1
CHAPTER 1
Multiple Choice Questions- Theoretical 1. 2. 3. 4. 5.
a c a c d
6. b 7. c 8. d 9. a 10. b
11. d 12. a 13. b 14. d 15. a
16. a 17. b 18. d 19. b 20. a
21. 22. 23. 24. 25.
b c c d c
26. 27. 28. 29. 30.
c a c c d
Multiple Choice Questions - Computational 1.
( b)
Direct Materials Direct Labor Factory Oer!ead" De#reciatio$ % Factory e&'i#(e$t Factory re$t Factory i$s'ra$ce Materials !a$dli$) Manufacturin cost $.
P1,000 2,000 500 1,500
5,000 P!"#"""
(a)
Decrease i$ *i$is!ed )oods i$e$tory +dd" a- (aterials #'rc!ased Direct labor #ayroll Factory oer!ead otal Less" /$crease i$ ra- (aterials i$e$tory Cost of oo%s sol% .
P47,000 28,000
P35,000 P430,000 200,000 300,000
930,000 P965,000 15,000 P&'"#"""
( %) irect labor- *aes of machine operations irect materials+ Metal -ire Plastic coati$)
P$""#"""
P500,000 380,000
P!!"#"""
1
2
,.
'.
0.
(c)
Materials i$e$tory, be)i$$i$) P'rc!ases Materials aailable *or 'se Materials i$e$tory, e$di$) Materials 'sed Direct labor Factory oer!ead Ma$'*act'ri$) cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$di$) Cost of oo%s manufacture%
P 32,400 40,000 72,400 34,000 38,400 33,000 17,160 88,560 7,200 95,760 16,240 P &#'$"
( %) Materials i$e$tory, i$e$tory, a$. 1 P'rc!ases Frei)!t i$ Materials aailable *or 'se Materials i$e$tory, Dec. 31 Materials 'sed Direct labor Factory oer!ead actor/ cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 Cost of oo%s sol%
P 17,000 240,000 3,000 260,000 19,000 241,000 320,000 188,000 ,&#""" 12,000 761,000 13,000 748,000 62,000 810,000 46,000 P0,#"""
(b) ol2e up3ar% from Cost of 4oo%s ol%. Materials i$e$tory, a$. 1 Purchases (s5uee6e) Materials aailable *or 'se Materials i$e$tory, Dec. 31 Materials 'sed Direct labor Factory oer!ead Factory cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$ 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 ost o* )oods sold )ie$
P 16,000 $#""" 88,000 17,000 71,000 30,000 20,000 121,000 16,000 137,000 30,000 107,000 14,000 121,000 20,400 P100,600
(1)
($)
2
2
,.
'.
0.
(c)
Materials i$e$tory, be)i$$i$) P'rc!ases Materials aailable *or 'se Materials i$e$tory, e$di$) Materials 'sed Direct labor Factory oer!ead Ma$'*act'ri$) cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$di$) Cost of oo%s manufacture%
P 32,400 40,000 72,400 34,000 38,400 33,000 17,160 88,560 7,200 95,760 16,240 P &#'$"
( %) Materials i$e$tory, i$e$tory, a$. 1 P'rc!ases Frei)!t i$ Materials aailable *or 'se Materials i$e$tory, Dec. 31 Materials 'sed Direct labor Factory oer!ead actor/ cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 Cost of oo%s sol%
P 17,000 240,000 3,000 260,000 19,000 241,000 320,000 188,000 ,&#""" 12,000 761,000 13,000 748,000 62,000 810,000 46,000 P0,#"""
(b) ol2e up3ar% from Cost of 4oo%s ol%. Materials i$e$tory, a$. 1 Purchases (s5uee6e) Materials aailable *or 'se Materials i$e$tory, Dec. 31 Materials 'sed Direct labor Factory oer!ead Factory cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$ 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 ost o* )oods sold )ie$
P 16,000 $#""" 88,000 17,000 71,000 30,000 20,000 121,000 16,000 137,000 30,000 107,000 14,000 121,000 20,400 P100,600
(1)
($)
2
3
.
!.
&.
(c) Direct (aterials 'sed Direct labor Factory oer!ead" Factory s'##lies /$direct labor Mac!i$e (ai$te$a$ce a$d re#air Factory re$t, li)!t a$d #o-er De#reciatio$ Payroll taes Factory cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 Cost of oo%s manufacture% Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 Cost of oo%s sol% ( b) a- (aterials i$e$tory, be)i$$i$) P'rc!ases Materials aailable *or 'se a- (aterials i$e$tory, e$di$) a- (aterials 'sed Direct labor Factory oer!ead" /$direct labor aes, 'tilities a$d de#reciatio$ Factory cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$d ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, be)i$$i$) oods aailable *or sale Fi$is!ed )oods i$e$tory, e$d Cost of oo%s sol% ( b) Direct (aterials 'sed Direct labor Factory oer!ead Factory cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$d ost o* )oods (a$'*act'red inishe% oo%s in2entor/# beinnin (s5uee6e) oods aailable *or sale Fi$is!ed )oods i$e$tory, e$d ost o* )oods sold
P100,000 250,000 P 6,000 50,000 10,000 24,000 10,000 30,000
130,000 480,000 30,000 510,000 40,000 ,"#""" 50,000 520,000 60,000 P,0"#"""
(1)
($)
P 44,000 600,000 644,000 60,000 584,000 240,000 P120,000 100,000
220,000 1,044,000 80,000 1,124,000 96,000 1,028,000 50,000 1,078,000 36,000 P1#",$#""" P 500,000 600,000 700,000 1,800,000 200,000 2,000,000 250,000 1,750,000 01"#""" 2,360,000 760,000 P1,600,000
3
4
1".
