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    Cost Accounting - Chapter 3 Cost

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    This document contains 10 accounting problems related to cost accounting cycles. It provides journal entries, calculations of costs of goods manufactured and sold, and multiple choice questions. The problems calculate direct materials, direct labor, factory overhead, work in process, finished goods, and cost of goods sold for various manufacturing companies. They also include income statements and calculations of unit costs, prime costs, conversion costs and period costs.

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    Cost Accounting - Chapter 3 Cost

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    This document contains 10 accounting problems related to cost accounting cycles. It provides journal entries, calculations of costs of goods manufactured and sold, and multiple choice questions. The problems calculate direct materials, direct labor, factory overhead, work in process, finished goods, and cost of goods sold for various manufacturing companies. They also include income statements and calculations of unit costs, prime costs, conversion costs and period costs.

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    This document contains 10 accounting problems related to cost accounting cycles. It provides journal entries, calculations of costs of goods manufactured and sold, and multiple choice questions. The problems calculate direct materials, direct labor, factory overhead, work in process, finished goods, and cost of goods sold for various manufacturing companies. They also include income statements and calculations of unit costs, prime costs, conversion costs and period costs.

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    © All Rights Reserved
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    3K views8 pages

    Cost Accounting - Chapter 3 Cost

    Uploaded by

    xxxxxxxxx
    This document contains 10 accounting problems related to cost accounting cycles. It provides journal entries, calculations of costs of goods manufactured and sold, and multiple choice questions. The problems calculate direct materials, direct labor, factory overhead, work in process, finished goods, and cost of goods sold for various manufacturing companies. They also include income statements and calculations of unit costs, prime costs, conversion costs and period costs.

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    © All Rights Reserved
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    of 8

    CHAPTER 3 - COST ACCOUNTING CYCLE

    Problem 1 - Ram Manufacturing Company


    Direct materials used (75,000 x 90%)
    Direct labor (97,000 x 93% )
    Factory overhead (90,210 x 12%)
    Total manufacturing costs
    Work in process, January 1
    Cost of goods put into process
    Less: Work in process, January 31
    Cost of goods manufactured

    67,500.00
    90,210.00
    112,762.50
    270,472.50
    25,500.00
    295,972.50
    27,000.00
    268,972.50

    Problem 2 - Donna Company


    Direct materials used
    Materials, May 1
    Purchases
    Total available
    Less> Mat.- May 31
    Direct labor
    Factory overhead
    Total manufacturing costs
    Work in process, May 1
    Cost of goods put into process
    Less: Work in process, May 31
    Cost of goods manufactured
    Finished goods May 1
    Total goods available for sale
    Less: Finished goods May 31
    Cost of goods sold

    22,000
    100,000
    122,000
    25,000

    97,000
    80,000
    120,000
    297,000
    25,800
    322,800
    18,000
    304,800
    45,000
    349,800
    24,000
    325,800

    Problem 3 Blanche Corporation


    1, Income Statement
    Sales
    Less: Cost of goods sold
    Gross profit
    Less: Operating expenses
    Marketing
    Administrative
    Net income

    1,200,000
    751,000
    449,000
    60,000
    12,000

    72,000
    377,000

    Blanche Corporation
    2.
    Direct materials used
    Materials, March 1
    Purchases
    Total available
    Less> Mat.- March 31
    Direct labor
    Factory overhead
    Total manufacturing costs
    Work in process, March 1
    Cost of goods put into process
    Less: Work in process, March 31
    Cost of goods manufactured
    Finished goods March 1
    Total goods available for sale
    Less: Finished goods March 31
    Cost of goods sold

    Problem 4 - Roy Company


    1, Entries
    a. Materials
    Accounts payable
    b. Payroll
    Withholding taxes payable
    SSS Premiums payable
    Phil Health contributions payable
    Pag-ibig funds contributions payable
    Accrued payroll
    Work in process
    Factory overhead control
    Payroll
    c. Materials
    Accounts payable
    d. Factory overhead control
    SSS premiums payable
    Phil Health contributions payable
    Pag-ibig funds contributions payable

    50,000
    400,000
    450,000
    42,000

    408,000
    210,000
    140,000
    758,000
    100,000
    858,000
    95,000
    763,000
    90,000
    853,000
    102,000
    751,000

    120,000
    120,000
    54,000
    11,200
    2,400
    375
    1,620
    38,405
    45,000
    9,000
    54,000
    25,000
    25,000
    5,595
    3,600
    375
    1.620

    e. Work in process
    Factory overhead control
    Materials

    75,000
    14,000

    f. Accounts payable
    Materials

    1,000

    89,000

    1,000

    Page 2 Chapter 3
    g. Accounts payable
    Accrued payroll
    Cash

    136,500
    38,405
    174,905

    h. Factory overhead control


    Miscellaneous accounts

    16,900

    i. Work in process
    Factory OH Applied (45,000 x 120%)

