1
CHAPTER 9
Answers to Multiple Choice – Theoretical
1. 2. ". $. %.
c b a a a
6. 7. #. 9. 1&.
b b c b !
11. 12 1". 1$. 1%.
b ! b b a
'olutions to Multiple Choice – Co(putationa Co(putationall 1.
2.
)a*
Total manufacturing cost: (2,200 units x P56) Less: co c ost of spoiled units (200 units x P56) ost of good units
P123,200 11,200 P112,000
+nit cost, )P112&&& - 2&&& oo! units*
P
!anufacturing cost: (P ( P56 " P1) x 2,200 # Less: $crap %alue of spoiled units ost of good units
P121,000 6,000 P115,000
+nit cost, )P11%&&& - 2&&& oo! units*
P %7.%& )2*
%6 )1*
)!*
Charged to Specific Job: &irect materials &irect la'or !anufacturing o%eread (P00 x 150*) !anufacturing cost
P 660 00 1,200 P2,660
+nit cost, )P266& - 2&& units*
P1"."&
Due to internal failure: !anufacturing cost +dd: e-or. cost &irect materials &irect la'or /%eread (P160 x 150*) Total cost after re-or. cost +nit cost, )P"16& - 2&& units*
P2,660 P100 160 20
500 P3,160 P1%.#&
2 ".
)!*
$.
)a*
%.
)c *
Charged to specific job: &irect materials: (,000 units x P5) &irect la'or: (,000 units x P) !anufacturing o%eread: (,000 units x P3) !anufacturing costs Less: $crap %alue (600 x P) !anufacturing cost net of scrap %alue
P0,000 32,000 2,000 P6,000 ,200 P1,00
+nit cost, )P91#&& - 7$&& oo! units*
P 12 12.$1
Charged to all production: &irect materials &irect la'or !anufacturing o%eread: (,000 units x P350) !anufacturing cost Less: ost of spoiled units (600 x P1250) !anufacturing cost of good units
P 0,000 32,000 2,000 P100,000 1,500 P ,500
+nit cost, )P9#%&& - 7$&& oo! units* 6.
P
)b*
Charged to LGU Machine Works: &irect materials: (1,000 x P350) &irect la'or: (2,000 x P125) /%eread: (P2,500 x 10*) !anufacturing cost e-or. cost: &irect materials: (100 x P015) &irect la'or: (100 x P025) /%eread: (P25 x 10*) Total manufacturing cost
P ,000 2,500 3,500 P13,000 P15 25 35
5 P13,05
+nit cost, )P )P1"&7% - 2&&& units*
P6.%"7%
Charged to Factor !"erhead Control: &irect materials &irect la'or /%eread: (P2,500 x 150*) !anufacturing cost
P ,000 2,500 3,50 P13,250
+nit cost, )P1"2%& - 2&&& *
P6.62%&
12.%&
3 7.
)a*
#.
)b*
9.
)!*
1&.
11.
12.
&irect materials (25 x P0) &irect la'or (25 x P1) /%eread (P,50 x 100*) Total Less: $crap %alue (2 x P00) !anufacturing cost of 23 units
P 2,000 ,50 ,50 P11,00 00 P10,00
+nit cost, )P1&9&& - 2"*
P$7".91
)b*
&irect materials &irect la'or /%eread Total Less: os ost of spoilage: ( P P,565 4 2,200) x 200 units !anufacturing cost of 2,000 units
P26,51 15,06 ,53 P,565 ,506 P5,05
nit cost: (P5,05 4 2,000)
P 2253
)b*
&irect materials (P5 x 250) &irect la'or (P6 x 5,260 &L) +pplied o%eread (P2 x 5,260 &L) Total Less: ost of spoilage (P65,30 4 250) x 10 !anufacturing cost of 20 units
P23,50 31,560 10,520 P65,30 2,633 P63,1
+nit cost, )P6"197 - 2$&*
P26"."2
)!*
&irect materials &irect la'or /%eread (P12,5004P250) x P150 Total e-or. cost (P100 7 P125 7 P5) $ales %alue of spoiled units (1,000 x P) !anufacturing cost of ,000 units
P30,000 12,500 ,500 P50,000 300 (0,000) P6,300
+nit cost, )P$6"&& - 9&&&*
P%.1$$$
'olutions to Proble(s Proble( 9/1
1.
2.
