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    This document contains three practice problems from a Cost Accounting course. The first problem involves calculating direct labor costs, direct materials costs, and ending work-in-process inventory for a company using normal costing. The second problem involves analyzing various accounts and calculations for another company using normal costing. The third problem involves calculating different predetermined overhead rates for a company based on information about estimated production levels, costs, and capacity.

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    Surname First Name Middle Name Course Year Block

    Uploaded by

    Jay Bee Salvador
    35 views2 pages
    This document contains three practice problems from a Cost Accounting course. The first problem involves calculating direct labor costs, direct materials costs, and ending work-in-process inventory for a company using normal costing. The second problem involves analyzing various accounts and calculations for another company using normal costing. The third problem involves calculating different predetermined overhead rates for a company based on information about estimated production levels, costs, and capacity.

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    This document contains three practice problems from a Cost Accounting course. The first problem involves calculating direct labor costs, direct materials costs, and ending work-in-process inventory for a company using normal costing. The second problem involves analyzing various accounts and calculations for another company using normal costing. The third problem involves calculating different predetermined overhead rates for a company based on information about estimated production levels, costs, and capacity.

    Copyright:

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

    Surname First Name Middle Name Course Year Block

    Uploaded by

    Jay Bee Salvador
    This document contains three practice problems from a Cost Accounting course. The first problem involves calculating direct labor costs, direct materials costs, and ending work-in-process inventory for a company using normal costing. The second problem involves analyzing various accounts and calculations for another company using normal costing. The third problem involves calculating different predetermined overhead rates for a company based on information about estimated production levels, costs, and capacity.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Wesleyan University Philippines

    College of Business and Accountancy


    Cabanatuan City
    COST ACCOUNTING I

    SURNAME

    FIRST NAME

    MIDDLE NAME

    COURSE

    YEAR

    BLOCK

    SCORE

    Part I. PROBLEM SOLVING


    1. I Will Survive Company uses a normal costing. Its job costing system has
    two direct-cost categories (direct materials and direct labor) and one in direct
    cost category (manufacturing overhead). The following information is
    obtained from the companys records for 2016:
    Total Manufacturing Costs, P8,000,000
    Cost of finished goods manufactured, P7,920,000
    Manufacturing overhead applied, P3,600,000
    Manufacturing overhead was applied to production at a rate of 200% of direct
    labor costs.
    The peso amount of work in process inventory on January 1, 2016 was
    P320,000.
    Requirements:
    a. Compute for the total direct labor cost for 2016.
    b. Compute for the total cost of direct materials in 2016.
    c. Compute for the peso amount of work in process inventory on December 31,
    2016.
    2. Faith Company use normal costing in its job costing system. Partially
    completed T-account and additional information for the year for 2016 follows:
    Materials
    1/1 30,000
    900,000
    400,000

    Work-in-Process

    380,000

    1/1 20,000
    DL 360,000

    Manufacturing Overhead Control


    540,000

    Finished Goods
    1/1 10,000
    940,000

    Additional Information:
    a. Direct labor cost rate was P15 per hour.
    b. Manufacturing overhead was applied at P20 per direct labor hour.
    c. During the year, sales revenues were P1,090,000 and marketing expenses
    were P140,000.
    Answer the following questions:
    1. What was the amount of direct materials issued to production during
    2016?
    2. What was the amount of manufacturing overhead applied to jobs during
    2016?
    3. What was the cost of jobs completed during 2016?
    4. What was the balance of work in process inventory on December 31,
    2016?
    5. What was the cost of goods sold before adjustment for overapplied or
    underapplied overhead.
    6. What was the under or overapplied manufacturing overhead in 2016?
    7. What is the operating income or loss for 2016 assuming the under or
    overapplied overhead is closed to COGS?
    8. What is the operating income (loss) for 2016 assuming the under or
    overapplied overhead is pro rated to Work in Process, Finished Goods and
    Cost of Goods Sold?
    3. Discipline Corporation estimates the its production for the coming year will be
    10,000 units, which is 80% of normal capacity, with the following unit costs:
    Materials

    P 40.00

    Direct Labor

    P 60.00

    Direct labor is paid at the rate of P24 per hour. The machine should be run for
    20 minutes to produce 1 unit. Total estimated overhead is expected to consist
    of P400,000 for variable overhead and P400,000 for fixed overhead.
    Determine the following:
    a. Pre-determined overhead rate base on units of production, using the
    expected actual capacity activity level
    b. Pre-determined overhead rate based on material cost
    c. Pre-determined overhead rate based on direct labor cost
    d. Pre-determined overhead rate based on direct labor hours
    e. Pre-determined overhead rate based on machine hours
    f. Overhead rate based on units of production using the normal capacity
    level

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