Requirement 1: Requirement 2:

Account Title Debit Credit

1 Materials 28,000 Direct Materials
Accounts Payable 28,000 3,000
5,500
2 Work-in-Process - 401 5,500 8,500
Work-in-Process - 402 7,000
Work-in-Process - 403 9,500
Factory Overhead Control 3,000
Materials 25,000 Direct Materials
5,600
3 Materials 800 7,000
Work-in-Process - 403 500 12,600
Factory Overhead Control 300

4 Accounts Payable 1,000

Materials 1,000 Direct Materials
9,500
5 Payroll 39,000 -500
Withholding Tax Payable 3,025 9,000
SSS Premiums Payable 1,600
Medicare Contributions Payable 375
Pag Ibig Funds Payable 1,200
Accrued Payroll 32,800

Accrued Payroll 32,800

Cash 32,800

Work-in-Process - 401 10,400

Work-in-Process - 402 12,500
Work-in-Process - 403 10,500
Factory Overhead Control 5,600
Payroll 39,000

6 Factory Overhead Control 3,575

SSS Premiums Payable 2,000
Medicare Contributions Payable 375
Pag Ibig Funds Payable 1,200

7 Factory Overhead Control 15,000

Accu. Dep. - Factory Bldg. & Equipment 3,000
Prepaid Insurance 950
Accounts Payable 11,050

8 Work-in-Process 26,720
Factory Overhead Applied (33,400 x 80%) 26,720

9 Finished Goods 72,220

Work-in-Process - 401 31,720
Work-in-Process - 402 40,500
10 Accounts Receivable 44,408
Sales (31,720 x 140%) 44,408

Cost of Goods Sold 31,720

Finished Goods 31,720

11 Cash 35,000
Accounts Receivable 35,000
 Requirement 3:
Job 401
Direct Labor Factory Overhead
2,500 2,000
10,400 8,320 (10,400/33,400) x 26,720
12,900 10,320 Direct Materials:
Total: 31,720 Materials Inventory, Aug. 1
Add: Purchases
Job 402 Less: Purchase Returns
Direct Labor Factory Overhead Cost of Materials Available for Use
3,000 2,400 Less: Materials Inventory, Aug. 31
12,500 10,000 (12,500/33,400) x 26,720 Indirect Materials
15,500 12,400 Direct Labor
Total: 40,500 Applied Manufacturing Overhead
Manufacturing Costs
Job 403 Add: Work-in-Process, Aug. 1
Direct Labor Factory Overhead (10,500/33,400) x 26,720 Cost of Goods Placed in Process
10,500 8,400 Less: Work-in-Process, Aug. 31
Cost of Goods Manufactured
10,500 8,400 Add: Finished Goods, Aug. 1
Total: 27,900 Cost of Goods Available for Sale
Less: Finished Goods, Aug. 31
Cost of Goods Sold - Normal
Add: Underapplied Overhead [Actual (26,875) > A
Cost of Goods Sold - Actual
 22,000
28,000
- 1,000
s Available for Use 49,000
Inventory, Aug. 31 - 24,800
- 2,700 21,500
33,400
26,720
81,620
18,500
100,120
- 27,900
72,220
25,000
97,220
- 65,500
31,720
verhead [Actual (26,875) > Applied (26,720)] 155
31,875
Requirement 1:
Materials 4,300.00
Labor (300 x P8) 2,400.00
Overhead (200 x P15) 3,000.00
Total Manufacturing Cost 9,700.00

Requirement 2:
Materials 4,300.00
Labor (300 x P8) 2,400.00
Prime Cost 6,700.00

Requirement 3:
Labor (300 x P8) 2,400.00
Overhead (200 x P15) 3,000.00
Total Conversion Cost 5,400.00
 Account Title Debit Credit
a Materials 56,700
Accounts Payable 56,700

