NSTRUCTION: Write your answers and solutions in a piece of paper. Submit your answers in Google Classroom via attachments. LONG PROBLEM Consider the following data of the month for Abdul Production Company: Raw Materials, Beg. P 10,000 Finished Goods, Beg. P 20,000 Work-in-Process, Beg. P 15,000 A. Purchased raw material on account P28,500. B. Put material into production: P15,000 of direct material and P3,000 of indirect material. C. Accrued payroll of P90,000, of which 40% was direct labor, 20% was indirect labor, 20% was selling expense, and the remainder was administrative expense. Then after, the total payroll was paid. D. Depreciation for the Machinery is P40,000. The Machinery is used by all departments. 50% is used by Production Department, 25% by Sales Department, and the remaining is used for administrative purposes. E. Received utility bill for the month amounting to P10,000. 50% is for Production department, 20% is for Sales Department, and 30% for administrative purposes. F. Paid advance rentals for the next 3 months starting this month. The facility is equally shared by three departments. G. Factory Overhead is applied 80% of direct labor cost. H. 50% of the goods in process were completed. I. 75% of the goods completed were sold at a mark-up of 20% above cost. J. 50% of the amount due to supplier were paid. K. 50% of the accounts due from customers were collected. L. Overhead variance is considered immaterial and closed at the end of the month. Required: 1. Complete Journal Entries (key your entries by using letter A-L) 2. Schedule of Cost of Goods Manufactured 3. Schedule of Cost of Goods Sold
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
INSTRUCTION: Write your answers and solutions in a piece of paper. Submit your answers in Google Classroom via
attachments.
LONG PROBLEM
Consider the following data of the month for Abdul Production Company:
Raw Materials, Beg. P 10,000 Finished Goods, Beg. P 20,000 Work-in-Process, Beg. P 15,000
A. Purchased raw material on account P28,500.
B. Put material into production: P15,000 of direct material and P3,000 of indirect material.
C. Accrued payroll of P90,000, of which 40% was direct labor, 20% was indirect labor, 20% was selling expense, and the remainder was
administrative expense. Then after, the total payroll was paid.
D.
Sales Department, and the remaining is used for administrative purposes.
E. Received utility bill for the month amounting to P10,000. 50% is for Production department, 20% is for Sales Department, and 30% for
administrative purposes.
F. Paid advance rentals for the next 3 months starting this month. The facility is equally shared by three departments.
G. Factory Overhead is applied 80% of direct labor cost.
H. 50% of the goods in process were completed.
I. 75% of the goods completed were sold at a mark-up of 20% above cost.
J. 50% of the amount due to supplier were paid.
K. 50% of the accounts due from customers were collected.
L. Overhead variance is considered immaterial and closed at the end of the month.
Required:
1. Complete
2. Schedule of Cost of Goods Manufactured
3. Schedule of Cost of Goods Sold
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