Fi$is!ed )oods 320,000

J. +##lied *actory oer!ead 96,000

ost o* )oods sold 20,300
Factory oer!ead co$trol 116,300

$. or i$ #rocess, October 1 P 15,000

Factory cost"
Direct (aterials P180,000
Direct labor 80,000
+##lied *actory oer!ead 96,000 356,000
otal 371,000
ost o* )oods (a$'*act'red 320,000
or i$ #rocess, October 31 P 51,000

Problem 1-'
1 or i$ #rocess 135,000
Materials 135,000

2 or i$ #rocess 120,000

Factory #ayroll 120,000

3 or i$ #rocess 96,000

+##lied *actory oer!ead 96,000
1,920 !o'rs  P50

24
 25

 Problem 1-5, continued "

4 Fi$is!ed )oods 288,000

or i$ #rocess 288(000

  Job 66 Job 67 Total  

or i$ #rocess, be)i$$i$) P 40,000 P 15,000 P 55,000
Factory cost"
Direct (aterials 35,000 45,000 80,000
Direct labor 45,000 40,000 85,000
+##lied *actory oer!ead 36,000 32,000 68,000
otal P156,000 P132,000 P288,000

Problem 1-0

1 a. Materials 229,040

+cco'$ts #ayable 229,040

 b. Payroll 220,000

Payroll #ayable 220,000

c. or i$ #rocess 156,000

Factory oer!ead co$trol 24,000
@elli$) a$d ad(i$istratie e#e$ses 40,000
Payroll 220,000
 'ire#t labor
ob 101 5,000 !o'rs  P8 P 40,000
ob 102 8,000 !o'rs  P10 80,000
ob 103 6,000 !o'rs  P6 36,000
otal P156,000

d. or i$ #rocess 216,350

Factory oer!ead co$trol 15,040
Materials 231,390

e. or i$ #rocess 85,500

+##lied *actory oer!ead 85,500

*. Fi$is!ed )oods 380,700

or i$ #rocess 380,700
 Job 101 Job 10 Total 
or i$ #rocess, a$.1 P 11,000 P 4,000 P 15,000
Ma$'*act'ri$) cost"
Direct (aterials 103,200 84,000 187,200
Direct labor 40,000 80,000 120,000
+##lied oer!ead 22,500 36,000 58,500
otal P176,700 P204,000 P380,700

+cco'$ts receiable 520,000

25
 26

@ales 520,000

 Problem 1-6, continued:

). as! 494,000
@ales disco'$t 26,000
+cco'$ts receiable 520,000

!. Mareti$) a$d ad(i$istratie e#e$ses 30,000

Factory oer!ead co$trol 49.720
as! 79,720

i. +cco'$ts #ayable 170,000

as! 170,000

 J. +##lied *actory oer!ead 85,500

$dera##lied oer!ead 3,260
Factory oer!ead co$trol 3,260

ost o* )oods sold 3,260

$dera##lied oer!ead 3,260

2. Dosel/n Compan/
tatement of Cost of 4oo%s ol%
Month En%e% Danuar/ 1# $"1"

Direct (aterials 'sed P216,350

Direct labor 156,000
+##lied *actory oer!ead 85,500
Factory cost 457,850
or i$ #rocess, a$'ary 1 15,000
otal cost o* )oods #laced i$ #rocess 472,850
or i$ #rocess, a$'ary 31 ob. 103 92.150
ost o* )oods (a$'*act'red 380,700
Fi$is!ed )oods, a$'ary 1 65,000
oods aailable *or sale 445,700
Fi$is!ed )oods, a$'ary 31 65,000
ost o* )oods at $or(al 380,700
$dera##lied oer!ead 3,260
ost o* )oods sold at act'al P383,960

Problem 1-

1 a. Materials 22,000

+cco'$ts #ayable 22,000

 b. or i$ #rocess 18,600

Factory oer!ead co$trol 2,400
Materials 21,000

26
 27

 Problem 1-7, continued "

c. Materials 600
Factory oer!ead co$trol 200
or i$ #rocess ob 622 400

d. +cco'$ts #ayable 800

Materials 800

e. Payroll 38,000
Payroll #ayable 38,000

*. or i$ #rocess 20,900

Factory oer!ead co$trol 7,600
@elli$) e#e$ses 5,700
+d(i$istratie e#e$ses 3,800
Payroll 38,000