"
$.
as4+ccounts recei%a'le /ter income
2,500
as4+ccounts recei%a'le ost of goods sold
2,500
as4+ccounts recei%a'le 8actor9 o%eread control
2,500
as4+ccounts recei%a'le or. in process in%entor9
2,500
2,500
2,500
2,500
2,500
Proble( 9/2 1
2
3
as4+ccounts recei%a'le /ter income
,000
as4+ccounts recei%a'le 8actor9 o%eread control
,000
as4+ccounts recei%a'le or. in process in%entor9
,000
!aterials in%entor9 8actor9 o%eread control
,000
or. in process in%entor9 !aterials in%entor9
,000
,000
,000
,000
,000
,000
Proble( 9/" 1.
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied factor9 o%eread #o record production cost$ $poiled goods in%entor9 (100 x P10) 8actor9 o%eread control or. in process in%entor9 (P5,00042,000)100 #o record spoilage cost$ 8inised goods in%entor9 or. in process in%entor9 #o record finished goods %&'()*** + &,)-**.
2.
nit cost: (P51,300 4 1,00 units) # P2 Proble( 9/$
5,000 2,000 10,000 20,000
1,000 1,00 2,00
51,300 51,300
5
1.
or. in process in%entor9 !aterials in%entor9 #o record production cost
20,000 20,000
$poiled goods in%entor9 (200 x P100) or. in process in%entor9 #o record scrap "alue of spoiled units$ 8inised goods in%entor9 or. in process in%entor9 #o record cost of f inished goods %&,*/)*** + &,*)***. 2
20,000 20,000
1,000 1,000
nit cost: (P1,000 4 1,000 units) # P1
Proble( 9/% 1.
2.
$poiled goods in%entor9 8actor9 o%eread control or. in process in%entor9 #o record spoilage$
1,200 1,600
$poiled goods in%entor9 8actor9 o%eread control or. in process in%entor9 #o record spoilage$
2,500 300
+ccounts recei%a'le $poiled goods in%entor9 #o record the offer of scrap dealer$
2,500
2,00
2,00
2,500
Proble( 9/6 Entr0 o. 1,
;f spoiled units are due to customers exacting specifications
Entr0 o. 2 :
;f spoiled spoiled unit unitss are due due to intern internal al failur failure4e e4empl mplo9e o9ee< e
Entr0 o. " :
;f cost cost of spoi spoile led d units units is unre unreco co%e %era ra'l 'le e Tis Tis is an a'no a'norm rmal al loss loss car carge ged d immediatel9 to operations
Entr0 o. $ :
;f spoilag spoilagee is tracea tracea'le 'le to to a particu particular lar =o' =o' and te te loss is reco reco%e %era' ra'le le from from te customer or from te insurance compan9
Proble( 9/7
6
1a
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied factor9 o%eread #o record 0anufacturing cost
10,000 2,000 2,000 60,000
$poiled goods in%entor9 (00 x P15) 8actor9 o%eread control or. in process in%entor9 To record cost of spoilage: (P10,000410,000) x 00 8inised goods in%entor9 or. in process in%entor9 #o record cost of f inished goods %&1/*)*** + &-),**. 1b
nit cost: (P (P12,00 4 ,600 units) #
2a.
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied factor9 o%eread #o record 0anufacturing cost$
,200
12,00 12,00
P1
10,000 2,000 2,000 60,000
$poiled goods in%entor9 or. in process in%entor9 #o record cost of s poiled goods %(** 2 &1'.
2b.
6,000 1,200
6,000 6,000
8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$
1,000
as4+ccounts recei%a'le $ales #o record sales %&1-()*** 2 1(*3.
23,600
ost of goods sold 8inised goods in%entor9 #o record cost of goods sold$
1,000
nit nit cost cost:: (P1 (P1, ,00 000 0 4 ,60 ,600 0 unit units) s) #
1,000
23,600
1,000
P1 P112 125 5
Proble( 9/#
1.
2.
$poiled goods in%entor9 8actor9 o%eread control or. in process in%entor9 #o record cost of s poiled units %&(** 2 &($'*.
1,00 1,00
+ccounts recei%a'le $poiled goods in%entor9 #o record sales of scrap$
1,100
3,600
1,100
Proble( 9/9 1.
8actor9 o%eread control or. in process in%entor9 #o record cost destroed units$
1,200 1,200
nit cost of te remaining 2,300 cases is P6 2.
"a.
b.
$a.
b.
%.
