QUIZ3

QUIZ 4.
THERORY QUESTIONS: This will help you express your understanding on the concept.
Instruction: Answer in a table format as provided in the problem.
1. Differentiate Cost flow in a trading and manufacturing business.
DIFFERENCE DIFFERENCE DIFFERENCE
resells goods that it Has only one type of Cost of goods sold
MERCHANDISING purchases from its inventory computation:
suppliers
*merchandise Beginning Inventory
inventory + Purchases
Cost of goods
available for sale
- Ending Inventory
Cost of goods Sold
produces goods from Maintains 3 types of Direct Raw Materials,

MANUFACTURING raw materials, which inventories Beg
is later sold as a +Direct Raw Materials
finished product. *raw materials Purchases
inventory Direct Materials
*work in process Available for Use
inventory -Direct Materials
*finished good Inventory, Ending
inventory Direct Raw Materials
Used
+ Direct Labor
+Overhead
Total Manufacturing
Cost
+Work in Process
inventory, beg
Cost of goods put into
produce
-Wok in process
inventory, ending
Cost of goods
manufactured
+Finished goods
inventory,beg
Cost of goods
available for sale
-Finished goods
inventory, end
COST OF GOODS
SOLD
II. PROBLEM SOLVING: This will help you develop your analytical capabilities and
judgment.
Instruction: Answer the following questions and provide the necessary requirement with
solutions.
Problem 1
456 Company budgeted overhead cost at P180,000 for the current period. In addition,
they budgeted costs for factory rent at P215,000, cots for depreciation of office equipment at
P12,000 costs for office rent at P92,000, and costs for depreciation of factory equipment at
P38,000. All these were based upon estimated machine hours of P80,000. At the end of the
period. The factory overhead control account has a balance of P373,875. Actual machine hours
were 74,000.
Required:
1. Compute the over-underapplied factory overhead for the period.
P12,650 overapplied
2. Journalize the over-underapplied factory overhead.
Manufacturing Overhead 12,650 overapplied

Cost of Goods Sold 12,650 overapplied
Problem 2
281 Manufacturing Company has developed the following information for the year ended
December 31, 2020
Raw Materials Inventory, January 1 P125,000
Purchases 150,000
Raw Materials Inventory, December 31 65,000
Direct labor 70,000
Factory Overhead (150% of Direct Labor Cost)
Work in process inventory, January 1 90,000
Work in process inventory, December 31 120,000
Finished Goods inventory, January 1 100,000
Finished Goods inventory, December 31 80,000
Required: Cost of Goods Sold Statement

281 MANUFACTURING COMPANY
Cost of Goods Sold Statement
For the year ended December 31, 2020
Direct Raw Material Used:
Raw Materials, January 1 125,000
Purchases 150,000
Direct Materials available for use 275,000
Less: Raw Materials, December 31 65,000 P 210,000
Direct Labor 70,000
Total Manufacturing Cost 280,000
Add: Work in Process inventory, January 1 90,000
Cost of goods put into production 190,000
Less: Work in Process inventory, December 31
120,000
Cost of goods manufactured P 70,000
Add: Finished goods inventory, January 1 100,000
Less: Finished Goods Inventory, December 31
80,000
Cost of Goods Sold P 90,000
PROBLEM 3.
Requirement 1: Entries to record the transactions given above.
a. Materials 150,000
Accounts Payable 150,000
b. Factory Payroll 75,999

Accrued Payroll 60,404
Withholding Tax Payable 11,200
SSS Premiums Payable 2,400
Phil health Contributions Payable 375
Pag-ibig Funds Contribution 1,620
Work in Process 56,000

Factory Overhead Control 19,999
Payroll 75,999
c. Materials 20,000
Accounts Payable 20,000
d. Factory Overhead Control 5,595
SSS Premiums 3,600
Phil Health Contributions 375
Pag-ibig Funds Contributions 1,620
e. Work In Process 85,000

Factory Overhead Control 11,000
Materials 96,000
f. Accounts Payable 4,000
Materials 4,000
g. Accounts Payable 148,000

Accrued Payroll 75,000
Cash 223,000
h. Factory Overhead Control 24,900
Miscellaneous Accounts 24,900
i. Work in Process
Factory Overhead Applied
j. Finished Goods 165,000
Work in Process 165,000
k. Accounts Receivables 190,000
Sales 190,000
Cost of Goods Sold 120,000
Finished Goods 120,000
.
Requirement 2.
Cost of goods Sold Statement
067 COMPANY
October 2020
Direct Materials Used:
Purchases 170,000
Less: Purchase Returns 4,000
Total Goods Available for use 166,000
Less: Indirect Materials Used 11,000
Materials Inventory, Oct. 70,000 81,000 85,000
Direct Labor 56,000
Factory Overhead 67,200
Add: Work in Process, Oct. 1 0
Total Goods Out into Process 208,200
Less: Work in Process, Oct 31 (43,200)
Cost of Goods Manufactured 165,000
Add: Finished Goods, Oct 1 0
Total Goods Available for Sale 165,000
Less: Finished Goods, Oct 31 45,000
Cost of Goods Sold-Normal 120,000
Less: Over Applied Factory Overhead 13,200
Cost of Goods Sold- Actual 106,800
PROBLEM 4.
1. Cost of Goods Sold Statement
199 Corporation
March 2011
Direct Materials Used:

Materials, March 1 50,000
Purchases 400,000
Total Goods Available for use 450,000
Less: Materials, March 31
Materials Inventory, 47,485 402,515
Direct Labor 210,000
Factory Overhead 140,000
Add: Work in Process, March 1 102,350
Total Goods Out into Process 854,865
Less: Work in Process, March31 117,135
Cost of Goods Manufactured 737,730
Add: Finished Goods, March 1 100,000
Total Goods Available for Sale 837,730
Less: Finished Goods, March 31 82,500
Cost of Goods Sold-Normal 755,230
Less: Over Applied Factory Overhead 251,743
Cost of Goods Sold- Actual 503,487
199 Corporation
Income Statement
March 2011
Sales 1,200,000
Less: Cost of Goods Sold 503,487
Gross Profit 696,513
Less: Operating Expense
Marketing Expenses 60,000
Administrative Expenses 12,000
Net Income 624,513

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QUIZ 4.

DIFFERENCE DIFFERENCE DIFFERENCE

produces goods from Maintains 3 types of Direct Raw Materials,

2. Journalize the over-underapplied factory overhead.

Manufacturing Overhead 12,650 overapplied

Required: Cost of Goods Sold Statement

Requirement 1: Entries to record the transactions given above.

b. Factory Payroll 75,999

Work in Process 56,000

e. Work In Process 85,000

g. Accounts Payable 148,000

Direct Materials Used:

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