MULTIPLE CHOICE - THEORIES

1. D 6. D 11. D 16. A 21. C

2. B 7. A 12. D 17. C 22. B
3. B 8. C 13. C 18. B 23. A/D
4. D 9. B/C 14. B 19. B 24. B/C
5. D 10. B/C 15. C 20. B 25. B
 PROBLEM 2: GOLDEN SHOWER COMPANY

Journal Entries

a. Materials 229,040
Accounts Payable 229,040

Material X 20000 x 5.20 104,000

Material Y 24,000 x 3.75 90,000
Indirect Materials 35,040
229,040

b. Payroll 220,000
Withholding Taxes Payable 31,000
SSS Premiums Payable 7,000
Philhealth Contributions Payable 440
Pag-ibig Funds Contributions Payable 6,600
Accrued Payroll 174,960

Accrued Payroll 174,960

Cash 174,960

c. Work in Process 156,000

Factory Overhead Control 24,000
Marketing and Administrative Expense Control 40,000
Payroll 220,000

Job 101 10,000 direct labor x 4 40,000

Job 102 16,000 direct labor x 5 80,000
Job 103 12,000 direct labor x 3 36,000
Total Direct Labor 156,000
Indirect Labor 24,000
Marketing and Administrative 40,000
220,000

Factory Overhead Control 14,760

Marketing and Administrative Expense Control 3,280
SSS Premiums Payable 11,000
Philhealth Contributions Payable 440
Pag-ibig Funds Contributions Payable 6,600

d. Work in Process 216,350

 Factory Overhead Control 15,040
Materials 231,390

Material X 113,600
Material Y 102,750
Indirect Materials 15,040
231,390

e. Work in Process 85,500

Factory Overhead Applied 85,500

Job 101 10,000 direct labor x 2.25 22,500

Job 102 16,000 direct labor x 2.25 36,000
Job 103 12,000 direct labor x 2.25 27,000
85,500

f. Accounts Receivable 510,000

Sales 510,000

Cost of Goods Sold 380,700

Work in Process 380,700

Job 101 176,700

Job 102 204,000
380,700

g. Cash 494,000
Sales Discount 26,000
Accounts Receivable 520,000

Accounts Rec 494,000 / 95% 520,000

Sales Discoun 520,000 x 5% 26,000

h. Marketing and Administrative Expense Control 30,000

Factory Overhead Control 25,600
Cash 51,600
Accumulated Depreciation 4,000

i. Accounts Payable 170,000

Cash 170,000
j. Factory Overhead Applied 85,500
Cost of Goods Sold 6,100
Factory Overhead Control 79,400

Factory Overhead Control 24,000

c
Factory Overhead Control 14,760
d Factory Overhead Control 15,040
h Factory Overhead Control 25,600
Total Factory Overhead Control 79,400
e Factory Overhead Applied (85,500)
Over-Applied Factory Overhead (6,100)
STOCK CARDS

Received Issued

MATERIAL X
Beg. 4,000 units x 5.00 20,000
(a) 20,000 units x 5.20 104,000
Job 101 4,000 units x 5.00 20,000
16,000 units x 5.20 83,200
Job 103 2,000 units x 5.20 10,400

MATERIAL Y
Beg. 8,000 units x 3.00 24,000
(a) 24,000 units x 3.75 90,000
Job 102 8,000 units x 3.00 24,000
16,000 units x 3.75 60,000
Job 103 5,000 units x 3.75 18,750

INDIRECT MATERIALS
(a) 35,040
(c) 24,000

JOB ORDER COST SHEETS

Job 101 TOTAL

Direct Mate Direct Labor Factory Overhead
5,000 4,000 2,000
103,200 40,000 22,500
108,200 44,000 24,500 176,700

Job 102
Direct Mate Direct Labor Factory Overhead
1,200 2,000 800
84,000 80,000 36,000
85,200 82,000 36,800 204,000

Job 103
Direct Mate Direct Labor Factory Overhead
29,150 36,000 27,000

29,150 36,000 27,000 92,150

 COST OF GOODS SOLD STATEMENT

Balance Direct Materials used

Materials, January 1
Purchases
20,000 Materials Available for use
124,000 Less: Materials, Dec. 31 32,690
104,000 Indirect Materials 24,000
20,800 Direct Labor
10,400 Factory Overhead
Total Manufacturing Costs
Work in Process, Jan. 1
24,000 Less: Work in Process, Dec. 31
114,000 Cost of Goods Manufactured
90,000 Finished Goods, January 1
30,000 Less: Finished Goods, Dec. 31
11,250 Cost of Goods Sold - normal
Add: Under-applied factory overhead
Cost of Goods Sold - actual
35,040
11,040

Materials, Dec. 31 32,690

 44,000
229,040
273,040

(56,690) 216,350
156,000
85,500
457,850
15,000
(92,150)
380,700
65,000
(65,000)
380,700
(6,100)
374,600
 PROBLEM 5: STAR WARS CORPORATION

Journal Entries

1 Work in Process 60,000

Materials 60,000

2 Work in Process 120,000

Payroll 120,000

3 Work in Process 75,000

Factory Overhead Applied 75,000

4 Finished Goods 255,000

Work in Process 255,000

5 Accounts Receivable 340,000

Sales 340,000

Cost of Goods Sold 255,000

Finished Goods 255,000

Job 110 Job 220 Job 330 Total

Selling Price 100,000 140,000 100,000 340,000
Direct Materials 15,000 25,000 20,000 60,000
Direct Labor 40,000 50,000 30,000 120,000
Factory Overhead 25,000 30,000 20,000 75,000
Total Cost 80,000 105,000 70,000 255,000
Gross Profit 20,000 35,000 30,000 85,000
 PROBLEM 7: ABNER CORPORATION

1 Direct Materials used 205,000

Materials, Ending 90,000
Materials, Beginning (95,000)
Direct Materials Purchased 200,000

2 Total Manufacturing Cost 675,000

Factory Overhead (175,000)
Materials used (205,000)
Direct Labor Cost 295,000

3 Cost of Goods Available for Sale 775,000

Finished Goods, Ending (110,000)
Cost of Goods Sold 665,000

4 Sales 900,000
Cost of Goods Sold (665,000)
Gross Profit 235,000
 PROBLEM 10: NONA COMPANY

1 Units Sold 12,300

Finished Goods, Ending 300
Finished Goods, Beginning (100)
Units Completed/Manufactured 12,500

2 Direct Materials used 1,847,700

Direct Labor 2,125,800
Factory Overhead 1,026,500
Total Manufacturing Cost 5,000,000
Divide by units completed 12,500
Cost of Goods Manufactured per unit 400

3 Finished Goods, Beginning 43,000

Cost of Goods Manufactured 5,000,000
Finished Goods, Ending (300 x 400) (120,000)
Cost of Goods Sold 4,923,000
 MULTIPLE CHOICE - PROBLEMS

1. A 6. B 11. B 16. D 21. C 26. D

2. A 7. B 12. A 17. C 22. C 27. B
3. C 8. A 13. C 18. C 23. C 28. B
4. D 9. A 14. D 19. D 24. B 29. D
5. A 10. B 15. A 20. C 25. A/46,000 30. B