11.
(%) Direct (aterials, Dec. 31, 197 P'rc!ases +ailable *or 'se irect materials# ec. 1# 1&7! (s5uee6e) Direct (aterials 'sed P301,000 P180,000 Direct labor Factory oer!ead P180,000 : 60; 40; < Factory cost or i$ #rocess, Dec 31, 197 otal *or8 in process# ec. 1# 1&7! (s5uee6e) ost o* )oods (a$'*act'red Fi$is!ed )oods, Dec. 31, 197 oods aailable *or sale inishe% oo%s# ec. 1# 1&7! (s5uee6e) ost o* )oods sold P500,000 80;
P 16,000 170,000 186,000 0'#""" 121,000 180,000 120,000 421,000 34,000 455,000 $'#""" 430,000 30,000 460,000 0"#""" P400,000
(1)
($)
()
(a) (a) ol2 ol2ee up3a up3ar% r% from from Cost Cost of 4oo% 4oo%ss ol% ol%
a- (aterials i$e$tory, 197 Purchases (s5uee6e) Materials aailable *or 'se a- (aterials i$e$tory, 198 a- (aterials 'sed Direct labor Factory oer!ead s&'ee=e Ma$'*act'ri$) cost or i$ #rocess i$e$tory, 197 otal or i$ #rocess i$e$tory, 198 Cost of oo%s manufacture% (5uee6e) Fi$is!ed )oods i$e$tory , 197 oods aailable *or sale Fi$is!ed )oods i$e$tory , 198 ost o* )oods sold )ie$ +ccr'ed *actory #ayroll, 197 Direct labor /$direct labor +ccr'ed *actory #ayroll, 198 Pa/ment of pa/roll
P 60,000 0"#""" 690,000 90,000 600,000 410,000 821,000 1,831,000 34,000 1,865,000 35,000 1#!"#""" 46,000 1,876,000 36,000 P1,840,000 P 6,200 410,000 140,000 70,000 P',&#$""
(1)
($)
()
4
5
1$.
1.
(b) ol2e up3ar% from Cost of 4oo%s ol%. a- (aterials i$e$tory, a$. 1 4ross purchases (s5uee6e) Frei)!t i$ a- (aterials aailable *or 'se a- (aterials i$e$tory, Dec. 31 a- (aterials 'sed Direct labor Factory oer!ead" /$direct labor P12,160 Factory oer!ead e#e$ses 31,730 /$direct (aterials 21,390 Ma$'*act'ri$) cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red 16,000 '$its Fi$is!ed )oods i$e$tory, a$. 1 500 '$its P12> oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 1,500 '$its P12 ost o* )oods sold 15,000 '$its P12
P 11,600 !!#01" 5,570 105,800 9,640 96,160 32,640
(1)
65,280 194,080 5,740 199,820 7,820 192,000 6,000 198,000 18,000 P180,000
> P192,000 : 16,000 '$its ? P12 @ales ost o* )oods sold 4ross profit
P360,000 180,000 P1!"#"""
(%) Materials i$e$tory, be)i$$i$) P'rc!ases Materials aailable *or 'se Materials i$e$tory, e$di$) Materials 'sed Direct labor P15,000 A 2:3 Factory oer!ead Factory cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$di$) ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, be)i$$i$) oods aailable *or sale Fi$is!ed )oods i$e$tory, e$di$) Cost of oo%s sol% @ales ost o* )oods sold ross #ro*it O#erati$) e#e$ses P72,000 6; O#erati$) i$co(e Ot!er e#e$ses P72,000 5; 9et income before income ta7
P 8,000 36,000 44,000 8,500 35,500 22,500 15,000 73,000 8,000 81,000 15,000 66,000 7,000 73,000 10,200 P0$#!"" P 72,000 62,800 9,200 4,320 4,880 3,600 P 1#$!"
($)
(1)
($)
5
6
1,.
(a)
ost o* )oods sold Fi$is!ed )oods i$e$tory, Dec 31 4oo%s a2ailable for sale @ales ost o* )oods sold ross #ro*it O#erati$) e#e$ses" Mareti$) e#e$ses e$eral a$d ad(i$istratie e#e$ses :peratin income 1'.