$poiled goods in%entor9 8actor9 o%eread control or. in process in%entor9 #o record sal"age "alue of defecti"e units$
200 1,000
+ccounts recei%a'le or. in process in%entor9 #o record cost of defecti"e cases chargeable to custo0er$
1,200
8actor9 o%eread control or. in process in%entor9 #o record cost of defecti"e units charged to production$
1,200
1,200
1,200
1,200
$poiled goods in%entor9 +ccounts recei%a'le or. in process in%entor9 #o record sal"age "alue of defecti"e units$
00 00
$poiled goods in%entor9 8actor9 o%eread control or. in process in%entor9 #o record sal"age "alue of defecti"e units$
00 00
8actor9 o%eread control !aterials in%entor9 #o record rejected units charged to o"erhead$
200
1,200
1,200
200
+%erage unit cost is P6.&& 6.
or. in process in%entor9 !aterials in%entor9 #o record cost of rejected units charged to a particular job$
200
+%erage unit cost: (2,500 x P6) 7 P200 # P15,200 4 2,500 2,500 # P6.&# 7
$ame
200
Proble( 9/1&
1.
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread #o record 0anufacturing cost$
13,600 ,000 3,000 3,600
!anufacturing o%eread control !aterials in%entor9 (200 x P150) Pa9roll (15460 x P10 x 200) +pplied o%eread (15460 x P12 x 200) #o record re4ork cost$ 8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$
2.
nit cost: (P13,600 (P13,600 4 200 units) #
1,00 300 500 600
13,600 13,600
P6
Proble( 9/11
1.
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread #o record 0anufacturing cost$
130,000 0,000 30,000 60,000
or. in process in%entor9 !aterials in%entor9 (1,000 x P1) Pa9roll (10460 x P15) x 1000 +pplied o%eread (10460 x P30) x 1,000 #o record re4ork cost$ 8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$
2.
nit nit cost cost:: (P13 (P13, ,50 500 0 4 2,0 2,000 00 unit units) s) #
,500 1,000 2,500 5,000
13,500 13,500
P6 P620 20
Proble( 9/12
1a
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread #o record 0anufacturing cost$
00,000 1,000 2,000 1,000
!anufacturing o%eread control !aterials in%entor9 (200 units x P) Pa9roll : (30460 x P12) x 200 +pplied o%eread: (30436 x P2) x 200 #o record re4ork cost$ 8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$ b
2a.
nit nit cost cost:: (P0 (P00 0,000 ,000 4 2,000 ,000 unit units) s) #
00,000
P2&&
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread #o record 0anufacturing cost$
00,000 1,000 2,000 1,000
,00 00 1,200 2,00
8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$ nit cost: (P0,00 4 2,000 units) #
00 1,200 2,00
00,000
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread #o record re4ork cost$
b.
,00
0,00 0,00
P2&2.2&
10
Proble( 91"
1a
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread (P3,500 x 160*) #o record 0anufacturing cost$ !anufacturing o%eread control !aterials in%entor9 Pa9roll +pplied o%eread #o record re4ork cost$
2a.
nit cost: (P1,100 4 2,000 units) #
30 5 2
1,100 1,100
P#.%%
or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread (P3,500 x 150*) #o record 0anufacturing cost$ or. in process in%entor9 !aterials in%entor9 Pa9roll +pplied o%eread (P5 x 150*) #o record re4ork cost$ 8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$
b.
,000 3,500 5,600
1
8inised goods in%entor9 or. in process in%entor9 #o record cost of finished goods$ b.
1,100
nit cost: (P16,250 4 2,000 units) # P#.
%$16,50 ,000 3,500 5,250
1250 30 5 650
16,250 16,250
11
Proble( 9/1$ a.
Predetermined o%eread rate: rate: (P62,500 4 50,000 50,000 macine rs ) P9.2% per ! &irect materials &irect la'or +pplied o%eread (1,50 x P25) Total cost of >o' 220
b.
Te re-or. cost is de'ited to te manufacturing o%eread control account since te compan9 uses a predetermined predetermined rate to appl9 appl9 o%eread Te entr9 is: Manufacturing o"erhead control control 6arious accounts
c.
!.
P33,550 ,5 1,25 P36,60
Predete Predetermi rmined ned o%ere o%eread ad rate: rate:
5-)-'* 5-)-'* (P25, (P25,000 000 4 50,0 50,000 00 # P#.%& per !
&irect materials &irect la'or +pplied o%eread (1,50 x P50) Total cost of >o' 220
P33,550 ,5 13,00 P35,515
&irect materials &irect la'or +pplied o%eread (1,50 x P50) e-or. cost (P3,50 x 20) $ale of re-or.ed pipe (200 x P150) Total cost of >o' 220
P33,550 ,5 13,00 ,550 ( 300) P2,65
