APC Ch12sol.2011

CHAPTER 12
Introduction to Cost Accounting

E 12-1
1. A
2. A
3. A & C
4. A
5. A
E 12-2
6.
7.
8.
9.
10.
A
A
A
A&C
A
11.
12.
13.
14.
15.
A
A
A
A
A
16.
17.
18.
19.
20.
A
A
C
A
A
Lacbay Manufacturing Company

Income Statement
For the Month Ended April 30, 2010
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Marketing Expenses
Administrative Expenses
Profit before Income Tax
Income Tax
Profit
P1,440,000
966,000
P 474,000
P72,000
14,400
86,400
P 387,600
135,660
P251,940
Lacbay Manufacturing Company

Statement of Cost of Goods Sold
For the Month Ended April 30, 2010
Direct Materials:
Raw Materials Inventory, beginning
Raw Materials Purchases
Raw materials Available for Use
Less Raw Materials Inventory, end
Direct Materials Used
Direct Labor
Factory Overhead
Total Manufacturing Cost
Add Work in Process Inventory, beginning
Total Cost of Work Put into Process
Less Work in Process Inventory, end
Cost of Goods Manufactured
Add Finished Goods Inventory, beginning
Cost of Goods Available for Sale
Less Finished Goods Inventory, end
Cost of Goods Sold
E 12-3
1. Raw Materials, June 30
Add Raw Materials Put into Process
Raw materials Available for Use
Less Raw Materials, June 1
Raw Materials Purchased
P120,000
720,000
P840,000
170,000
P 670,000
300,000
200,000
P1,170,000
160,000
P1,330,000
300,000
P1,030,000
140,000
P1,170,000
204,000
P 966,000
P150,000
240,000
P390,000
120,000
P270,000
Chapter 12- Suggested Answers (APC-2011)
2.
3.
Raw Materials Put into Process

Add Direct Labor
Department A
Department B
Prime Costs
Direct Labor
Add Factory Overhead
Department A (P140,000 x 120%)
Department B (P160,000 x 80%)
Conversion Costs
page 2
P240,000
P140,000
160,000
300,000
P540,000
P300,000
P168,000
128,000
296,000
P596,000
4.
Raw Materials Put into Process

Direct Labor
Factory Overhead
P240,000
300,000
296,000
P836,000
5.

Add Work in Process, June 1
Less Work in Process, June 30
P836,000
160,000
P996,000
128,000
P868,000
6.

Add Finished Goods, June 1
Less Finished Goods, June 30
Cost of Goods Sold
P868,000
108,000
P976,000
120,000
P856,000
E 12-4
Company A
Finished Goods, beginning
Add Cost of Goods Manufactured
Less Cost of Goods Sold (P8,000,000 x 60%)
Finished Goods, end
P1,200,000
7,600,000
P8,800,000
4,800,000
P4,000,000
Company B
Cost of goods sold
Add Finished goods, end
Cost of goods available for sale
P2,600,000
380,000
P2,980,000
Company C
Add Finished Goods, beginning
Less Finished Goods, end
Cost of Goods Sold
Add Gross Profit
Sales
P680,000
90,000
P770,000
104,000
P666,000
192,000
P858,000
page 3
E 12-5
a.

Vouchers Payable
80,000
80,000
b.
no entry
c.
Factory Payroll
Withholding Taxes Payable
SSS Contributions Payable
Medicare Contributions Payable
Vouchers Payable
80,000
Vouchers Payable
Cash
64,120
Direct Labor
Indirect Labor
Factory Payroll
64,000
16,000
d.
e.
f.
g.
h.
i.
Factory Payroll Taxes

