This document contains examples and problems related to cost accounting concepts. It addresses direct and indirect costs, fixed and variable costs, product and period costs. It provides multiple choice and true/false questions related to classifying and calculating costs. Several of the problems involve calculating total, variable, and fixed costs for manufacturing departments or companies.
This document contains examples and problems related to cost accounting concepts. It addresses direct and indirect costs, fixed and variable costs, product and period costs. It provides multiple choice and true/false questions related to classifying and calculating costs. Several of the problems involve calculating total, variable, and fixed costs for manufacturing departments or companies.
Original Description:
Solution Manual for Cost Accounting by De Leon (2015)
This document contains examples and problems related to cost accounting concepts. It addresses direct and indirect costs, fixed and variable costs, product and period costs. It provides multiple choice and true/false questions related to classifying and calculating costs. Several of the problems involve calculating total, variable, and fixed costs for manufacturing departments or companies.
This document contains examples and problems related to cost accounting concepts. It addresses direct and indirect costs, fixed and variable costs, product and period costs. It provides multiple choice and true/false questions related to classifying and calculating costs. Several of the problems involve calculating total, variable, and fixed costs for manufacturing departments or companies.
Direct materials Manufacturing overhead Direct materials Direct labor Manufacturing overhead Manufacturing overhead Direct materials Manufacturing overhead Manufacturing overhead Manufacturing overhead
1. TOTAL PRODUCT CST = 220,000 + 180,000 + 138,500
2. TOTAL PERIOD COST = 104,000 + 260,000 3. COST PER UNIT = 538,500/ 40,000 units
57,000 47,000 10,000 250,000
= P 13,4625 Problem 4 Bug Company 1. Variable Inventoriable 2. Variable Inventoriable 3. Fixed Inventoriable 4. Variable Inventoriable 5. Variable Inventoriable Inventoriable
6. Variable Period 7. Variable Inventoriable 8. Variable Period 9. Fixed Period 10. Variable
Problem 5 Mighty Muffler, Inc.
a. P 50,000 b. P 50,000 c. P 60,000 500 d.
= P120/muffler x 400 = P 48,000
P 120 x 800 = P 96,000
e.
P 50,000 + P 48,000 = P 98,000
f.
P 50,000 + P 96,000 = P 146,000
g.
P 50,000/ 400
h.
P 50,000/500 = P 100
I,
P 50,000/800 = P
= P 125
62.50
j.
P 48,000/400 = P 120
k.
P 60,000/500 = P 120
l.
P 96,000/800 = P 120
m. P 125 + P 120
= P 245
n.
P 100 + P 120
= P 220
o.
= P 182.50
62.50 + P 120
Problem 6 Marvin Desk
1. 2. 3. 4. 5. 6.
DM OH OH OH DL OH
8. 9. 10. 11. 12. 13,
OH OH DL OH OH OH
7. OH
14. OH 15. DM
Problem 7 Mother Goose Company
1. Prime costs
530,000
2. Conversion cost
575,000
3 Inventoriable cost
860,000
4. Total period costs
305,000
Problem 8 - Blanche Corporation
`
1. Direct materials used
Direct labor Variable manufacturing overhead Variable marketing Total variable cost per unit X No. of units produced and sold Total variable costs per month 2. DM DL 20.00 V manufacturing Variable cost per unit produced 3. Total variable mfg. cost ( 67 x12,000) Total fixed mfg,cost (6 x 12,000) Total manufacturing cost 4. Mfg. cost/unit (876,000/12,000)
P 32.00 20.00 15.00 3.00 70.00 12,000 P 840,000 32.00
15.00 P
804,000 72,000 876.000 73.00
Problem 9 1. Direct materials P 60.00 Direct labor 30.00 Variable manufacturing overhead 9.00 Total variable manufacturing cost per unit P 99.00 `
2. Total variable manufacturing cost per unit
Variable marketing and administrative
67.00
P 99.00 6.00
Total variable costs per unit
105.00
3.
Total variable manufacturing cost per unit
Fixed manufacturing overhead (30,000/1,200) Full manufacturing cost per unit
P 99,00 25.00 124.00
4.
Full manufacturing cost per unit
Variable marketing and administrative Fixed marketing and administrative Full cost to make and sell per unit
124.00 6.00 20.00 150.00
Problem 10 Westinghouse Company
1. Variable cost/machine hour = 60,000 39,000
=
6,000 -
3,000
21,000 3,000 =
High P60,000
2. Total monthly cost
Less Variable 6,000 x 7 3,000 x 7
7.00/machine hr.
Low P 39,000
42,000
21,000 Fixed cost
P 18,000
P 18,000
3. Total electricity cost = Fixed cost + Variable (capacity)
= =
18,000 + 7(4,800) 51,600
Problem 11 Johnson Corporation
1. Variable cost per machine hour =
35,600 20,000 4,000 - 2,000 = 7.80 per machine hour
2. 4,000 hours 2000 hours Total electricity expense 35,600 20,000 Less: Variable costs ( 4,000 x 7.80) 31,200 ( 2000 x 7.80) ______ 15,600 Fixed cost 4,400 4,400