P111,000 17,500 P1$!#'""
(1)
P182,000 111,000 71,000 P14,000 22,900
36,900 P ,#1""
($)
Factory oer!ead" /$direct labor Factory !eat, li)!t a$d #o-er Factory re$t Factory i$s'ra$ce Prod'ctio$ s'#erisorBs salary /$direct (aterials 'sed P5,600CP16,500 P5,180 Oerti(e #ay 250 !o'rs P22 .5< Total
P 22,000 11,220 18,500 2,000 5,000 16,920 2,750 P!#&"
(1)
Direct (aterials i$e$tory, Marc! 1 P'rc!ases +ailable *or 'se Direct (aterials i$e$tory, Marc! 31 Direct (aterials 'sed Direct labor 4,250 !o'rs P22 Factory oer!ead 1 Factory cost or i$ #rocess i$e$tory, Marc! 1 otal or i$ #rocess i$e$tory, Marc! 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, Marc! 1 oods aailable *or sale inishe% oo%s in2entor/# March 1 (5uee6e) ost o* )oods sold )ie$
P 10,250 105,000 115,250 12,700 102,550 93,500 78,390 274,440 60,420 334,860 52,800 282,060 45,602 327,662 ,#00$ P280,000
(%)
($)
6
7
10.
(%)
Materials, i$e$tory, be)i$$i$) Purchases (5uee6e) +ailable *or 'se Materials i$e$tory, e$di$) a- (aterials 'sed irect labor ;(P0!0#"""-P$0#""") < 10" => Factory oer!ead P225,000 60; Ma$'*act'ri$) cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$di$) Cost of oo%s manufacture% 1.
P 75,000 0#""" 411,000 85,000 326,000 $$'#""" 135,000 686,000 80,000 766,000 30,000 P 0#"""
($)
()
(c)
Materials i$e$tory, 'ly 1 P'rc!ases Frei)!t i$ +ailable *or 'se Materials i$e$tory, 'ly 31 Direct (aterials 'sed Direct labor Factory oer!ead P468,400C P116,000 90;< Manufacturin cost or i$ #rocess i$e$tory, 'ly 1 otal or i$ #rocess i$e$tory, 'ly 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, 'ly 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, 'ly 31 Cost of oo%s sol% 1!.
(1)
P 88,000 366,000 6,000 460,000 64,000 396,000 523,000 572,800 1#,!&#!"" 19,800 1,521,600 38,800 1,482,800 44,200 1,527,000 66,000 P1#,01#"""
($)
P 60,000 40,000 P1""#"""
(1)
P 40,000 50,000 P &"#"""
($)
(1)
(b)
Direct (aterials" Materials i$e$tory, Dec 1 P'rc!ases Materials i$e$tory, Dec 31 Direct labor Prime cost Direct labor Factory oer!ead P40,000 A P6.40 P8 Con2ersion cost
P24,000 56,000 20,000
7
8
1&.
$".
(%)
1. Direct (aterials i$e$tory, e$d P100,000 % P70,000
P30,000
2. or i$ #rocess co$trol, e$d P320,000 % P305,000
P15,000
3.
P25,000
Fi$is!ed )oods co$trol, e$d, P325,000 % P300,000
(a) irect materials# ec. 1# $""! (5uee6e) P'rc!ases +ailable *or 'se Direct (aterials, Dec 199 Direct (aterials 'sed )ie$ Direct labor P72,000 A 200; +##lied *actory oer!ead Ma$'*act'ri$) cost *or8 in process in2entor/# ec. 1# $""! (5uee6e) otal or i$ #rocess i$e$tory, Dec. 31, 199 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, Dec. 31, 198 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31, 199 ost o* )oods sold )ie$
$1.
P "#""" 90,000 120,000 20,000 100,000 36,000 72,000 208,000 #""" 211,000 35,000 176,000 50,000 226,000 46,000 P180,000
(1)
($)
(a)
Materials i$e$tory, a$. 1 P 34,200 P'rc!ases P364,000 C P8,600 % P5,200 367,400 +ailable *or 'se 401,600 Materials i$e$tory, Dec. 31 49,300 Direct (aterials 'sed 352,300 Direct labor 162,500 Factory oer!ead P21,350 C P83,400 C P47,900 152,650 Ma$'*act'ri$) cost 667,450 or i$ #rocess i$e$tory, a$ 1 81,500 otal 748,950 or i$ #rocess i$e$tory, Dec. 31 42,350 ost o* )oods (a$'*act'red 4,000 '$its 706,600 Fi$is!ed )oods i$e$tory, a$ 1 300 '$its 48,600 oods aailable *or sale 4,300 '$its 755,200 Fi$is!ed )oods i$e$tory, Dec. 31 420 '$its P706,600 A 4,000 '$its< 74,193 ost o* )oods sold P281,007 (1) P,#1&?,$" units @ P10.0'
2 @ales 3,880 '$its P220 ost o* )ods sold 4ross profit
P853,600 281,007 P1$#'&
8
9
$$.
