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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following data are available for Peter Senen Company during the month of July 2020:

Direct materials purchasedP 95,000

Direct labor 80,000

Indirect materials 40,000

Indirect labor 45,000

Other indirect factory costs 60,000

Marketing expenses 72,000

Office salaries and wages 30,000

Raw materials inventory, June 30 35,000

Raw materials inventory, July 31 50,000

What is the total factory overhead?

13. Jane Company uses Job order costing system and applies manufacturing overhead to work in process using a predetermined annual overhead rate.

During May 2020, Jane’s transactions included the following:

Direct materials issued to productionP50,000

Indirect materials issued to production 4,000

Manufacturing overhead incurred 75,000

Manufacturing overhead applied 80,000

Direct labor costs 60,000

Jane had neither beginning nor ending work in process inventory. What was the cost of jobs completed in May 2020?

14. Krissy Company uses job order cost system. The following transactions were completed in January, which was the first month of operations:

Received direct materials and supplies costing P20,000

Materials and supplies were requisitioned as follows:

Direct materials

Job 1P3,000

Job 2 4,000

Job 3 1,000P8,000

Indirect materials 1,000

Factory payroll was distributed as follows:

Direct labor

Job 1(200 hrs)P2,000

Job 2(300 hrs) 3,000

Job 3(400 hrs) 4,0009,000

Indirect labor2,000

Other indirect manufacturing costs totaledP3,000

Indirect manufacturing costs are applied on the basis of direct labor hours.

The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63,000.

How much factory overhead applied to production?

15. Krissy Company uses job order cost system. The following transactions were completed in January, which was the first month of operations:

Received direct materials and supplies costing P20,000

Materials and supplies were requisitioned as follows:

Direct materials

Job 1P3,000

Job 2 4,000

Job 3 1,000P8,000

Indirect materials 1,000

Factory payroll was distributed as follows:

Direct labor

Job 1(200 hrs)P2,000

Job 2(300 hrs) 3,000

Job 3(400 hrs) 4,0009,000

Indirect labor2,000

Other indirect manufacturing costs totaledP3,000

Indirect manufacturing costs are applied on the basis of direct labor hours.

The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63,000.

What is the balance of materials inventory at the end?

16. Krissy Company uses job order cost system. The following transactions were completed in January, which was the first month of operations:

Received direct materials and supplies costing P20,000

Materials and supplies were requisitioned as follows:

Direct materials

Job 1P3,000

Job 2 4,000

Job 3 1,000P8,000

Indirect materials 1,000

Factory payroll was distributed as follows:

Direct labor

Job 1(200 hrs)P2,000

Job 2(300 hrs) 3,000

Job 3(400 hrs) 4,0009,000

Indirect labor2,000

Other indirect manufacturing costs totaledP3,000

Indirect manufacturing costs are applied on the basis of direct labor hours.

The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63,000.

What is the factory overhead under or over applied?

17. Combate Company uses a job order cost system and applies factory overhead on the basis of the direct labor cost. The overhead rates for 2020 are 200% for department A and 50% for Department B. Job 123, started and completed during 2020 was charged with the following costs:

Department ADepartment B

Direct materialsP25,000P5,000

Direct labor ?30,000

Factory overhead 40,000 ?

What is the total manufacturing costs associated with Job 123?

Peter Senen company manufactures tools to customer specifications. The following data pertain to Job 222 for the month of February:

Direct materials usedP 4,200

Direct -labor hours worked 300

Direct -labor rate per hour P8.00

Machine hours used 200

Applied factory overhead rate per hour P15.00

What is the total manufacturing cost recorded on Job 222 for February?

18. Grace Company used a predetermined ratew during 2020 of P2 per direct labor hour, based on an estimate of 20,000 direct labor hour s to be worked during the year. Actual costs and activity during 2020 were:

Actual manufacturing overhead cost incurredP30,000

Actual direct labor hours worked18,000

What would be the under or overapplied overhead for 2020?

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