b Work-in-Process 45,360
Factory Overhead Control 8,505
Materials 53,865

c Work-in-Process 33,100
Factory Overhead Control 12,500
Payroll 45,600

d Factory Overhead Control 66,900

Cash 66,900

e Work-in-Process 33,100
Factory Overhead Applied 33,100

f Finished Goods 97,600

Work-in-Process 97,600

g Accounts Receivable 77,600

Sales 77,600

Cost of Goods Sold 51,320

Finished Goods 51,320
Requirement 1: Requirement 2:
Raw Materials Work-in-Process Account Title
BB 40,000 BB 77,800 1 Work-in-Process
31,500 29,500 60,700 Manufacturing Overhead Control
20,000
32,000
98,600 2 Work-in-Process
Manufacturing Overhead Control
Manufacturing
Finished Goods Overhead Control
BB 85,000 BB 4,000 3 Manufacturing Overhead Control
60,700 8,000 32,000
19,000
4 Work-in-Process (DL 20,000 x 160%)

Job 205(20,800/13,000 = 1.6 = 160%)

5 Finished Goods
Requirement 2:
Account Title Debit Credit
Work-in-Process 29,500
Manufacturing Overhead Control 4,000
Raw Materials 33,500

Work-in-Process 20,000
Manufacturing Overhead Control 8,000
Payroll 28,000

Manufacturing Overhead Control 19,000

Accounts Payable 19,000

Work-in-Process (DL 20,000 x 160%) 32,000

Manufacturing Overhead Applied 32,000
Job 205(20,800/13,000 = 1.6 = 160%)

Finished Goods 60,700

Work-in-Process 60,700

Job 206 51,300

Job 207 47,300
WIP Ending Inventory 98,600

Job 205 Job 206 Job 207

Beginning WIP 50,300 27,500 -
Direct Materials - 8,200 21,300
Direct Labor 4,000 6,000 10,000
Factory Overhead 6,400 9,600 16,000
60,700 51,300 47,300
Direct Materials 2,500
Direct Labor (15 hrs x P7) 105
Factory Overhead (6 hrs x P18) 108
Total Cost of Job 3051 2,713
Total Cost Incurred 202,000 Add beginning balance up to Applied Overhead
Less: Cost of Goods Manufactured - 185,000
Costs remaining in WIP 17,000
Less: Overhead 5,600
Direct Labor (5,600/80%) 7,000 - 12,600 I divided the Applied Overhead to the Direct Labor to get 80%
Direct Materials 4,400
pplied Overhead

to the Direct Labor to get 80% rate

Requirement 1:
Direct Labor Hours (P510/P8.50) 60 hrs

Overhead Application Rate: (P255/60 hrs) 4.25

Requirement 2:
Direct Labor Hours (P289/P8.50) 34 hrs

Overhead Application Rate:

34 hrs x P4.25/hr 144.50

Requirement 3:
Total WIP 6,800
Other WIP - 3,981
Cost remaining in WIP 2,819
Overhead 714
Direct Labor (OH x 2) 1,428 - 2,142
Direct Materials 677
Requirement 1:
Job No. DM DL OH Total
498 1,500 464 580 2,544
506 960 64 80 1,104
507 415 72 90 577
508 345 168 210 723
509 652 96 120 868
511 308 40 50 398
512 835 120 150 1,105
5,015 1,024 1,280 7,319

Requirement 2:
Actual FOH 1,480
Applied FOH 1,280
Underapplied FOH 200

Requirement 3:
Job 507 577
Job 508 723
Job 511 398
Job 512 1,105
Ending WIP 2,803
 Account Title Debit Credit
1 Materials 346,000
Cash 346,000

2 Work-in-Process 302,000
Factory Overhead Control 36,000
Materials 338,000

3 Work-in-Process 360,000
Factory Overhead Control 68,000
Administratvie Expenses 111,000
Cash 539,000

4 Selling Expenses 153,000

Cash 153,000

5 Factory Overhead Control 29,000

Cash 29,000

6 Factory Overhead Control 93,000

Depreciation Expense 9,000
Accumulated Depreciation 102,000

7 Work-in-Process 190,000
Factory Overhead Applied 190,000

8 Finished Goods 870,000

Work-in-Process 870,000

9 Cash 1,221,000
Sales 1,221,000

Cost of Goods Sold 855,000

Finished Goods 855,000

10 Factory Overhead Applied 190,000

Cost of Goods Sold (Underapplied) 36,000
Factory Overhead Control 226,000