(c)
Materials 'sed Direct labor +##lied *actory oer!ead P290,000 30; Factory cost or i$ #rocess i$e$tory, +#ril 1, 197 otal or i$ #rocess i$e$tory, +#ril 1, 198 ost o* )oods (a$'*act'red
$.
P 440,000 290,000 87,000 817,000 41,200 858,200 42,500 P 815,700
nit cost (P!1'#"" < 1!#""" nits)
P
+##lied *actory oer!ead +ct'al *actory oer!ead /$direct labor Li)!t a$d #o-er De#reciatio$ e#airs Miscella$eo's n%er-applie% factor/ o2erhea%
P 87,000 P46,000 4,260 4,700 5,800 29,000
,'. $
(1)
89,760 P ($#0")
($)
P182,000 180,000 P $#"""
(1)
(b)
+##lied *actory oer!ead P70,000 C P112,000 +ct'al *actory oer!ead :2er-applie% factor/ o2erhea% @ales" Prod'ct E 9,000 P30 Prod'ct 8,800 P50 ost o* )oods sold @c!. 1 ross #ro*it O#erati$) e#e$ses :peratin income
P270,000 440,000
P710,000 512,600 197,400 100,900 P &0#'""
($)
@c!. 1" Ma$'*act'ri$) cost P210,000 C P296,000 Ge)i$$i$) i$e$tories P21,000 C P33,300 otal H$di$) i$e$tories P42,000 C P3,700 ost o* )oods sold at $or(al Oera##lied *actory oer!ead ost o* )oods sold at act'al
P506,000 54,300 560,300 45,700 514,600 2,000 P512,600
9
10
$,.
$'.
(%)
Direct labor 8,000 !rs. P5.60 C 4,600 !rs. P6.00 Factory oer!ead 8,000 !rs. P6.00 C 4,600 !rs P8.00 Con2ersion cost
P 72,400 84,800 P1'#$""
(1)
Materials i$e$tory, be)i$$i$) P'rc!ases +ailable *or sale Materials i$e$tory, e$di$) Direct (aterials 'sed o$ersio$ cost Factory cost or i$ #rocess i$e$tory, be)i$$i$) otal or i$ #rocess i$e$tory, e$di$) ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, be)i$$i$) oods aailable *or sale Fi$is!ed )oods i$e$tory, e$di$) Cost of oo%s sol%
P 20,000 60,000 80,000 18,000 62,000 157,200 219,200 15,000 234,200 17,600 216,600 22,000 238,600 17,000 P$$1#0""
($)
(c)
Materials i$e$tory, +#ril 1, 198 P'rc!ases +ailable *or 'se Materials i$e$tory, '$e 30, 198 Direct (aterials 'sed Direct labor Factory oer!ead Factory cost Fi$is!ed )oods i$e$tory, +#ril 1, 198 oods aailable *or sale Fi$is!ed )oods i$e$tory, '$e 30, 198 200 P395 ost o* )oods sold nit cost of e5uipment manufacture% (P,#&# '"" < 1$#'"" units)
P 268,000 1,946,700 2,214,200 167,000 2,047,700 2,125,800 764,000 4,937,500 43,000 4,980,500 79,000 P4,901,500 P&'.""
@ales ost o* )oods sold ross #ro*it
P 6,634,000 4,901,500 P 1,732,500
Per unit (P1$#'"" < 1$#,"")
P1&. $
ross #ro*it O#erati$) e#e$ses Iet i$co(e
P 1,732,500 977,000 P 755,500
Per unit (P''# '"" < 1$#,"")
P 0".&
(1)
($)
()
10
11
$0
$.
$!.
(%)
Predeter(i$ed oer!ead rate P96,000:P120,000
80;
Applie% factor/ o2erhea% (P!#""" 7 !"=) +ct'al *actory oer!ead n%erapplie% factor/ o2erhea%
P0#,"" 7,200 P !""
($)
(%) (1)
/$direct labor e$t % *actory b'ildi$) /$direct (aterials 'sed Ot!er *actory oer!ead costs Total
P
($)
Applie% factor/ o2erhea% costs (10#""" B hours 7 P)
P11$#"""
()
Direct Materials 'sed Direct labor +##lied *actory oer!ead Cost of oo%s sol%
P250,000 300,000 114,000 P00,#"""
6,000 60,000 8,000 40,000 P11,#"""
(%)
ost o* )oods #laced i$ #rocess Fi$is!ed )oods *or8 in process en% (Dob ")
$&.
(1)
P360,000 320,000 P ,"#"""
(%) (1)
otal (a$'*act'ri$) costs Direct labor P225,000:72; +##lied *actory oer!ead P900,000 25; Direct (aterials 'sed
2
M*). cost C /P,be) ? /P, e$d C OM P900,000 C .80E ? E C P850,000 .20E ? P50,000 E ? P$'"#""" *P# en%
P900,000 312,500 225,000 P362,500
0
11
12
".
