Cost_Chap 1-3

The accounting dept. of LPC Company provided the following data for June: Sales P72,000; marketing expenses 5%, admin expenses 1%, other expenses 5% of SALES; purchases P36,000; factory overhead 2/3 of direct labor P15,000.

Beginning inventories:

Finished goods P7,000

Work in process 8,000

Materials 8,000

Ending inventories:

Finished goods P10,200

Work in process 15,000

Materials 8,500

Compute for June Cost of Goods Sold

• P50,300

• P53,500

• P51,300

• P62,800

The accounting dept. of LPC Company provided the following data for June: Sales P72,000; marketing expenses 5%, admin expenses 1%, other expenses 5% of SALES; purchases P36,000; factory overhead 2/3 of direct labor P15,000.

Beginning inventories:

Finished goods P7,000

Work in process 8,000

Materials 8,000

Ending inventories:

Finished goods P10,200

Work in process 15,000

Materials 8,500

Compute for June income before tax

• P13,780

• P17,020

• P14,780

• P1,280

You have been trying to reconstruct the records of ABC Company. Some employees are suspected of having taken inventories. Many records are missing. Nevertheless, you have gathered the following data regarding the current year:

WIP, Beg 200,000

WIP, End 250,000

Gross Profit 2,500,000

FG, End 760,000

Cost of Goods Sold 1,600,000

Selling Expenses 400,000

Admin Expenses 300,000

Direct Materials, purchases 800,000

Factory overhead 700,000

Sales 4,100,000

Direct labor 600,000

Direct Materials, used 500,000

The beginning finished goods inventory was:

• 50,000

• 610,000

• 600,000

• 310,000

A manufacturing company had the following data:

Beginning Ending

Materials 44,000 60,000

Work in process 80,000 96,000

Finished goods 50,000 36,000

During 2020, the following costs and expenses were incurred:

Raw Materials purchased 600,000

Direct labor costs 240,000

Indirect labor cost 120,000

Taxes, utilities and depreciation of factory building 100,000

Sales and office salaries 128,000

The cost of goods sold during the period was:

• 1,028,000

• 1,042,000

• 1,044,000

• 1,078,000

The accounting department of Jox Company provided the following data for 2020:

Sales 144,000

Marketing expenses 7,200

Admin expenses 1,440

Other expenses 720

Purchases ?

Factory overhead 20,000

Direct labor 30,000

Cost of Goods Sold 100,600

Beginning Inventories:

Finished goods 14,000

Work in process 16,000

Materials 16,000

Ending inventories

Finished goods 20,400

Work in process 30,000

Materials 17,000

Compute for 2020 cost of materials purchased.

• 82,640

• 72,000

• 29,200

• 170,000

The December 31, 2020 trial balance of Puti Company showed the following information:

Sales 1,400,000

Purchases 240,000

Freight-in 3,000

Direct labor 320,000

Sales salaries 20,000

Sales returns and allowances 2,000

Factory overhead 188,000

Advertising expense 15,000

Delivery expenses 6,000

Inventories:

Ending Beginning

Finished goods 46,000 62,000

Work in process 13,000 12,000

Materials 19,000 17,000

Compute total manufacturing costs:

• 749,000

• 790,000

• 746,000

• 750,000

The December 31, 2020 trial balance of Puti Company showed the following information:

Sales 1,400,000

Purchases 240,000

Freight-in 3,000

Direct labor 320,000

Sales salaries 20,000

Sales returns and allowances 2,000

Factory overhead 188,000

Advertising expense 15,000

Delivery expenses 6,000

Inventories:

Ending Beginning

Finished goods 46,000 62,000

Work in process 13,000 12,000

Materials 19,000 17,000

Compute cost of goods sold.

• 761,000

• 805,000

• 738,000

• 764,000

Kat-kat Company manufactures special machines according to customer’s specifications. The following data were available at the beginning and ending of April:

Beginning Ending

Materials inventory 32,400 34,000

Work in process 7,200 16,240

Finished goods 8,000 6,000

During April, direct materials costing P40,000 were purchased, direct labor cost totaled P33,000, and factory overhead was P17,160.

For April, the cost of goods manufactured is:

• 90,560

• 81,520

• 79,520

• 88,560

Yeyen Corp manufactures plastic coated metal clips. The following were among Yeyen’s 2020 manufacturing costs:

Wages:

Machine operators 200,000

Maintenance workers 30,000

Factory foreman 90,000

Materials used:

Metal wire 500,000

Lubricants for oiling machines 10,000

Plastic coating 380,00

Direct labor is:

• 230,000

• 290,000

• 320,000

• 200,000

Yeyen Corp manufactures plastic coated metal clips. The following were among Yeyen’s 2020 manufacturing costs:

Wages:

Machine operators 200,000

Maintenance workers 30,000

Factory foreman 90,000

Materials used:

Metal wire 500,000

Lubricants for oiling machines 10,000

Plastic coating 380,000

Compute direct materials

• 510,000

• 500,000

• 880,000

• 890,000