). Factory oer!ead co$trol 9,404.50

+cc'('lated de#reciatio$ 2,000
Pre#aid i$s'ra$ce 250
+cco'$ts #ayable 7,154.50

!. or i$ #rocess 16,720

+##lied *actory oer!ead 16,720
P20,900  80;

i. Fi$is!ed )oods P23,436 C P29.948 53,384

or i$ #rocess 53,384
 Job 61 Job 6 Job 6$
or i$ #rocess, Marc! 1 P6,580 P8,260 P4,230
'rre$t costs"
Direct (aterials 5,300 7,000 5,900
Direct labor 6,420 8,160 6,320
+##lied FO 5,136 6,528 5,056
otal P23,436 P29,948 P21,506

 J. +cco'$ts receiable 53,810.40

@ales 53,810.40
P15,000 C P23,436  140;

ost o* )oods sold 38,436

Fi$is!ed )oods 38,436

. as! 40,000
+cco'$ts receiable 40,000

$. che%ule of in2entor/# March 1+

Materials i$e$tory bala$ce o* Materials acco'$t P14,800

27
 28

Fi$is!ed )oods ob 622 29,948

or i$ #rocess ob 623 21,506
Problem 1-!
(1) 9anc/ Corporation
Cost of oo%s sol% statement
Month En%e% eptember "# $"1"

Direct (aterials 'sed P 29,800

Direct labor 18,600
+##lied *actory oer!ead 27,450
Ma$'*act'ri$) cost 75,850
or i$ #rocess i$e$tory, @e#t. 1 4,070
otal 79,920
or i$ #rocess i$e$tory, @e#t.30 4,440
ost o* )oods (a$'*act'red 75,480
Fi$is!ed )oods i$e$tory, @e#t.1 9,800
oods aailable *or sale 85,280
Fi$is!ed )oods i$e$tory, @e#t. 30 9,250
ost o* )oods sold P 76,030

($) 9anc/ Corporation

ncome tatement
Month En%e% eptember "# $"1"

 Iet sales P144,900 % P1,300 P143,600

ost o* )oods sold 76,030
ross #ro*it 67,570
O#erati$) e#e$ses"
Mareti$) e#e$ses P 25,050
De#reciatio$ P30 C P16 C P20 C 24 90
e$eral ad(i$istratie e#e$ses 19,700 44,840
 Iet i$co(e P 22,730

() Computation of o2er(un%er)applie% factor/ o2erhea%+

+##lied *actory oer!ead P27,450

+ct'al *actory oer!ead"
Oer!ead #aid P20,100
/$direct (aterials 3,950
De#reciatio$ b'ildi$) 150
De#reciatio$ (ac!i$ery a$d e&'i# 800
/$direct labor 4,400 29,400
$dera##lied *actory oer!ead P 1,950 

28
 29

Problem 1-&

(1) Pena Manufacturin Compan/

tatement of Cost of 4oo%s Manufacture%
or the ear En%e% ecember 1# $"1"

a- (aterials i$e$tory be)i$$i$) P 60,000 >

P'rc!ases P52,000 A 65;  2< 160,000
+ailable *or 'se 220,000
a- (aterials i$e$tory, e$di$) 20,000
Direct (aterials 'sed 200,000
Direct labor 120,000
Factory oer!ead 80,000
Ma$'*act'ri$) cost 400,000
or i$ #rocess i$e$tory, e$di$) 25,000
ost o* )oods (a$'*act'red P375,000

> Let E? a- (aterials i$e$tory, be)i$$i$)

1:3E? a- (aterials i$e$tory, e$di$)
!ere*ore"
E C P160,000 % 1:3E ? P200,000
2:3E ? P40,000
E ? P60,000

($) Pena Manufacturin Compan/

ncome tatement
or the ear En%e% ecember 1# $"1"
@ales P300,000 A 60;
ost o* )oods sold" P500,000
ost o* )oods (a$'*act'red P375,000
Fi$is!ed )oods i$e$tory, be)i$$i$) 25,000
oods aailable *or sale 400,000
Fi$is!ed )oods i$e$tory, e$di$) 100,000 300,000
ross #ro*it 200,000
O#erati$) e#e$ses s&'ee=e
@elli$) e#e$ses 96,000
e$eral e#e$ses 24,000 120,000
 Iet i$co(e be*ore ta 80,000
Proisio$ o* i$co(e ta 28,000
 Iet i$co(e a*ter ta P 52,000

upportin computations+
Finished goods inventories:
OM C F, be) % F, e$d ? O@
Let E ? Fi$is!ed )oods i$e$tory be)i$$i$)
4E ? Fi$is!ed )oods i$e$tory e$di$)
!ere*ore"
P375,000 C E % 4E ? P300,000
3E ? P375,000

29
 30

E ? P25,000 *i$is!ed )oods, be)i$$i$)

