Chapter 1 Assignment Chapter 5 Assignment

Multiple Choice Answers: Multiple Choice Answers:

1. B 16. D 31. B 1. C 11. B 21. A
2.C 17. D 32. B 2. A 12. D 22. B
3. D 18. B 33. C 3. C 13. A
4. D 19. C 34. C 4. D 14. A P5-4 New Delhi Company
5. C 20. A 35. D 5. C 15. A a. DIRECT DISTRIBUTION METHOD
6. D 21. C 36. B 6.A 16. B
7. C 22. B 37. A 7.A 17. A
8. B 23. C 38. A 8. D 18. A
9. C 24. A 39. B 9. A 19. C
10. A 25. B 40. C 10. A 20
11.A 26. D
12.C 27, D
13. D 28. C b. SEQUENTIAL/ STEP-DOWN METHOD
14. B 29. A
15. D 30. D

c. ALGEBRAIC OR RECIPROCAL METHOD

Step 1: equation

Step 3: Susbtitute
Solution: CHAPTER 1
#29 Direct Material consumed 45,000.00 #33
Direct Labor 30,000.00 Salaries(75%)
Direct Expenses 10,000.00 Rent
Total Prime cost 85,000.00 Total fixed cost

#30 Sales 350,000.00 #34 Variable cost

Manufacturing Cost (100,000.00) Parcels
Gross margin 250,000.00 variabe cost per parcel
 Opex (30,000.00) # or parcels
Operatng Income 220,000.00 Variable cost
Add fixed cost
#31 COGS Total estimated cost
COGmanufactured 30,000.00
Total units produced 24,000.00 units #35 Direct materials &direct labor
Cost per unit 1.25 Other variable manu. Costs
Goods Sold 22,000.00 Depreciation-building & equip
Cost of goods sold 27,500.00 Other fixed manuf. Cost.
Total product cost
#32 Direct materials 100,000.00
Direct Labor 90,000.00
Total= 190,000.00
Solution: CHAPTER 5
#5 Applied Overhead 310,000.00 #13 Total variable cost
Actual Overhead 340,600.00 Multiply by
Underapplied (30,600.00) Allocated to Mixing
#6
Order Cost #14 Total fixed cost
March 1800 4,320.00 Multiply by
January 1200 3,120.00 Allocated to Mixing
600 1,200.00

Cost 1,200.00
Order 600.00
#15 STEP-DOWN M
est. variable cost/order 2.00 Dept Cost.
#7 high-low method Maintenance alloc
Units produced Cost Personel Alloc
December 18000 21,600.00 TOTAL COST
July 10000 20,000.00 #16
8000 1,600.00 DIRECT M
Dept Cost.
Cost 1,600.00 Maintenance alloc
Unit 8,000.00

variable cost per unit 0.20 #17 STEP-DOWN M

Dept Cost.
#8 Maintenance alloc
December July
Mixed Cost 21600.00 20000.00 #18
Less Variable Co3600.00 2000.00 Actual Overhead
Fixed Cost 18000 18,000.00 Applied
 Units per unit cost Total Overapplied
#9 Variable cost 14,000.00 0.20 2,800.00 #19
Fixed cost 18,000.00 Direct labor hours
Total 20,800.00 predetermined rate
#10 Applied Overhead
#20.
285000(882000 -1220000)=285000(882000-

#21. 16000

16000
#22 20000
0.25
5000
 Support Producing
Maint Tech Mixing Finishing
M allocation 20% 30% 50%
T allocation 10% 20% 70%

TRIBUTION METHOD
Support/ Service Department Producing Department
Maintenance Technology Mixing Finishing total
Dept. costs 83,200.00 50,000.00 133,200.00
Maintenance Alloc (83,200.00) 31,200.00 52,000.0 -
Technology Allocation (50,000.00) 11,111.11 38,888.89 -
Total Cost after Alloca - - 42,311.11 90,888.89 133,200.00