(c) Predeter(i$ed oer!ead rate 120,000:P160,000
75;
or i$ #rocess, May 31 P580,000 % P501,800 Less" o$ersio$ cost Direct labor " ob 123 P12,000 ob 456 12,800 +##lied *actory oer!ead" ob 123 P12,000 75; P 9,000 ob 456 9,600 irect materials
1.
P78,200
P24,800
18,600
43,400 P,#!""
(a)
Direct (aterials Direct labor +##lied *actory oer!ead otal
ept. Aept. F Total P25,000 P 5,000P 30,000 20,000> 30,000 50,000 40,000 15,000>> 55,000 P85,000 P50,000 P1'#"""
P40,000:200; >> P30,000 50; $.
(b) Gala$ce o* or i$ Process acco'$t, 4:30:08 Direct labor +##lied *actory oer!ead P2,000 80; irect materials
.
P 8,800 2,000 1,600 P '#$""
(b)
Predeter(i$ed oer!ead rate P11,800 : P14,750
80;
Let E ? Direct labor !ere*ore 80E ? +##lied *actory oer!ead Fi$is!ed )oods Less" Direct (aterials 'sed P15,500 % P3,200 Pri(e cost
P37,500 12,300 P25,200
E C .80E ? P25,200 180E ? P25,200 G @ P1,#""" irect labor .!"G @ P11#$"" Applie% factor/ o2erhea%.
12
13
,.
(c)
(1)
($)
()
'.
Ma$'*act'ri$) cost /P, Dec. 1" Direct (aterials 3,000 P2.40 Direct labor 3,000 P.80 +##lied FO 48 !rs P100 otal /P, Dec. 31" DM 2,000 P2.40 DL 2,000 P.80 +##lied FO 32 !rs. P100 Cost of oo%s manufacture% Fi$is!ed )oods, Dec. 1 oods aailable *or sale Fi$is!ed )oods, Dec. 31" DM DL +##lied FO P100 60 !rs Cost of oo%s sol%
P180,000 P30,000 60,000
90,000 P &"#""" P180,000
P7,200 2,400 4,800 P4,800 1,600 3,200
P5,000 3,000 6,000
14,400 194,400
9,600 P1!,#!"" 12,000 196,800
14,000 P1!$#!""
(%) 1
2 0.
Ma$'*act'ri$) cost Less" Direct labor +##lied *actory oer!ead P100 600 !o'rs irect materials use%
Direct (aterials 'sed Direct labor +##lied FO" Moldi$) De#t. P2.70 2,000 !o'rs Decorati$) De#t. 35; P12,000 Estimate% cost to pro%uce
P26,000 30,000 P5,400 4,200
9,600 P0'#0""
Fi% Price (P0'#0"" 7 1,'= ) P&'#1$"
(b)
/P, be). 'rre$t cost" DM DL +FO otal cost 1
Job 115 P81,200
Job 116
26,000 31,200 P138,400
P39,000 45,000 54,000 P138,000
ost o* )oods (a$'*act'red"
ob 115 ob 116 ob 117 Total
Job 117
P53,000 47,000 56,400 P156,400
Job 118
P47,000 16,000 19,200 P82,200
Total
P139,000 134,000 160,800 P515,000
P128,400 138,000 156,400 P,$#!""
13
14
.
!.
2 (c)
/P, +'). 31 ob 118
1
P1#$!"#""" ? P1#0""#""" @ !"=
($)
/P, e$d Direct Labor +##lied FO .80 P100,000 irect materials
P280,000 100,000 80,000 P1""#"""
1
+cco'$ts #ayable, Marc! 31 Pay(e$t o* acco'$ts #ayable *or (aterials +cco'$ts #ayable, Marc! 1 Materials #'rc!ased
P 20,000 70,000 12,000 P 78,000
2
!is ca$ be co(#'ted by -ori$) bac-ard *ro( cost o* )oods sold as *ollo-s"
P !$#$""
(a)
osts o* )oods sold P 600,000 Fi$is!ed )oods i$e$tory, Marc! 31 120,000 Fi$is!ed )oods i$e$tory, Marc! 1 100,000 ost o* )oods (a$'*act'red 620,000 or i$ #rocess, Marc! 31 P12,000CP24,000CP48,000 84,000 or i$ #rocess, Marc! 1 60,000 Ma$'*act'ri$) cost 644,000 +##lied *actory oer!ead 200; P160,000 320,000 Direct labor 160,000 Direct (aterials 'sed 164,000 Materials i$e$tory, Marc! 31 30,000 P'rc!ases 1 78,000 Materials in2entor/# March 1 P 110#""" &.
(%) (1)
Applie% factor/ o2erhea% ($""= 7 P10"#""") @ +ct'al *actory oer!ead :2erapplie% factor/ o2erhea%
P$"#""" 300,000 P $"#"""
1
Direct (aterials Direct labor Prime cost
P26,000 20,000 P,0#"""
2
Direct labor +##lied *actory oer!ead 150; P20,000 Con2ersion costs
P20,000 30,000 P'"#"""
($) ,".
(b)
14
15
,1.