4E ? P100,000 *i$is!ed )oods e$di$)
 Problem 1-9, continued:
!er"ting e#!enses:
@H C H ? OH
Let E ? H
4E ? @H
!ere*ore"
4E C E ? 120,000
5E ? 120,000
E ? 24,000 H
4E ? 96,000 @H

Problem 1-1"
 $ourn"l %ntries

a Materials 18,400

+cco'$ts #ayable 18,400

b Factory oer!ead co$trol 53,060

+cco'$ts #ayable 53,060

c Payroll 172,000

+ccr'ed #ayroll 172,000

or i$ #rocess direct labor 121,000

Factory oer!ead co$trol 25,000
@elli$) e#e$ses 16,000
+d(i$istratie e#e$ses 10,000
Payroll 172,000

+ccr'ed #ayroll P4,500 C P172,000 176,500

as! 176,500

d or i$ #rocess direct (aterials 115,000

Factory oer!ead co$trol 16,600
Materials 131,600

e or i$ #rocess 94,660

Factory oer!ead co$trol 94,660

* Fi$is!ed )oods 376,000

or i$ #rocess 376,000

) +cco'$ts receiable 482,300

@ales 482,300
P19,000 C P376,000 % P24,000  130;

ost o* )oods sold 371,000

Fi$is!ed )oods 371,000
P19,000 C P376,000 % P24,000? P371,000

30
 31

 Problem 1-1&, continued:

! as! P425,800  98; 417,323

@ales disco'$t P425,840  2; 8,517
+cco'$ts receiable 425,840

i @elli$) e#e$ses P60,000  60; 36,000

e$eral ad(i$istratie e#e$se P60,000  40; 24,000
+cco'$ts #ayable 60,000

J +cco'$ts #ayable 208,000

as! 208,000

Problem 1-11

(1) Cost of oo%s sol% statement+

Materials i$e$tory, '$e 1 P15,000

P'rc!ases 33,000
Materials aailable *or sale P48,000
Less" Materials i$e$tory, '$e 30 P19,000
/$direct (aterials 'sed 1,000 20,000
Direct (aterials 'sed 28,000
Direct labor P49,000 A 7  6< 42,000
Factory oer!ead"
e$eral *actory oer!ead P13,000
De#reciatio$ 17,000
/$direct (aterials 1,000
/$s'ra$ce 2,000
/$direct labor P49,000 A 7 7,000 40,000
Ma$'*act'ri$) cost 110,000
or i$ #rocess i$e$tory, '$e 1 40,000
otal 150,000
or i$ #rocess i$e$tory, '$e 30 30,000
ost o* )oods (a$'*act'red 120,000
Fi$is!ed )ood i$e$tory, '$e 1 70,000
oods aailable *or sale 190,000
Fi$is!ed )oods i$e$tory, '$e 30 50,000
ost o* )oods sold P140,000

($) ummar/ Iournal entries+

a Materials 33,000

+cco'$ts #ayable 33,000

b or i$ #rocessDirect (aterials 28,000

Factory oer!ead co$trol 1,000
Materials 29,000

31
 32

 Problem 1-11, continued:

c  Payroll 49,000
+ccr'ed #ayroll 49,000

d or i$ #rocessdirect labor 42,000

Factory oer!ead co$trol 7,000
Payroll 49,000

e Fi$is!ed )oods 120,000

or i$ #rocess 120,000

* +cco'$ts receiable 210,000

@ales P140,000  150; 210,000

ost o* )oods sold 140,000

Fi$is!ed )oods 140,000

Problem 1-1$
'om!ut"tion o( 'osts:
1. Direct (aterials 'sed P 710,000
Direct labor 1,300,000
+##lied *actory oer!ead P1,300,000  160; 2,080,000
Ma$'*act'ri$) cost P4,090,000

2. @'##lies P 100,000
/$direct labor 900,000
De#reciatio$ o* b'ildi$) a$d *actory e&'i#. 400,000
Miscella$eo's 550,000
otal act'al *actory oer!ead P1,950,000

3. a- (aterials i$e$tory, a$. 1, 2010 P 100,000

P'rc!ases 800,000
+ailable *or 'se 900,000
a- (aterials 'sed  710,000 
a- (aterials i$e$tory 190,000
Less i$direct (aterials 'sed s'##lies 100,000
a- (aterials i$e$tory, Dec. 31,2010 P 90,000

4. Ma$'*act'ri$) cost 1 P4,090,000

or i$ #rocess, a$. 1, 2010 60,000
ost o* )oods (a$'*act'red  4,120,000 
or i$ #rocess, Dec. 31,2010 P 30,000