Employees Compensation Contributions Payable
Sundry Factory Overhead
Vouchers Payable
Depreciation Expense Factory
Insurance Factory
Property Taxes Factory
Prepaid Insurance
Accumulated Depreciation Factory
Accrued Property Taxes
Raw Materials, end
Work in Process, end
Manufacturing Summary
P80,000 - P66,000 P4,000 = P10,000
9,600
6,000
280
64,120
64,120
80,000
8,000
6,000
640
1,360
36,000
36,000
4,200
1,560
2,500
1,560
4,200
2,500
10,000
18,260
28,260
P66,000 + P64,000 + P4,000 + P16,000 + P8,000 + P36,000 +
P4,200 + P1,560 + P2,500 P184,000 = P18,260

j.
k.
Accounts Receivable
Sales
Cash
Accounts Receivable
160,000
160,000
80,000
80,000
l.
m.
Direct Labor
Indirect Labor
Sundry Factory Overhead
Depreciation Expense Factory
Insurance Factory
Property Taxes Factory
Finished Goods, end
Income Summary
P184,000 (P160,000 x 75%) = P64,000
E 12-6
1. Direct Materials, January 1
Add Purchases of Direct Materials
Direct Materials Available for Use
Less Direct Materials, December 31
page 4
212,260
80,000
64,000
16,000
8,000
36,000
4,200
1,560
2,500
64,000
64,000
P12,800
18,000
P30,800
10,800
P20,000
2.
Cost of Goods Sold (3)

Add Gross Profit
Sales
P105,400
22,600
P128,000
3.

Add Finished Goods, January 1
Less Finished Goods, December 31
Cost of Goods Sold
P100,000
16,000
P116,000
10,600
P105,400
4.
Direct Materials Used (1)

Direct Labor
Factory Overhead
P 20,000
26,000
58.000
P104,000
5.

Add Work in Process, December 31
Less Total Manufacturing Cost
Work in Process, January 1
P100,000
4,000
P104,000
104,000
P - 0--
6.
Direct Materials Used (7)

Add Direct Materials, December 31
Less Purchases of Direct Materials
Direct Materials, January 1
P11,800
9,200
P21,000
14,000
P 7,000
7.

Less: Direct Labor
Factory Overhead
page 5
P43,000
P16,000
15,200
31,200
P11,800
8.
Cost of Goods Sold

Add Finished Goods, December 31
Less Finished Goods, January 1
P44,000
10,600
P54,600
8,000
P46,600
9.
Sales
Less Cost of Goods Sold
Gross Profit
P67,600
44,000
P23,600
10. Total Manufacturing Cost

Add Work in Process, January 1
Less Cost of Goods Manufactured (8)
Work in Process, December 31
P43,000
9,600
P52,600
46,600
P 6,000
11.
P80,800
Total Manufacturing Cost (15)

Less: Direct Materials Used
Factory Overhead
Direct Labor
12. Direct Materials Used

Add Direct Materials, December 31
Less Direct Materials, January 1
Purchases of Direct Materials
13. Sales
Less Gross Profit
Cost of Goods Sold
P18,800
26,000
44,800
P36,000
P18,800
11,000
P29,800
13,800
P16,000
P110,000
24,000
P 86,000
14. Cost of Goods Sold (13)

Add Finished Goods, December 31
Less Finished Goods, January 1
P86,000
12,400
P98,400
15,600
P82,800
15. Cost of Goods Manufactured (14)

Less Work in Process, January 1
P82,800
600
P83,400
2,600
P80,800
page 6
16. Direct Materials, January 1

Add Direct Materials Purchased
Materials Available for Use
Less Direct Materials Used
Direct Materials, December 31
17. Total Manufacturing Cost
Direct Labor
Factory Overhead
P 3,000
16,000
P19,000
11,200
P 7,800
P36,200
P11,200
12,000
23,200
P13,000
18. Cost of Goods Manufactured

Add Finished Goods, January 1
Finished Goods, December 31
P36,200
12,000
P48,200
34,000
P14,200
19. Sales
Gross Profit
P80,000
34,000
P46,000
20. Cost of Goods Manufactured

Less Total Manufacturing Cost
Work in Process, January 1
P36,200
5,000
P41,200
36,200
P 5,000
P 12 1
1.

