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Acctg 7 Additional Exercises 12

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19 views4 pages

Acctg 7 Additional Exercises 12

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freaann03
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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EXERCISE 1

REQUIRED A. ABSORPTION COSTING

Cost of Goods Manufactured *Inventory, beg.


Direct Materials Used ₱ 30,000.00 Add: Cost of Goods Manufactured
Direct Labor 24,000.00 Direct Materials Used
Variable Manufacturing Overhead 12,000.00 Direct Labor
Fixed Manufacturing Overhead 44,000.00 Factory Overhead-variable
Total ₱ 110,000.00 Factory Overhead-fixed
Units Produced 2,200 Total
*Unit Cost ₱ 50.00 Total Available for Sale
Less: **Cost of Goods Sold
*Unit cost (₱110,000/2,200) Inventory, end

*Inventory, beg. (₱50×100)


**Cost of Goods Sold (₱50×2,000)

Inventory, beg (in units) 100


Add: Units Produced 2,200
Available for sale 2,300
Less: Units Sold 2,000
Inventory, end (in units) 300
Unit Cost ₱ 50.00
*Inventory, end ₱ 15,000.00

*Inventory, end (300×₱50)

REQUIRED B. VARIABLE COSTING

Cost of Goods Manufactured *Inventory, beg.


Direct Materials Used ₱ 30,000.00 Add: Cost of Goods Manufactured
Direct Labor 24,000.00 Direct Materials Used
Variable Manufacturing Overhead 12,000.00 Direct Labor
Total ₱ 66,000.00 Factory Overhead-variable
Units Produced 2,200 Total
*Unit Cost ₱ 30.00 Total Available for Sale
Less: **Cost of Goods Sold
*Unit Cost (₱66,000/2,200) Inventory, end

*Inventory, beg. (₱30×100)


**Cost of Goods Sold (₱30×2,000)

Inventory, beg (in units) 100


Add: Units Produced 2,200
Available for sale 2,300
Less: Units Sold 2,000
Inventory, end (in units) 300
Unit Cost ₱ 30.00
*Inventory, end ₱ 9,000.00

*Inventory, end (300×₱30)

EXERCISE 2

REQUIRED A. VARIABLE COSTING

ABC COMPANY
INCOME STATEMENT

Sales ₱ 256,000.00
Less: Cost of Sales
Variable Manufacturing Cost 96,000.00
Less: *Inventory, end 19,200.00
Total ₱ 76,800.00
Contribution Margin ₱ 179,200.00
Less: Fixed Costs
Manufacturing ₱ 64,000.00
Selling and Administrative 80,000.00
Total ₱ 144,000.00
Net Income ₱ 35,200.00

*Inventory, end (96,000/10,000) = ₱9.60×2,000

REQUIRED B. ABSORPTION COSTING

ABC COMPANY
INCOME STATEMENT

Sales ₱ 256,000.00
Less: Cost of Goods Sold
Variable Manufacturing Cost ₱ 96,000.00
Fixed Manufacturing Costs 64,000.00
Cost Of Goods Manufactured ₱ 160,000.00
Less: *Inventory, end 32,000.00
Cost of Goods Sold ₱ 128,000.00
Gross Profit ₱ 128,000.00
Less: Fixed Selling and Administrative Expenses 80,000.00
Net Income ₱ 48,000.00
*Inventory, end (96,000+64,000)/10,000 = ₱16×2,000
₱ 5,000.00
Goods Manufactured
Materials Used ₱ 30,000.00
24,000.00
y Overhead-variable 12,000.00
y Overhead-fixed 44,000.00
₱ 110,000.00
₱ 115,000.00
of Goods Sold 100,000.00
₱ 15,000.00

beg. (₱50×100)
oods Sold (₱50×2,000)

₱ 3,000.00
Goods Manufactured
Materials Used ₱ 30,000.00
24,000.00
y Overhead-variable 12,000.00
₱ 66,000.00
₱ 69,000.00
of Goods Sold 60,000.00
₱ 9,000.00

beg. (₱30×100)
oods Sold (₱30×2,000)

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