5. +##lied *actory oer!ead 1 P2,080,000

+##lied *actory oer!ead 2 1,950,000
Oera##lied *actory oer!ead P 130,000

6. ost o* )oods sold at $or(al P4,020,000

32
 33

Oera##lied *actory oer!ead 5  130,000

ost o* )oods sold at act'al P3,890,000

Problem 1-1

)1* $+ 'om!"n

 "l"nce /heet 
 0ecember 31, 2&&9

Assets
as! @c!ed'le 1 P 38,000
+cco'$ts receiable 20,000
Fi$is!ed )oods i$e$tory P12,000 % 1:3  P12,000< 8,000
or i$ #rocess i$e$tory P4,000 % 50;  P4,000< 2,000
Materials i$e$tory P8,000 % 50;  P8,000< 4,000
Pre#aid e#e$ses 1,000
Pro#erty, #la$t, a$d e&'i#(e$t P60,000 % P8,000 52,000
otal P125,000

Biabilities an% toc8hol%ersJ E5uit/

'rre$t liabilities P 35,000
@toc!oldersB e&'ity"
a#ital stoc P60,000
etai$ed ear$i$)s 30,000 90,000
otal P125,000

 /u!!orting 'om!ut"tions:

che%ule 1

as! bala$ce, a$ 1, 2009 P 10,000

ollectio$ o* acco'$ts receiable a 120,000
otal 130,000
Pay(e$ts"
Payroll b P18,000
Factory oer!ead c  16,000
Mareti$) e#e$ses d 12,000
+d(i$istratie e#e$ses e 16,000
Pay(e$t o* (aterials #'rc!ases Per O@ 30,000 92,000
as! bala$ce, Dec. 31, 2009 P 38,000

a +cco'$ts receiable, a$. 1, 2009 P 20,000

@ales o$ acco'$t 120,000
+cco'$ts receiable, Dec. 31, 2009 re&'ired bala$ce  20,000 
ollectio$s P120,000

b 'rre$t liabilities, a$. 1, 2009 P 35,000

Direct labor cost accr'ed #ayroll 18,000
'rre$t liabilities, Dec. 31, 2009 re&'ired bala$ce  35,000 
Pay(e$t o* c'rre$t liabilities P 18,000

33
 34

 Problem 1-13, continued:

c +ct'al *actory oer!ead P18,000 C P4000 P 22,000

Less de#reciatio$ P8,000  Q 6,000
Pay(e$t P 16,000

d Mareti$) e#e$ses #aid P120,000  10; P 12,000

e +d(i$istratie e#e$ses P120,000  15; P 18,000

Less de#reciatio$ P8,000  R 2,000
Pay(e$t P 16,000

)2* $+ 'om!"n

 ncome /t"tement 
e"r %nded 0ecember 31, 2&&9

@ales P120,000
ost o* )oods sold at act'al @c!. 2 80,000
ross #ro*it 40,000
O#erati$) e#e$ses"
Mareti$) e#e$ses P12,000
+d(i$istratie e#e$ses 18,000 30,000
 Iet i$co(e P 10,000

che%ule $- tatement of Cost of 4oo%s ol%

Direct (aterials 'sed"

/$e$tory, a$. 1 P 8,000
P'rc!ases s&'ee=e 30,000
/$e$tory, Dec. 31  4,000  P 34,000
Direct labor 18,000
+##lied *actory oer!ead 18,000
Factory cost 70,000
or i$ #rocess i$e$tory, a$. 1 4,000
otal 74,000
or i$ #rocess i$e$tory, Dec. 31 2,000
ost o* )oods (a$'*act'red 72,000
Fi$is!ed )oods i$e$tory, a$. 1 12,000
oods aailable *or sale 84,000
Fi$is!ed )oods i$e$tory, Dec. 31 8,000
ost o* )oods sold at $or(al 76,000
$dera##lied *actory oer!ead 4,000
ost o* )oods sold at act'al P 80,000

34
 35

Problem 1-1,

1. 'ost o( $obs+
 Job $/ Job 567  
Direct (aterials 'sed P 32,500 P 59,000
Direct labor 35,000 30,000
+##lied *actory oer!ead 35,000 30,000
otal *actory cost P102,500 P119,000

$+ (a) P'rc!ases o* (aterials P100,000

Materials re&'isitio$ed 94,000
Materials ret'r$ed to storeroo( 2,500
Materials acco'$t bala$ce P 8,500

b Materials re&'isitio$ed P 94,000

Direct labor 65,000
+##lied *actory oer!ead 65,000
Materials ret'r$ed *or ob 2,500 2,500
o(#leted Job 234 102,500
or i$ #rocess, e$d P119,000

c ost o* )oods sold ob 234 P102,500

Problem 1-1'