L/ STEP-DOWN METHOD
Support/ Service Department Producing Department
Maintenance Technology Mixing Finishing total
Dept. costs 83,200.00 50,000.00 133,200.00
Maintenance Alloc (83,200.00) 16,640.00 24,960.00 41,600.00 -
Technology Alloc (66,640.00) 14,808.89 51,831.11 -
Total cost after alloca - - 39,768.89 93,431.11 133,200.00

OR RECIPROCAL METHOD
Support/ Service Department Producing Department
Maintenance Technology Mixing Finishing total
Dept. costs 83,200.00 50,000.00 133,200.00
Maintenance Alloc (90,000.00) 18,000.00 27,000.00 45,000.00 -
Technology Alloc 6,800.00 (68,000.00) 13,600.00 47,600.00 -
Total Cost after Alloca - - 40,600.00 92,600.00 133,200.00
M= 83200 + 10% T Step 2: substitute M= 83200+ 10%( 50000+20%M)
T= 50000 + 20% M M= 83200+ 5000+ .02M
M=88200+.02M
M-.02M= 88200
T= 50000+20%(90000) .98M = 88200
T= 68000 0.98 0.98
M= 90000
300,000.00
180,000.00 #36 Raw Materials Purchases
480,000.00 Direct Labor
Factory Overhead
75000-15000= 60,000.00 Increase in Raw Materials Inventory
20,000.00 Decrease in Work-in-Process Inventory
3.00 Increase in Finished Goods Inventory
 12000 Cost of Goods Sold
36,000.00
15,000.00 #37 Total Manufacturing Cost
51,000.00 Less: RM Purchases
Conversion Cost
ls &direct labor 700,000.00
manu. Costs 100,000.00 #38 Raw Material Purchases
building & equip 80,000.00 Direct Labor
18,000.00 Decrease in Raw Materials Inventory
898,000.00 Decrease in Work-in-Process Inventory
Tota Manufacturing Cost
Cost of goods Manufactured
Increase in Finished Goods Inventory
Cost of Goods Sold
₱250,000.00
18/30
₱150,000.00

₱80,000.00
13 / 30
₱32,000.00

Maintenance Personnel Cutting Molding

120,000.00 60,000.00 140,000.00 150,000.00
120,000.00 20,000.00 52,500.00 47,500.00
80,000.00 32,000.00 48,000.00
- - 224,500.00 245,500.00

Maintenance Personnel Cutting Molding

120,000.00 60,000.00 140,000.00 150,000.00
(120,000.00) 63,000.00 57,000.00
(60,000.00) 24,000.00 36,000.00
227,000.00 243,000.00
Maintenance Personnel Cutting Molding
120,000.00 60,000.00 140,000.00 150,000.00
120,000.00 20,000.00 47,500.00

500,000.00
600,000.00
 100,000.00

150,000.00
6.00
900,000.00

00 -1220000)=285000(882000-122000)

(80000 20/100 )
110,000 #39 Direct Materials Used 120,000 #40 Raw Materials, October
80,000 Direct Labor Cost 144,000
120,000 Manufacturing Overhead 164,500
(15,000) OPEN wip 50,000 RM used
19,000 close wip (62,500) Direct Labor
(26,000) Opening Finished Goods 72,000 Factory Overhead
288,000 Closing Finished Goods (68,000) Total Manufacturing Co
COGS 420,000 Add: WIP, October 1
219,000 Selling and Administrative 140,000 Less: WIP, October 31
(90,000) total OPEX 560,000 Cost of Goods Manufac
129,000 Add: Finished Goods, O
Less: Finished Goods, D
90,000 COGS
50,000
4,000 0.6
21,000
219,000 Sales 565,000
384,000 Cost of Goods Sold 339,000
(45,000) Gross Profit (40%) 226,000
339,000
Raw Materials, October 1 58,600
Add: Raw Materials Purchased 72,000
Less: Raw Materials, October 31 (60,200)
70,400
Direct Labor 40,000
Factory Overhead 64,000
Total Manufacturing Cost 174,400
Add: WIP, October 1 46,000
Less: WIP, October 31 (62,000)
Cost of Goods Manufactured 158,400
Add: Finished Goods, October 1 87,300
Less: Finished Goods, December 31 (90,700)
155,000