(c)
or i$ #rocess, May 1 " ob 769 ob 772 'rre$t cost" Direct (aterials Direct labor +##lied *actory oer!ead 150; P20,000 otal cost o* )oods #laced i$ #rocess Less" or i$ #rocess, May 31 ob 779" Direct (aterials Direct labor +##lied *actory oer!ead 150; P1,800 Cost of oo%s manufacture% Fi$is!ed )oods i$e$tory, May 31 Job 776 Cost of oo%s sol% at normal ,$.
P9,000 2,900 P26,000 20,000 30,000
P2,800 1,800 2,700
76,000 87,900
7,300 P!"#0"" 4,000 P0#0""
(%)
or i$ #rocess, be)i$$i$) 'rre$t costs" Direct (aterials Direct labor +##lied *actory oer!ead P30 2,000 !o'rs otal Ma$'*act'ri$) cost *or8 in process# en% ,.
(a) P"#""" 7 '""=
,,.
(b)
P 40,000 P98,000 50,000 60,000
+##lied (a$'*act'ri$) oer!ead 50; o* direct labor Direct labor P30,101.80 2 o$ersio$ cost 50; o* (a$'*act'ri$) cost !'s, t!e cost o* (aterials 'sed e&'als Ma$'*act'ri$) costs Decrease i$ -or i$ #rocess i$e$tory Cost of oo%s manufacture% ,'.
P11,900
(a) Direct (aterials 'sed Direct labor +##lied *actory oer!ead " ob E P5,000 200;> ob P4,000 200;> ob K P2,500 200;> otal (a$'*act'ri$) cost c!ar)ed to or i$ Process > P300,000 : P150,000 ? 200;
208,000 248,000 210,000 P !#"""
P30,101.80 60,203.60 90,305.40 90,305.40 180,610.80 590.00 P1!1#$"".!"
P45,000 cr 11,500 cr P10,000 8,000 5,000
23,000 cr P79,500 dr
15
16
,0.
(%)
Direct (aterials 'sed" Materials i$e$tory, '$e 1 P'rc!ases +ailable *or 'se Materials i$e$tory, '$e 30 Direct labor 19,800 !o'rs 5 +##lied *actory oer!ead 19,800 !o'rs P2.50 Manufacturin cost or i$ #rocess, '$e 1 otal or i$ #rocess, '$e 30 Cost of oo%s manufacture% ,.
P 10,000 50,000 60,000 25,000
P 5,000 20,000 15,000
P 35,000 100,000 75,000 210,000 50,000 260,000
40,000 1 P$$"#""" ($)
(a)
+##lied (a$'*act'ri$) oer!ead Diided by #redeter(i$ed oer!ead rate based o$ direct labor cost irect labor cost ,&.
P115,200 99,000 49,500 $0#"" (1) 21,420 285,120 48,420 P$0#"" ($)
(a)
Direct (aterials 'sed" Materials i$e$tory, 11:1 P'rc!ases +ailable *or 'se Materials i$e$tory, 11:30 Direct labor 25,000 !o'rs P4 +##lied *actory oer!ead 25,000 !o'rs P3 Factory cost or i$ #rocess i$e$tory, 11:1 otal *or8 in process in2entor/# 11?"+ Direct (aterials Direct labor 5,000 P4 +##lied *actory oer!ead 5,000 P3 Cost of oo%s manufacture% ,!.
P 97,200 120,000 217,200 102,000
P3,600,000 200; P1#!""#"""
(a)
Ma$'*act'ri$) cost Direct labor +##lied *actory oer!ead irect material use%
P 8,000,000 1,800,000 3,600,000 P $#0""#"""
16
17
'".
(a)
Ma$'*act'ri$) cost or i$ #rocess i$e$tory, 1:1 ost o* )oods (a$'*act'red *or8 in process in2entor/# 1$?1 '1.
(b), credit to Materials acco'$t.
'$.
(b)
P8,000,000 320,000 7,920,000 P ,""#"""
Direct labor !o'rs P360,000:P15 Factory oer!ead !ead #er !o'r Applie% manufacturin o2erhea% '.
(a)# debit to Fi$is!ed oods acco'$t
',.
(a)
or i$ #rocess, a$'ary 1 Ma$'*act'ri$) cost" Direct (aterials 'sed Direct labor +##lied *actory oer!ead otal ost o* )oods (a$'*act'red debit to *i$is!ed )oods *or8 in process# ecember 1 ''.
24,000 !rs. P20 P,!"#"""
P P380,000 360,000 480,000
P 940,000 10,000 950,000 50,000 P 900,000
(b)
+ct'al (a$'*act'ri$) oer!ead +##lied (a$'*act'ri$) oer!ead n%er-applie% o2erhea% '.
1,220,000 1,240,000 940,000 P ""#"""
(b)
ost o* )oods (a$'*act'red Fi$is!ed )oods, a$'ary 1 oods aailable *or sale Fi$is!ed )oods, Dece(ber 31 ost o* )oods sold be*ore adJ'st(e$t *or oer:'$der a##lied oer!ead '0.