1.  $ourn"l entries

 b. Materials 720,000

+cco'$ts #ayable 720,000

c. or i$ #rocess 560,000

Factory oer!ead co$trol 40,000
Materials 600,000

d. Factory #ayroll 680,000

it!!oldi$) ta #ayable 34,000
@@@ co$trib'tio$s #ayable 7,500
P!il. Nealt! co$trib'tio$s #ayable 2,400
Pa)ibi) co$trib'tio$s #ayable 2,000
Payroll #ayable 634,100

Payroll #ayable 634,100

as! 634,100

or i$ #rocess 620,000

Factory oer!ead co$trol 60,000
Factory #ayroll 680,000

35
 36

 Problem 1-15, continued "

e. Factory oer!ead co$trol 14,600

@@@ o$trib'tio$s #ayable 10,200
P!il. Nealt! co$trib'tio$s #ayable 2,400
Pa)ibi) co$trib'tio$s #ayable 2,000

*. Factory oer!ead co$trol 60,000

+cc'('lated de#reciatio$ 60,000

). Factory oer!ead co$trol 340,000

+cco'$ts #ayable 340,000

!. or i$ #rocess 620,000

+##lied *actory oer!ead 620,000

i. Fi$is!ed )oods 1,200,000

or i$ #rocess 1,200,000

 Job /0 Job /1
or i$ #rocess, '$e 1 P 20,000 P 60,000
'rre$t costs"
Direct (aterials 100,000 220,000
Direct labor 200,000 200,000
+##lied FO 200,000 200,000
otal costs P520,000 P680,000

 J. +cco'$ts receiable 900,000

@ales 900,000

ost o* )oods sold 520,000

Fi$is!ed )oods 520,000

$. *or8 in Process# Dune "# $"1" (Dob ,$)+

Direct (aterials P240,000

Direct labor 220,000
+##lied *actory oer!ead 220,000
or i$ #rocess, '$e 30 P680,000

Or"

or in "ro#ess
Gala$ce, '$e 1 P 80,000 P1,200,000 i
c 560,000
d 620,000
! 620,000
1,880,000 1,200,000
Gala$ce, '$e 30 P680,000

36
 37

Problem 1-10
 $enn" 'om!"n
 /t"tement o( 'ost o( oods /old 
e"r %nded 0ecember 31, 2&1&

Direct (aterials 'sed"

a- (aterials i$e$tory, a$ 1 P
 Iet #'rc!ases P400,000 % P4,200 395,800
+ailable *or 'se 395,800
a- (aterials i$e$tory, Dec. 31 24,000 P371,800
Direct labor 180,000
Factory oer!ead"
Factory (ai$te$a$ce P38,400
Factory #o-er a$d !eat 19,400
/$s'ra$ce 4,800
De#reciatio$ 17,500
Factory s'#eri$te$de$ce 100,000
/$direct labor 20,000
Factory s'##lies 22,400 222,500
Ma$'*act'ri$) cost 774,300
or i$ #rocess, a$. 1 84,000
ost o* )oods #laced i$ #rocess 858,300
or i$ #rocess, Dec. 31 30,000
ost o* )oods (a$'*act'red 828,300
Fi$is!ed )oods i$e$tory, a$. 1 37,500
oods aailable *or sale 865,800
Fi$is!ed )oods i$e$tory, Dec.31 40,000
ost o* )oods sold P825,800

Problem 1-1
 $enn ncor!or"ted 
/t"tement o( 'ost o( oods +"nu("ctured "nd /old 
 +onth %nded +" 31, 2&1&

Direct (aterials 'sed"

/$e$tory, +#ril 30, 198 P28,000
P'rc!ases P510,000 C P15,000 525,000
+ailable *or 'se 553,000
/$e$tory, May 31, 198 23,000 P 530,000
Direct labor 260,000
Factory oer!ead
/$direct labor P 90,000
Pro#erty ta 60,000
/$s'ra$ce 60; 12,000
De#reciatio$ 50,000
tilities 108,000 320,000
Factory cost 1,110,000
or i$ #rocess i$e$tory, +#ril 30, 198 150,000
ost o* )oods #laced i$ #rocess 1,260,000

37
 38

or i$ #rocess i$e$tory, May 31, 198 130,000

ost o* )oods (a$'*act'red P1,130,000
Problem 1  1!