Less Cost of Goods Manufactured
Difference in Work in Process beginning and ending
P3,600,000
3,400,000
P 200,000
20%
P1,000,000
2.

Add Work in Process, January 1 (P1,000,000 x 80%)
Total Cost of Goods Put into Process
P3,600,000
800,000
P4,400,000
3.

Less: Manufacturing Overhead (P3,600,000 x 25%)
Direct Labor (P900,000 / 72%)
P3,600,000
P 900,000
1,250,000
2,150,000
P1,450,000
P 12 2
1.
a.
b.

Vouchers Payable
400,000
Other Factory Overhead
70,000
400,000
c.
d.
e.
Vouchers Payable
Direct Labor
Indirect Labor
Sales Salaries
Administrative Salaries
Pag-ibig Contributions Payable
Vouchers Payable
Vouchers Payable
Cash
Sales Payroll Taxes
Administrative Payroll Taxes
Pag-ibig Contributions Payable
f.
No entry
g.
No entry
h.
Accounts Receivable
Sales
i.
j.
k1
page 7
70,000
280,000
60,000
50,000
30,000
37,040
16,800
2,250
12,600
351,310
351,310
351,310
28,400
4,750
2,700
21,000
2,250
12,600
1,078,000
1,078,000
Cash
Accounts Receivable
810,000
Vouchers Payable
Cash
440,000

Raw Materials, end
Indirect Materials
810,000
440,000
94,400
60,000
70,000
224,400
P36,000 + P70,000 + P280,000 + 60,000 + P28,400 +

P370,000 + P70,000 P820,000 = P94,400
P100,000 + P400,000 P370,000 P70,000 = P60,000
k2.
Raw Material Purchases
Direct Labor
Indirect Labor
Indirect Materials
908,400
400,000
70,000
280,000
60,000
28,400
70,000
k3.
k4.
k5.
k6.
k7.
page 8
Work in Process, beginning
Raw Materials, beginning
136,000
Finished Goods
Income Summary
P70,000 + P820,000 P770,000 = P120,000
120,000
Income Summary
Sales
Sales Salaries
Sales Payroll Taxes
Income Tax
Income Summary
Income Summary
Retained Earnings
36,000
100,000
120,000
70,000
70,000
1,078,000
820,000
50,000
30,000
4,750
2,700
66,165
104,385
154,385
154,385
Lamasan Company
Cost of Goods Sold Statement
For the Month Ended July 31, 2010
Direct Materials:
Add Raw Materials Purchases
Raw Materials Available for Use
Less: Indirect Materials
Raw Materials, end
Direct Labor
Factory Overhead:
Indirect Materials
Indirect Labor
Add Work in Process, beginning
Less Work in Process, end
Cost of Goods Sold
P100,000
400,000
P500,000
P70,000
60,000
P70,000
60,000
28,400
70,000
130,000
P370,000
280,000
228,400
P878,400
36,000
P914,400
94,400
P820,000
70,000
P890,000
120,000
P770,000
3.
page 9
Lamasan Company
Income Statement
For the Month Ended July 31, 2010
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Sales Salaries
Sales Payroll Taxes
Profit before Income Tax
Income Tax
Profit
P1,078,000
770,000
P 308,000
P30,000
2,700
50,000
4,750
Lamasan Company
Statement of Financial Position
July 31, 2010
ASSETS
Cash (P200,000 - P351,310 + P810,000 P440,000)
Accounts Receivable (P120,000 + P1,078,000 P810,000)
Finished Goods
Work in Process
Raw Materials
TOTAL ASSETS
87,450
P 220,550
66,165
P154,385
P218,690
388,000
120,000
94,400
60,000
P881,090
LIABILITIES
Vouchers Payable (P36,000 + P400,000 + P70,000 + P351,310 P351,310
P440,000)
Income Tax Payable
SSS Contributions Payable (P16,800 + P21,000)
Medicare Contributions Payable (P2,250 + P2,250)
Pag-ibig Contributions Payable (P12,600 + P12,600)
TOTAL LIABILITIES
66,165
37,040
37,800
4,500
25,200
P236,705
SHAREHOLDERS EQUITY
Ordinary Share Capital
Retained Earnings (P90,000 + P154,385)
TOTAL STOCKHOLDERS EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
644,385
P881,090
P 66,000
P400,000
244,385
P 12 3
1.