20,000
P 540,000 480,000 P 0"#"""
(a)
@ales ost o* )oods sold at act'al P900,000 C P60,000 ross #ro*it Ma$'*act'ri$) e#e$ses :peratin income (loss)
P1,090,000 960,000 130,000 140,000 P( 1"#""")
17
18
'!.
(c)
@ales ost o* )oods sold ross #ro*it Ma$'*act'ri$) oer!ead O#erati$) i$co(e
P1,090,000 943,200 146,800 140,000 P 6,800
Prorati$) o* '$dera##lied oer!ead" or i$ #rocess Fi$is!ed )oods ost o* )oods sold otal '&.
0
0".
Amount P 300,000 50,000 900,000 P1,250,000
Ratio 24; 4; 72; 100;
(c)
Materials i$e$tory, a$'ary 1 P'rc!ases debit to (aterials Direct (aterials re&'isitio$ed debit to -or i$ #rocess Materials# Danuar/ 1
P30,000 70,000 40,000 P0"#"""
(%)
Direct labor !o'rs ate #er !o'r irect labor cost 01.
(b)# cre%it to accrue% pa/roll.
0$.
(a)
11,000 P6 P00#"""
Direct labor !o'rs /$direct cost rate Applie% factor/ o2erhea% cost 0.
Pro-ration P14,400 2,400 43,200 P60,000
11,000 P4 P,,#"""
(%)
or i$ #rocess, a$'ary 1 Ma$'*actory cost" Direct (aterials 'sed Direct labor +##lied *actory oer!ead otal ost o* )oods sold credit to *i$is!ed )oods *or8 in process# Danuar/ 1
P P40,000 66,000 44,000
2,000
150,000 152,000 80,000 P $#"""
18
19
0,.
(c)
Fi$is!ed )oods, a$'ary 1 ost o* )oods (a$'*act'red credit to -or i$ #rocess ost )oods sold inishe% oo%s# Danuar/ 1 0'.
(a)
00#
(%)# cre%it to finishe% oo%s account.
0.
(%) +##lied *actory oer!ead +ct'al *actory oer!ead n%er-applie% o2erhea%
0!.
P 20,000 80,000 60,000 P ,"#"""
P 44,000 48,000 P
,#"""
(c)
19
20
PR:FBEM Problem 1-1
a.
Materials +cco'$ts #ayable
13,500
b. or i$ #rocessdirect (aterial Materials
17,500
c.
13,500
17,500
Factory oer!ead co$trol/$direct (aterials Materials
d. Payroll
1,800 1,800 27,000
+ccr'ed #ayroll
27,000
Labor cost distrib'tio$" or i$ #rocessdirect labor Factory oer!ead co$troli$direct labor @elli$) e#e$se co$trolsalaries +d(i$istratie e#e$se co$trolsalaries Payroll e.
*.
17,000 2,000 5,000 3,000 27,000
Factory oer!ead co$trolario's as!
2,508
Factory oer!ead co$trolario's +cco'$ts #ayable
8,500
2,508
8,500
). or i$ #rocessFactory oer!ead Factory oer!ead co$trol
14,808
!. Fi$is!ed )oods or i$ #rocess
60,100
i.
+cco'$ts receiable @ales
75,000
ost o* )oods sold Fi$is!ed )oods Finished goods, Jan. 1 ost o! "rodu#tion Finished goods, Jan $1 ost o! good sold
60,000
14,808
60,100
75,000
60,000 P15,000 60,100 %15,100& P60,000
20
21
Problem 1-$
a.
Materials +cco'$ts #ayable
100,000 100,000
b. or i$ #rocessdirect (aterial Factory oer!ead co$troli$direct (aterial Materials c.
49,000 9,000 58,000
Payroll
88,000 it!!oldi$) ta #ayable 10; @@@ Pre(i'( Payable 5; Pa)ibi) #re(i'( Payable Medicare #re(i'( #ayable +ccr'ed #ayroll $et
8,800 4,400 880 1,320 72,600
or i$ #rocess direct (aterial Factory oer!ead co$trol @elli$) e#e$ses e$eral ad(i$istratie e#e$ses Payroll
60,000 12,000 6,000 10,000 88,000
+ccr'ed #ayroll as!
7
2,600 72,600
d. Factory oer!ead co$trol P4,800 C P960 @elli$) e#e$ses e$eral ad(i$istratie e#e$ses @@@ #re(i'( #ayable Medicare #re(i'( #ayable H #re(i'( #ayable Pa)ibi) #re(i'( #ayable 'ire#t labor P60,000 5; 1.5; 1.5; 1;
e.
*.
(ndire#t labor P12,000
P 3,000 P 600 900 300 600 P 4,800 P960
5,160 480 800 4,400 1,320 440 880 )ales P6,000
P 300P 180 60 120 P 480P
*!!i#e )alar+ P10,000
500 90 30 60 800
P 4,400 150 50 100 P 7,040
Factory oer!ead co$trol as! or i$ #rocess +##lied *actory oer!ead
Total P88,000
1,320 440 880
15,000 15,000 30,000 30,000
21
22
Problem 1-2, continued.