1. Dournal Entries+

a Materials 136,000

+cco'$ts #ayable 136,000

b Factory #ayroll 180,000

Payroll #ayable 180,000

c Ma$'*act'ri$) oer!ead co$trol 158,500

+cco'$ts #ayable 158,500

d or i$ #rocess 105,500

Ma$'*act'ri$) oer!ead co$trol 15,500
Materials 121,000

e or i$ #rocess 156,000

Ma$'*act'ri$) oer!ead co$trol 24,000
Factory #ayroll 180,000

* or i$ #rocess 195,000

+##lied *actory oer!ead 195,000

) Fi$is!ed )oods 394,400

or i$ #rocess 394,400

 Job 802 Job 811 Job 81

or i$ #rocess, May 1 P 11,500 P 13,900 P 
'rre$t costs"
Direct (aterials 14,000 24,000 34,000
Direct labor 64,000 32,000 24,000
+##lied FO 80,000 40,000 45,000
otal costs P169,500 P109,900 P115,000

! as! 412,500

@ales 412,500

ost o* )oods sold 308,200

Fi$is!ed )oods 308,200
ob 809 P169,500
ob 810 28,800
ob 811 109,900
otal P308,200

i O#erati$) e#e$ses 74,500

as! 74,500

38
 39

 Problem 1-1, continued:

2. ono +"nu("cturing 'or!or"tion

 /t"tement o( 'ost o( oods +"nu("ctured 
 +onth %nded +" 31, 2&1&

Direct (aterials 'sed"

Materials i$e$tory, May 1 P 45,500
P'rc!ases 136,000
+ailable *or 'se 181,500
Less" Materials i$e$tory, May 31@& P60,500
/$direct (aterials 'sed 15,500 76,000 P105,500
Direct labor 156,000
+##lied *actory oer!ead 195,000
Factory cost 456,500
or i$ #rocess i$e$tory, May 1 25,400
otal cost o* )oods #laced i$ #rocess 481,900
or i$ #rocess i$e$tory, May 31 ob 813 87,500
ost o* )oods (a$'*act'red P394,400

3.  ono +"nu("cturing 'or!or"tion

 ncome /t"tement 
 +onth %nded +" 31, 2&1&

  @ales P412,500
ost o* )oods sold"
Fi$is!ed )oods i$e$tory, May 1 P 28,800
ost o* )oods (a$'*act'red 394,400
oods aailable *or sale 423,200
Fi$is!ed )oods i$e$tory, May 31, ob 812 115,000 308,200
ross #ro*it 104,300
O#erati$) e#e$ses 74,500
 Iet #ro*it P 29,800

,. che%ule of n2entor/ balances# Ma/ 1# $"1"+

Materials i$e$tory P 60,500

or i$ #rocess i$e$tory ob 813"
Direct (aterials P33,500
Direct labor 24,000
+##lied *actory oer!ead 30,000 87,500
Fi$is!ed )oods i$e$tory ob 812"
Direct (aterials P34,000
Direct labor 36,000
+##lied *actory oer!ead 45,000 115,000

'. P1&#"", t!is is $ot re#orted i$ t!e *i$a$cial state(e$ts.

39
 40

Problem 1-1&

(1) Materials Control account balance# April "+

Materials o$trol bala$ce, +#ril 1 P 2,750
a- (aterials #'rc!ased d'ri$) +#ril 11,500
Direct (aterials 'sed  9,705
/$direct (aterials 'sed  2,790
Materials o$trol bala$ce, +#ril 30 P 1,755

or in Process "ccount b"l"nce, !ril 3&:

or i$ #rocess, +#ril 1"
ob 202 P4,700
ob 203 3,280
ob 204 4,160 P12,140
P't i$to #rocess d'ri$) +#ril"
Direct (aterials P 9,705
Direct labor 9,500
+##lied *actory oer!ead P16:!r 7,600 26,805
otal cost o* )oods #laced i$ #rocess P38,945
Fi$is!ed )oods"
ob 202 P9,550
ob 204 6,930
ob 205 6,280
ob 207 5,870 28,630
or i$ #rocess, +#ril 30S
ob 203 P6,535
ob 206 3,780 P10,315

 /u!!orting 'om!ut"tions:

 Job 0 Job 0$ Job 0/ Job 05 Job 06 Job 07 
or i$ #rocess, +#ril 1 P4,700 P3,280 P4,160 P  P  P 
'rre$t costs"
Direct (aterials 1,250 555 970 2,500 1,980 2,450
Direct labor 2,000 1,500 1,000 2,100 1,000 1,900
+##lied FO P16:DLN 1,600 1,200 800 1,680 800 1,520
otal cost P9,550 P6,535 P6,930 P6,280 P3,780 P5,870