    54,000

    16,900

    54,000

    j. Finished goods
    Work in process

    116.000
    116,000

    k. Accounts receivable
    Sales

    150,000
    150,000

    Cost of goods sold


    Finished goods

    90,000
    90,000

    2. Statement of cost of goods sold


    .
    Direct materials used
    Purchases
    Less: Purchase returns
    Total available for use
    Less> Mat.- October 31
    Direct labor
    Factory overhead
    Total manufacturing costs
    Less: Work in process, October 31
    Cost of goods manufactured
    Less: Finished goods March 31
    Cost of goods sold, normal
    Less: OA-FO
    Cost of goods sold, actual
    Problem 5 Darvin Company
    1. Entries
    a. Materials
    Accounts payable
    b. FOControl
    Accounts payable
    c. Payroll
    W/Taxes payable
    SSS Premium payable
    Phil Health contributions payable
    PFC payable
    Accrued payroll

    145,000
    1,000
    144,000
    55,000

    89,000
    45,000
    54,000
    188,000
    72,000
    116,000
    26,000
    90,000
    8,505
    81,495

    200,000
    200,000
    35,000
    35,000
    210,000
    18,520
    8,400
    1,125
    6,300
    175,655

    Page 4
    Work in process
    Factory Overhead control
    Selling expense control
    Adm. expense control
    Payroll

    140,000
    30,000
    25,000
    15,000
    210,000

    d. Accrued payroll
    Cash

    175,000

    e. FO Control
    Selling expense control
    Adm. Expense control
    SSS prem. Payable
    MC payable
    PFC payable

    14,200
    2,375
    1,350

    175,000

    10,500
    1,125
    6,300

    f. Work in process
    FO Control
    Materials

    185,000
    35,000

    g. Work in process
    FO Control

    114,200

    h. Finished goods
    Work in process

    410,000

    i. Accounts receivable
    Sales

    539,000

    Costs of goods sold


    Finished goods

    385,000

    j. Cash

    220,000

    114,200

    410,000

    539,000

    385,000
    405,000

    Accounts receivable
    k. Accounts payable
    Cash

    405,000
    220,000
    220,000

    Page 5
    2. Cost of goods sold statement
    Direct materials used
    Materials, January 1
    Purchases
    Total available
    Less> Mat.- Jan. 31
    Ind. Materials
    Direct labor
    Factory overhead
    Total manufacturing costs
    Work in process, January 1
    Cost of goods put into process
    Less: Work in process, January 31
    Cost of goods manufactured
    Finished goods January 1
    Total goods available for sale
    Less: Finished goods January 31
    Cost of goods sold
    3. Income Statement
    Sales
    Less: Cost of goods sold
    Gross profit
    Less: Operating expenses
    Selling
    Administrative
    Net income
    4 Balance sheet
    Cash
    Accounts receivable
    Finished goods
    Work in process
    Materials

    110,000
    194,000
    60,000
    47,200
    30,000

    Total

    _______
    441,200

    Problem 6
    1.
    Cost of goods manufactured
    Work in process, December 31
    Cost of goods put into process
    Total manufacturing costs
    Work in process, January 1

    50,000
    200,000
    250,000
    30,000
    35,000

    65,000

    185,000
    140,000
    114,200
    439,200
    18,000
    457,200
    47,200
    410,000
    35,000
    445,000
    60,000
    385,000

    539,000
    385,000
    154,000
    27,375
    16,350

    43,725
    110,275

    Accounts payable
    Accrued payroll
    W/tax payable
    SSS Prem. payable
    Medicare Cont. payable
    PFC payable
    Common stock
    Retained earnings

    25,000
    8,655
    18,520
    18,900
    2,250
    12,600
    200,000
    155,275
    441,200

    800,000
    87,000
    887,000
    ( 790,000)
    97,000

    Page 6
    2.
    Cost of goods manufactured
    Finished goods, January 1
    Total goods available for sale
    Cost of goods sold
    Finished goods, December 31
    4.