Add Raw Materials Purchases
Raw Materials, end
P128,000
168,000
P296,000
P156,000
120,000
276,000
page 10
Indirect Materials Used

Factory Payroll paid
Accrued Payroll
Direct Labor
Indirect labor
P 20,000
P 88,000
12,000
(64,000)
P 36,000
3.
Indirect Materials
Indirect Labor
Factory Insurance
Depreciation of Factory Equipment
Factory Utility Service
Total Factory Overhead
P 20,000
36,000
1,200
6,800
12,000
P 76,000
4.

Direct Labor
Factory Overhead
Add Work in Process, beginning
P156,000
64,000
76,000
P296,000
164,000
P460,000
188,000
P272,000
5.

Cost of Goods Sold
P272,000
592,000
P864,000
608,000
P256,000
2.
P 12 4
1. P180,000
2. P 30,000
3. P 46,000
4. P 12,000
5. P 34,000
6. P 36,000
7. P 94,000
8. P 30,000
9. P 82,000
1.
10.
11.
12.
13.
14.
15.
16.
17.
P 12,000
P 34,000
P 42,600
P123,600
P 42,000
P 36,600
P132,400
P 95,000
MC
Finished Goods, end
Cost of Goods Sold
Gross Profit
Sales
18.
19.
20.
21.
22.
23.
24.
25.
P260,000
P18,000
P78,000
P53,400
P80,400
P32,600
P36,600
P40,000
P680,000
90,000
( 104,000)
P666,000
192,000
P858,000
page 11

Less Increase in Raw Materials Inventory
Direct Labor
Factory Overhead
Total Manufacturing Cost = Cost of Goods Manufactured
Decrease in Finished Goods Inventory
Cost of Goods Sold
P 860,000
30,000
P 830,000
400,000
600,000
P1,830,000
70,000
P1,900,000

Direct Materials Purchases
Direct Labor
Prime Cost
P 72,000
168,000
( 60,000)
P 180,000
120,000
P300,000
Direct Labor
Factory Overhead [(P120,000 /15) x 20]
Conversion Cost
P120,000
160,000
P280,000
Prime Cost
Factory Overhead
P300,000
160,000
P460,000
36,000
(24,000)
P472,000
Beginning inventories (P80,000 + P50,000 + P120,000)

Ending inventories (P100,000 + P70,000 + P140,000)
Direct Labor
Factory Overhead
Cost of Goods Sold
P250,000
(310,000)
240,000
216,000
(756,000)
P360,000
Cost of Goods Sold

Finished Goods, September 30
Finished Goods, September 1
P756,000
140,000
(120,000)
P776,000
P756,000 x 200% =
Direct Materials, June 1

Purchases
Direct Materials, June 30
Direct Materials Used in production
10

Direct Labor
Prime Cost
P1,512,000
P246,000
825,720
(375,908)
P695,812
P 695,812
428,216
P1,124,028
page 12
11
Direct Labor
Factory Overhead (P16,470 x 11)
Conversion Cost
P428,216
181,170
P609,386
12
Prime Cost
Factory Overhead
Work in Process, June 1
Total Cost of Goods Placed in Process
P1,124,028
181,170
P1,305,198
648,040
P1,953,238
13
Total Cost of Goods Placed in Process