($) or i$ #rocess ob 202 4,850

Materials co$trol 1,250
Payroll 2,000
+##lied *actory oer!ead 1,600

Fi$is!ed )oods ob 202 9,550

or i$ #rocess 9,550

+cco'$ts receiable 14,325

@ales P9,550  150; 14,325

ost o* )oods sold 9,550

Fi$is!ed )oods 9,550

40
 41

() Direct (aterials 'sed P 9,705

Direct labor 9,500
+##lied *actory oer!ead 7,600
Factory cost 26,805
or i$ #rocess, +#ril 1 12,140
or i$ #rocess, +#ril 30 10,315
ost o* )oods (a$'*act'red P28,630

(,) +##lied *actory oer!ead P 7,600

+ct'al *actory oer!ead"
De#reciatio$ P1,375
/$direct labor 2,500
Factory re$t a$d 'tilities 2,700
/$direct (aterials 'sed 2,790 9,365
$dera##lied oer!ead P1,765

(') @ales P24,280 >  150; P36,420

ost o* )oods sold "
Fi$is!ed )oods, +#ril 1 ob 201 P 8,450
ost o* )oods (a$'*act'red 28,630
Fi$is!ed )oods, +#ril 30 obs 204 T 207 12,800
ost o* )oods sold at $or(al 24,280
$dera##lied oer!ead 1,765 26,045
ross #ro*it P10,375

> ob 201 P 8,450

ob 202 9,550
ob 205 6,280
  otal P24,280

Problem 1-$"

(1)
 Job 0/ Job 05 Job 06 Job 07 
or i$ #rocess, Marc! 1 P50,460 P118,060 P124,101 P 
ost added t!is (o$t!"
Direct (aterials 9,480 11,320 10,490 22,440
Direct labor 26,844 22,750 28,920 20,370
+##lied *actory oer!ead 7,717.65 7,475 8,314.50 6,693
otal cost P94,501.65 P159,605 P171,825.50 P 49,503

($) +##lied *actory oer!ead P 30,200.15

+ct'al *actory oer!ead 40,941.87
$dera##lied *actory oer!ead t!is (o$t! 10,741.72 dr
Oera##lied *actory oer!ead, Marc! 1 12,300.00 cr
Oera##lied *actory oer!ead re(ai$i$) i$ FO co$trol P 1,558.28 cr

41
 42

 Problem 1-2&, 'ontinued:

() *or8 in process# March 1+

ob 205 P159,605.00

ob 206 171,825.50
ob 207 49,503.00
otal P380,933.50

(,) Cost of oo%s manufacture%+

or i$ #rocess, Marc! 1 P292,621.00

ost added t!is (o$t!"
Direct (aterial P53,730.00
Direct labor 98,884.00
+##lied *actory oer!ead 30,200.15 182,814.15
otal costs 475,435.15
or i$ #rocess, Marc! 31 3 380,933.50
ost o* )oods (a$'*act'red ob 204 P 94,501.65

Problem 1-$1
8"nn 'om!"n
 /t"tement o( 'ost o( oods +"nu("ctured "nd /old 
e"r %nded 0ecember 31, 2&1&

Direct (aterials 'sed"

Materials i$e$tory, a$. 1 P 15,000
P'rc!ases 1 100,000
+ailable *or 'se 115,000
Materials i$e$tory, Dec. 31 23,000
Materials 'sed 92,000
/$direct (aterials s&'ee=e 12,000 P 80,000
Direct labor 5 100,000
+##lied *actory oer!ead 6 150,000
Factory cost 330,000
or i$ #rocess, a$. 1 20,000
otal cost o* )oods #laced i$ #rocess 350,000
or i$ #rocess, Dec. 31 4 30,000
ost o* )oods (a$'*act'red 320,000
Fi$is!ed )oods i$e$tory, a$. 1 80,000
oods aailable *or sale 400,000
Fi$is!ed )oods i$e$tory, Dec. 31 3 37,000
ost o* )oods sold at $or(al 363,000
Oera##lied *actory oer!ead 7 3,000
ost o* )oods sold at act'al 2 P360,000

42
 43

 Problem 1-21, continued:

(1) +cco'$ts #ayable, Dec. 31 P 5,000

Pay(e$t o* acco'$ts #ayable 102,000
+cco'$ts #ayable, a$. 1 7,000
P'rc!ases o* (aterials P100,000

($) +cco'$ts receiable, Dec. 31 P 65,000

ollectio$s o* acco'$ts receiable 480,000
+cco'$ts receiable, a$. 1 45,000
@ales P500,000
ost ratio 72;
ost o* )oods sold at act'al P360,000

() ost o* )oods sold at act'al P360,000

Oera##lied *actory oer!ead 3,000
ost o* )oods at $or(al 363,000
oods aailable *or sale 400,000
Fi$is!ed )oods i$e$tory, Dec. 31 P 37,000