    Direct materials used


    Materials, December 31
    Total available for sale
    Materials, January 1
    Materials purchased

    Problem 7 Kyle Manufacturing Company


    1.
    Direct materials used ( 300.000 x 75%)
    Direct labor (350,000 x 60%)
    Factory overhead actual
    Indirect materials (300,000 x 25%)
    75,000
    Indirect labor (350,000 x 40%)
    140,000
    Heat, light, and water
    120,000
    Depreciation
    75,000
    Property taxes
    65,000
    Repairs and maintenance
    40,000
    Total manufacturing costs/cost of goods manufactured
    2,
    3.
    4.
    5

    800,000
    80,000
    880,000
    (750,000)
    130,000
    590,000
    150,000
    740,000
    (100,000)
    640,000

    225,000
    210.000

    515,000
    950,000

    Unit cost = 950,000/125,000 = P7.60 per unit


    Prime cost = 225000 + 210,000 = P 435,000
    Conversion cost = 210,000 + 515,000 = P 725,000
    Period cost = 80,000 + 50,000 = P 130,000

    Problem 8 - Norman Company


    1,
    Materials, October 1
    Purchases
    Materials, October 31
    Direct materials used
    Direct labor
    Factory overhead (80,000 = 12,500 x 8.00)
    6,40
    Total manufacturing costs

    48,000
    112,000
    (40,000)
    120,000
    80,000
    100,000
    300,000

    2.

    Total manufacturing costs


    Work in process, Oct. 1
    Work in process, Oct. 31
    Cost of goods manufactured

    300,000
    24,000
    ( 16,000)
    308,000

    3.

    Cost of goods manufactured


    Finished goods, Oct. 1
    Finished goods, Oct. 31
    Cost of goods sold

    308,000
    72,000
    ( 80,000)
    300,000

    Page 7
    4.
    Sales
    Cost of goods sold
    Marketing and administrative expenses
    Net income
    Problem 9 Janice Company
    1,
    Sales (50,000/10%)
    Selling & administrative expenses
    Net income
    Cost of goods sold

    400,000
    ( 300,000)
    ( 40,000)
    60,000

    500,000
    ( 50,000)
    ( 50,000)
    400,000

    2.

    Cost of goods sold


    Finished goods, March 31
    Finished goods, March 1
    Cost of goods manufactured

    400,000
    180,000
    ( 120,000)
    460,000

    3.

    Cost of goods manufactured


    Work in process, March 31
    Work in process, March 1
    Total manufacturing costs
    Factory overhead
    Direct labor (126,000/75%)
    Direct materials used
    Materials, March 31
    Purchases
    Materials, March 1

    460.000
    100,000
    ( 90,000)
    470,000
    (126,000)
    (168,000)
    176,000
    20,000
    (100,000)
    96,000

    Problem 10 - Selina Corporation


    1.
    Cost of goods manufactured
    Work in process, December 31
    Cost of goods put into process

    2.
    3.

    1,700,000
    500,000
    2,200,000

    Cost of goods manufactured + WP, end = TMC + WP, beg


    1700,000 + X
    = 1,800,000 + .80X
    X - .80X
    = 1,800,000 1,700,000
    X
    = 100,00/.20
    = 500,000
    WP, Dec. 31 = 500,000
    Total manufacturing cost
    Factory overhead ( (1,800,000 x 25% )
    Direct labor (450,000/72%)
    Direct materials used

    Problem 11 - Kyra Alexis Corporation


    1.
    Materials put into process
    Materials, Aug. 31
    Materials, Aug. 1
    Materials purchased

    1,800,000
    ( 450,000)
    ( 625,000)
    725,000

    120,000
    75,000
    ( 60,000)
    135,000

    Page 8
    2.
    Materials put into process
    Direct labor ( 70,000 + 80,000)
    Factory overhead - A (70,000 x 120%)
    B ( 80,000 x 80%)
    Total manufacturing cost

    120,000
    150,000
    84,000
    64,000

    148,000
    418,000

    3.

    Total manufacturing cost


    Work in process, Aug. 1
    Work in process, Aug. 31
    Cost of goods manufactured

    418,000
    80,000
    ( 64,000)
    434,000

    4.

    Cost of goods manufactured


    Finished goods, Aug. 1
    Finished goods, Aug. 31
    Cost of goods sold

    434,000
    54,000
    ( 60,000)
    428,000

    Multiple choice
    1. A
    2. C
    3. B
    4. A
    5. D
    6. B
    7. D
    8 C
    9. B
    10.B

    11.
    12.
    13.
    14.
    15.
    16.
    17.
    18.
    19
    20.

    B
    C
    B
    C
    C
    D
    B
    B
    B
    B

    21.
    22.
    23.
    24.
    25.
    26.
    27.
    28.
    29.
    30.

    B
    D
    A
    B
    116,000
    A (No. 5 should be 73%
    D
    A
    A
    B

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