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    Chapter 5 Additional Exercises

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    The sorcerer
    The document contains two accounting problems related to cost accounting and control. Problem 1 provides account balances for a company and asks questions about raw material costs, manufacturing overhead application, inventory balances, and cost of goods sold. Problem 2 provides manufacturing costs and inventory information for a different company for the month of January 2021 and asks questions about units transferred, work in process costs, preparing a manufacturing statement, unit costs, and overhead debits.

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    Chapter 5 Additional Exercises

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    The sorcerer
    61 views2 pages
    The document contains two accounting problems related to cost accounting and control. Problem 1 provides account balances for a company and asks questions about raw material costs, manufacturing overhead application, inventory balances, and cost of goods sold. Problem 2 provides manufacturing costs and inventory information for a different company for the month of January 2021 and asks questions about units transferred, work in process costs, preparing a manufacturing statement, unit costs, and overhead debits.

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    The document contains two accounting problems related to cost accounting and control. Problem 1 provides account balances for a company and asks questions about raw material costs, manufacturing overhead application, inventory balances, and cost of goods sold. Problem 2 provides manufacturing costs and inventory information for a different company for the month of January 2021 and asks questions about units transferred, work in process costs, preparing a manufacturing statement, unit costs, and overhead debits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    Chapter 5 Additional Exercises

    Uploaded by

    The sorcerer
    The document contains two accounting problems related to cost accounting and control. Problem 1 provides account balances for a company and asks questions about raw material costs, manufacturing overhead application, inventory balances, and cost of goods sold. Problem 2 provides manufacturing costs and inventory information for a different company for the month of January 2021 and asks questions about units transferred, work in process costs, preparing a manufacturing statement, unit costs, and overhead debits.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Additional Exercises – Chapter 5 (Cost Accounting & Control)

    Problem 1
    The Chachacha Co. had the following account balances:

    Raw Material Manufacturing Overhead


    Bal. 1/1 30,000 Credits ? Debits 385,000 Credits ?
    Debits 420,000

    Bal. 12/31 60,000

    Work in Process Factory Wages Payable


    Bal. 1/1 70,000 Credits 810,000 Debits 179,000 Bal.1/1 10,000
    Direct material 320,000 Credits 175,000
    Direct labor 110,000
    Overhead 400,000 Bal. 12/31 6,000

    Bal. 12/31 ?

    Finished Goods Cost of Goods Sold


    Bal. 1/1 40,000 Credits Debits ?
    ?
    Debits ?

    Bal. 12/31 130,000

    Required:
    a. What was the cost of raw material put into production during the year?
    b. How much of the material from question 1 consisted of indirect material?
    c. How much of the factory labor cost for the year consisted of indirect labor?
    d. What was the cost of goods manufactured for the year?
    e. What was the cost of goods sold for the year (before considering under- or overapplied
    overhead)?
    f. If overhead is applied to production on the basis of direct material, what rate was in effect
    during the year?
    g. Was manufacturing overhead under- or overapplied? By how much?
    h. Compute the ending balance in the Work in Process Inventory account. Assume that this
    balance consists entirely of goods started during the year. If P32,000 of this balance is direct
    material cost, how much of it is direct labor cost? Manufacturing overhead cost?
    Problem 2
    The following information was taken from the records of the Sikhye Corporation for the month of January
    2021. (There were no inventories of work in process or finished goods on January 1.)

    Units Cost
    Sales during month 8,000 P ?
    Manufacturing costs for month:
    Direct material 32,000
    Direct labor 20,000
    Overhead costs applied 15,000
    Overhead costs under-applied 800
    Inventories, January 31:
    Work in process 1,000 ?
    Finished goods 2,000 ?
    Indirect manufacturing costs are applied on a direct labor cost basis. The under-applied balance is
    due to seasonal variations and will be carried forward. The following cost estimates have been
    submitted for the work in process inventory of January 31: material, P3,000; direct labor, P2,000.

    Required:

    a. Determine the number of units that were completed and transferred to finished goods during
    the month.

    b. Complete the estimate of the cost of work in process on January 31.

    c. Prepare a manufacturing statement for the month.

    d. Determine the cost of each unit completed during the month.

    e. Determine the total amount debited to the Overhead Control accounts during the month.

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