(,) Materials P 10,000

Direct labor 8,000
+##lied *actory oer!ead 150;  P8,000 12,000
or i$ #rocess i$e$tory, Dec. 31 P 30,000

(') ost o* )oods (a$'*act'red P320,000

or i$ #rocess i$e$tory, Dec. 31 30,000
or i$ #rocess i$e$tory, a$. 1 20,000
Factory cost 330,000
Direct (aterials 'sed 80,000
o$ersio$ cost 250,000
Direct labor cost  100,000
+##lied *actory oer!ead 150; P150,000

(0) +##lied *actory oer!ead P150,000

+ct'al *actory oer!ead"
/$direct (aterials 'sed P 12,000
/$direct labor "
+ccr'ed #ayroll, 12:31 P 14,000
Pay(e$t 172,000
+ccr'ed #ayroll, 1:1  11,000
Payroll 175,000
Direct labor 100,000
/$direct labor P 75,000
Misc. *actory oer!ead P 60,000 147,000
Oera##lied *actory oer!ead P 3,000

43
 44

Problem 1-$$

1. Direct (aterials P396,000 % P12,000 P 384,000

Direct labor 248,000
+##lied *actory oer!ead P50  2,800 DL !o'rs 140,000
otal cost o* ProJect Io. 27 P 772,000

$. @ales P1,400,000
ost o* )oods sold 772,000
ross #ro*it 628,000
@elli$) a$d ad(i$istratie e#e$ses 140,000
 Iet #ro*it P 488,000

Proble( 123

1. +cco'$ts #ayable, May 31 P 12,000

Pay(e$t o* acco'$ts #ayable 78,000
+cco'$ts #ayable, May 1  10,000
P'rc!ases o* (aterials P 80,000

$. ost o* )oods sold P165,000

Fi$is!ed )oods i$e$tory, May 31 7,000
Fi$is!ed )oods i$e$tory, May 25,000
ost o* )oods co(#leted d'ri$) May P147,000

. Mac!i$e !o'rs 1,000 !o'rs

Predeter(i$ed oer!ead rate P750,000 : 15,000 !o'rs P50
+##lied *actory oer!ead P 50,000

,. Direct (aterials P 2,000

Direct labor 1,000
+##lied *actory oer!ead P50  30 (ac!i$e !o'rs 1,500
or i$ #rocess, May 31 P 4,500

'. ost o* )oods (a$'*act'red P147,000

or i$ #rocess, May 31 4,500
or i$ #rocess, May 1 2,000
Factory cost 149,500
Direct labor 940 DL !o'rs  P25 23,500
+##lied *actory oer!ead 50,000
Direct (aterials 'sed P 76,000

0. Direct (aterials 'sed P 66,000

Direct (aterials co$trol, May 31 20,000
Materials #'rc!ased 80,000
Direct (aterials co$trol, May 1 P 6,000

. +##lied *actory oer!ead P 50,000

+ct'al *actory oer!ead 55,000

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$dera##lied *actory oer!ead P 5,000

Problem 1-$,

 /chedule o( 'ost o( oods /old 

Materials i$e$tory, 'ly 1 P 20,000

P'rc!ases 65,000
+ailable *or 'se 85,000
Less" Materials i$e$tory, 'ly 31 P15,000
/$direct (aterials 'sed 20,000 35,000
Direct (aterials 'sed 50,000
Direct labor 200,000
Factory oer!ead 100,000
Factory cost 350,000
or i$ #rocess i$e$tory, 'ly 1 7,000
otal 357,000
or i$ #rocess i$e$tory, 'ly 31 11,000
ost o* )oods (a$'*act'red 346,000
Fi$is!ed )oods i$e$tory, 'ly 1 34,000
oods aailable *or sale 380,000
Fi$is!ed )oods i$e$tory, 'ly 31 30,000
ost o* )oods sold P350,000

'om!ut"tions:

1. P50,000
2. P200,000
3. P100,000
4. P346,000
5. P350,000

6. +cco'$ts #ayable, 'ly 1 P 18,000

Materials #'rc!ases 65,000
+cco'$ts #ayable, 'ly 31  6,000 
Pay(e$ts o* acco'$ts #ayable P 77,000

7. +cco'$ts receiable, 'ly 1 P 54,000

@ales o$ acco'$t 500,000
+cco'$ts receiable, 'ly 31  22,000 
ollectio$s o* acco'$ts receiable P532,000

8. +ccr'ed #ayroll, 'ly 1 P 13,000

Payroll *or 'ly 255,000
+ccr'ed #ayroll, 'ly 31  9,000 
Pay(e$t o* #ayroll P259,000

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