Less Work in Process, June 30
P1,953,238
1,153,382
P 799,856
14

Finished Goods, ending
Cost of Goods Sold
P799,856
1,196,642
(1,587,278)
P409,220
15
P428,216/16470 =
P26.00
16
P125,000/12.5% =
P1,000,000
17
P315,000/75% =
18
Sales
Operating Expenses
Profit
Cost of Goods Sold
P420,000
P1,000,000
P125,000
125,000
19
Beginning Inventories
Ending inventories
Purchases
Direct Labor
Factory Overhead
Cost of Goods Sold
20
P200,000 + P230,000 P250,000 =
TM 44
1. T
2. F
3. T
4. F
5. F
6.
7.
8.
9.
10.
F
T
F
T
F
250,000
P750,000
P700,000
(1,115,000)
230,000
420,000
315,000
(750,000)
P200,000
11.
12.
13.
14.
15.
F
T
T
F
F
P180,000
16.
17.
18.
19.
20.
F
T
F
T
F
TM 45
1.
2.
3.
4.
5.
A
B
H
D
K
TM 46
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
TM 47
1. B
page 13
E
G
K, L, M
I
N
A plus J
J
C
M
G
1.
2.
3.
4.
5.
B
B
C
C
C
6. D
7. A
8. C
9. B
10. C
Sales
Gross Profit
Cost of Goods Sold
Finished Goods, end
P720,000
(440,000)
P280,000
60,000
(240,000)
P100,000
P1,400,000
(650,000)
P 750,000
70,000
(120,000)
P 700,000
2.
Sales
Gross Profit
Cost of Goods Sold
Finished Goods, end
3.

Prime Cost (P72,000/60%)
Factory Overhead
P170,000
(120,000)
P 50,000
4.

Direct Labor
Factory Overhead
Increase in Work in Process
Decrease in Finished Goods
Cost of Goods Sold
P200,000
300,000
400,000
( 30,000)
20,000
P890,000
5.

Increase in Direct Materials Inventory
P600,000
100,000
P700,000
6.
Finished Goods transferred out

Direct labor
P340,000
600,000
(100,000)
P840,000
(220,000)
(500,000)
page 14
Factory Overhead
Finished Goods, end
Cost of Goods Sold
Gross Profit
Sales
P120,000
P360,000
(240,000
P120,000
560,000
P680,000
7.
8.
Direct Materials
Direct Labor
Factory Overhead
9.
Total Manufacturing Cost = to Cost of Goods Manufactured

P120,000
50,000
P170,000

Work in Process end
Total Manufacturing Cost:
Direct Materials
Direct Labor
Factory Overhead
P190,000
30,000
P220,000
10. B
P3,400,000
1,600,000
2,400,000
P7,400,000
600,000
P8,000,000
(4,800,000)
P3,200,000
P60,000
80,000
40,000
180,000
P 40,000
TM 48
Liwasan Corporation
Cost of Goods Sold Statement
For the Year Ended December 31, 2010
Direct Materials:
Raw Materials Inventory, beginning
Add Freight-in on raw materials purchased
Delivered Cost of Raw Materials Purchases
Less Raw Materials Inventory, end
Direct Labor
Factory Overhead*
Add Work in Process, beg
P 176,000
P732,000
13,200
745,200
P 921,200
128,000
P 793,200
1,047,200
1,145,600
P2,986,000
59,600
P3,045,600
77,600
P2,968,000
108,400
P3,076,400
132,000
Cost of Goods Sold

* Factory Overhead excluding depreciation
Depreciation manufacturing
Total
page 15
P2,944,400
P 936,800
208,800
P1,145,600
TM 49
a. Raw Materials Purchases
Factory Supplies
Vouchers Payable
692,000
196,000
888,000
b.
no entry
c.
no entry
d.
Direct Labor
Cash
98,000
Depreciation Expense Factory Building and Equipment

