Escolar Documentos
Profissional Documentos
Cultura Documentos
CHAPTER 9
Answers to Multiple Choice Theoretical
1.
2.
3.
4.
5.
c
b
a
a
a
6.
7.
8.
9.
10.
b
b
c
b
d
11.
12,
13.
14.
15.
b
d
b
b
a
2.
(a)
Total manufacturing cost: (2,200 units x P56)
Less: cost of spoiled units (200 units x P56)
Cost of good units
P123,200
11,200
P112,000
P121,000
6,000
P115,000
P 57.50 (2)
56 (1)
(d)
Charged to Specific Job:
Direct materials
Direct labor
Manufacturing overhead (P800 x 150%)
Manufacturing cost
P 660
800
1,200
P2,660
P13.30
P2,660
P100
160
240
500
P3,160
P15.80
2
3.
(d)
4.
(a)
5.
(c)
Charged to specific job:
Direct materials: (8,000 units x P5)
Direct labor: (8,000 units x P4)
Manufacturing overhead: (8,000 units x P3)
Manufacturing costs
Less: Scrap value (600 x P7)
Manufacturing cost net of scrap value
P40,000
32,000
24,000
P96,000
4,200
P91,800
P 12.41
P 40,000
32,000
28,000
P100,000
1,500
P 98,500
P 12.50
(b)
Charged to LGU Machine Works:
Direct materials: (1,000 x P3.50)
Direct labor: (2,000 x P1.25)
Overhead: (P2,500 x 140%)
Manufacturing cost
Rework cost:
Direct materials: (100 x P0.15)
Direct labor: (100 x P0.25)
Overhead: (P25 x 140%)
Total manufacturing cost
P 7,000
2,500
3,500
P13,000
P15
25
35
75
P13,075
P6.5375
P 7,000
2,500
3,750
P13,250
P6.6250
3
7.
(a)
8.
(b)
9.
(d)
10.
11.
12.
P 2,000
4,850
4,850
P11,700
800
P10,900
P473.91
(b)
Direct materials
Direct labor
Overhead
Total
Less: Cost of spoilage: (P49,565 / 2,200) x 200 units
Manufacturing cost of 2,000 units
P26,951
15,076
7,538
P49,565
4,506
P45,059
P 22.53
(b)
Direct materials (P95 x 250)
Direct labor (P6 x 5,260 DLH)
Applied overhead (P2 x 5,260 DLH)
Total
Less: Cost of spoilage (P65,830 / 250) x 10
Manufacturing cost of 240 units
P23,750
31,560
10,520
P65,830
2,633
P63,197
P263.32
(d)
Direct materials
Direct labor
Overhead (P12,500/P2.50) x P1.50
Total
Rework cost (P100 + P125 + P75)
Sales value of spoiled units (1,000 x P4)
Manufacturing cost of 9,000 units
P30,000
12,500
7,500
P50,000
300
(40,000)
P46,300
P5.1444
4
Solutions to Problems
Problem 9-1
1.
2.
3.
4.
Cash/Accounts receivable
Other income
2,500
Cash/Accounts receivable
Cost of goods sold
2,500
Cash/Accounts receivable
Factory overhead control
2,500
Cash/Accounts receivable
Work in process inventory
2,500
2,500
2,500
2,500
2,500
Problem 9-2
1.
2.
3.
4.
Cash/Accounts receivable
Other income
4,000
Cash/Accounts receivable
Factory overhead control
4,000
Cash/Accounts receivable
Work in process inventory
4,000
Materials inventory
Factory overhead control
4,000
4,000
4,000
4,000
4,000
4,000
4,000
Problem 9-3
1.
2.
54,000
24,000
10,000
20,000
1,000
1,700
2,700
51,300
51,300
1.
208,000
208,000
20,000
20,000
188,000
188,000
Problem 9-5
1.
2.
1,200
1,600
2,500
300
Accounts receivable
Spoiled goods inventory
To record the offer of scrap dealer.
2,500
2,800
2,800
2,500
Problem 9-6
Entry No. 1:
Entry No. 2:
Entry No. 3:
Entry No. 4:
If spoilage is traceable to a particular job and the loss is recoverable from the
customer or from the insurance company.
Problem 9-7
1a.
180,000
92,000
28,000
60,000
6,000
1,200
172,800
1b.
2a.
172,800
P18.
180,000
92,000
28,000
60,000
2b.
7,200
6,000
6,000
174,000
Cash/Accounts receivable
Sales
To record sales (P174,000 x 140%)
243,600
174,000
174,000
243,600
174,000
P18.125
Problem 9-8
1.
2.
1,800
1,800
Accounts receivable
Spoiled goods inventory
To record sales of scrap.
1,100
3,600
1,100
Problem 9-9
1.
1,200
1,200
3a.
b.
4a.
b.
5.
200
1,000
Accounts receivable
Work in process inventory
To record cost of defective cases chargeable to customer.
1,200
1,200
1,200
1,200
1,200
400
800
400
800
200
1,200
1,200
200
200
Same.
200
8
Problem 9-10
1.
13,600
7,000
3,000
3,600
1,400
300
500
600
13,600
13,600
P68
Problem 9-11
1.
130,000
40,000
30,000
60,000
8,500
1,000
2,500
5,000
138,500
138,500
P69.20
Problem 9-12
1a.
400,000
184,000
72,000
144,000
2a.
400,000
P200
400,000
184,000
72,000
144,000
4,400
800
1,200
2,400
800
1,200
2,400
400,000
b.
4,400
404,400
404,400
P202.20
10
Problem 913
1a.
2a.
30
45
72
17,100
17,100
P8.55
b.
8,000
3,500
5,600
147
17,100
16,750
8,000
3,500
5,250
142.50
30
45
67.50
16,892.50
16,892.50
11
Problem 9-14
a.
b.
The rework cost is debited to the manufacturing overhead control account since the
company uses a predetermined rate to apply overhead. The entry is:
Manufacturing overhead control
Various accounts
c.
d.
P343,550
78,875
14,245
P436,670
37,750
37,750
(P425,000 / 50,000 = P8.50 per MH
Direct materials
Direct labor
Applied overhead (1,540 x P8.50)
Total cost of Job 2720
P343,550
78,875
13,090
P435,515
Direct materials
Direct labor
Applied overhead (1,540 x P8.50)
Rework cost (P37,750 x .20)
Sale of reworked pipe (200 x P1.50)
Total cost of Job 2720
P343,550
78,875
13,090
7,550
( 300)
P442,765