Accumulated Depreciation Factory Building and
Equipment
44,000
e.
f.
g.
h.
i1.
i2.
Indirect Labor
Cash
Utilities Factory
Cash
Cash
98,000
44,000
372,000
372,000
52,000
52,000
166,000
166,000
Factory Supplies Inventory

Factory Supplies
P196,000 P186,000 = P10,000
10,000
Direct Materials Inventory, end

178,000
162,000
10,000
340,000
P692,000 + P256,000 P770,000 = P178,000

P770,000 + P186,000 + P98,000 + P44,000 + P372,000 +
P52,000 + P166,000 + P164,000 P1,690,000 = P162,000
i3.
i4.
Direct Materials Inventory, beginning
Work in Process Inventory, beginning
Factory Supplies
Direct Labor
Depreciation Expense Factory Building and Equipment
Indirect Labor
420,000
256,000
164,000
1,610,000
692,000
186,000
98,000
44,000
372,000
j.
k.
l1.
l2.
m.
Utilities Factory
Accounts Receivable
Sales
Cash
Accounts Receivable
page 16
52,000
166,000
2,524,000
2,524,000
2,390,000
2,390,000
Finished Goods, end

Income Summary
P344,000 + P1,690,000 P1,740,000 = P294,000
294,000
Income Summary
344,000
Vouchers Payable
Cash
936,000
294,000
344,000
936,000

APC Ch12sol.2011

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

APC Ch12sol.2011

Uploaded by

Copyright:

Available Formats

CHAPTER 12

Introduction to Cost Accounting

Lacbay Manufacturing Company

Lacbay Manufacturing Company

Chapter 12- Suggested Answers (APC-2011)

Raw Materials Put into Process

Raw Materials Put into Process

Total Manufacturing Cost

Cost of Goods Manufactured

Chapter 12- Suggested Answers (APC-2011)

Raw Materials Purchases

Factory Payroll Taxes

P66,000 + P64,000 + P4,000 + P16,000 + P8,000 + P36,000 +

P4,200 + P1,560 + P2,500 P184,000 = P18,260

Chapter 12- Suggested Answers (APC-2011)

Cost of Goods Sold (3)

Cost of Goods Manufactured

Direct Materials Used (1)

Cost of Goods Manufactured

Direct Materials Used (7)

Chapter 12- Suggested Answers (APC-2011)

Total Manufacturing Cost

Cost of Goods Sold

10. Total Manufacturing Cost

Total Manufacturing Cost (15)

12. Direct Materials Used

14. Cost of Goods Sold (13)

15. Cost of Goods Manufactured (14)

Chapter 12- Suggested Answers (APC-2011)

16. Direct Materials, January 1

18. Cost of Goods Manufactured

20. Cost of Goods Manufactured

Total Manufacturing Cost

Total Manufacturing Cost

Total Manufacturing Cost

Raw Materials Purchases

Other Factory Overhead

Chapter 12- Suggested Answers (APC-2011)

Work in Process, end

P36,000 + P70,000 + P280,000 + 60,000 + P28,400 +

Chapter 12- Suggested Answers (APC-2011)

Chapter 12- Suggested Answers (APC-2011)

Raw Materials, beginning

Chapter 12- Suggested Answers (APC-2011)

Indirect Materials Used

Direct Materials Used

Cost of Goods Manufactured

Chapter 12- Suggested Answers (APC-2011)

Raw Materials Purchased

Direct Materials, December 1

Beginning inventories (P80,000 + P50,000 + P120,000)

Cost of Goods Sold

Direct Materials, June 1

Direct Materials Used

Chapter 12- Suggested Answers (APC-2011)

Total Cost of Goods Placed in Process

Cost of Goods Manufactured

P200,000 + P230,000 P250,000 =

Chapter 12- Suggested Answers (APC-2011)

Total Manufacturing Cost

Raw Materials Purchased

Direct Materials Used

Finished Goods transferred out