). Fi$is!ed )oods or i$ #rocess
120,000 120,000
!. +cco'$ts receiable @ales
52,000 52,000
ost o* )oods sold Fi$is!ed )oods
40,000 40,000
Problem 1-
a.
Materials +cco'$ts #ayable
b. or i$ #rocess Factory oer!ead co$trol Materials c.
64,000 64,000 37,000
Payroll
5,600 42,600 100,000
it!!oldi$) ta #ayable 14; @@@ Pre(i'( Payable 5; Medicare #re(i'( #ayable . 5; Pa)ibi) #re(i'( #ayable . 5; +ccr'ed #ayroll +ccr'ed #ayroll as! d. or i$ #rocess P100,000 55; Factory oer!ead co$trol P100,000 18; @elli$) e#e$ses P100,000 17; e$eral ad(i$istratie e#e$ses P100,000 10; Payroll e.
Factory oer!ead co$trol @elli$) e#e$ses e$eral ad(i$istratie e#e$ses @@@ #re(i'( #ayable Medicare #re(i'( #ayable H #re(i'( #ayable Pa)ibi) #re(i'( #ayable
14,000 5,000 500 500 80,000 80,000 80,000 55,000 18,000 17,000 10,000 100,000 5,100 1,190 700 5,000 1,000 500 500
22
23
Problem 1-3, continued:
'ire#t labor P55,000 5; 1; ; ;
*.
(ndire#t labor P18,000
P 2,750P 900P 550 275 275 P 3,850 P1,260
)ales P17,000
850P 500P 180 90 90 P 1,190P
Administratie P10,000
5,000 170 85 85 700 P7,000
or i$ #rocess Factory oer!ead co$trol
100 50 50
1,000 500 500
44,000 44,000
). Factory oer!ead co$trol +cc'('lated de#reciatio$ Pre#aid i$s'ra$ce +cco'$ts #ayable
21,700 18,000 1,200 2,500
!. Fi$is!ed )oods or i$ #rocess
103,000
i.
+cco'$ts receiable @ales
168,750
ost o* )oods sold P168,750 : 135; Fi$is!ed )oods
125,000
as!
145,000
J.
Total P100,000
103,000
168,750
125,000
+cco'$ts receiable
145,000 Problem 1-,
1. a.
b.
c.
d.
Materials +cco'$ts #ayable or i$ #rocess Materials
200,000 200,000 180,000 180,000
Factory Payroll it!!oldi$) ta #ayable @@@ co$trib'tio$ #ayable P!il, !ealt! co$trib'tio$ #ayable Pa)ibi) co$trib'tio$ #ayable +ccr'ed #ayable
120,000
Factory oer!ead co$trol @@@ co$trib'tio$ #ayable P!il. Nealt! co$trib'tio$ #ayable
8,800
6,000 3,200 1,300 2,000 107,500
5,500 1,300
23
24
Pa)ibi) co$trib'tio$ #ayable
2,000
Problem 1-4, continued:
e.
*.
).
!.
i.
J.
$.
1
2
3
or i$ #rocess Factory oer!ead co$trol Factory #ayroll
80,000 40,000 120,000
Factory oer!ead co$trol +cco'$ts #ayable or i$ #rocess +##lied *actory oer!ead
67,500 67,500 96,000 96,000
Fi$is!ed )oods or i$ #rocess
320,000
as!:acco'$ts receiable @ales
480,000
ost o* )oods sold Fi$is!ed )oods
320,000
320,000
480,000
320,000
+##lied *actory oer!ead ost o* )oods sold Factory oer!ead co$trol
96,000 20,300 116,300
or i$ #rocess, October 1 Factory cost" Direct (aterials Direct labor +##lied *actory oer!ead otal ost o* )oods (a$'*act'red or i$ #rocess, October 31
or i$ #rocess Materials or i$ #rocess Factory #ayroll or i$ #rocess +##lied *actory oer!ead 1,920 !o'rs P50
P 15,000 P180,000 80,000 96,000
356,000 371,000 320,000 P 51,000
Problem 1-' 135,000
135,000 120,000 120,000 96,000 96,000
24
25
Problem 1-5, continued "
4
Fi$is!ed )oods or i$ #rocess
or i$ #rocess, be)i$$i$) Factory cost" Direct (aterials Direct labor +##lied *actory oer!ead otal
288,000 288(000 Job 66 P 40,000
Job 67 P 15,000
Total P 55,000
35,000 45,000 36,000 P156,000
45,000 40,000 32,000 P132,000
80,000 85,000 68,000 P288,000
Problem 1-0
1
a.
b.
Materials +cco'$ts #ayable
229,040
Payroll
220,000
229,040
Payroll #ayable c.
d.
e.
*.
220,000
or i$ #rocess Factory oer!ead co$trol @elli$) a$d ad(i$istratie e#e$ses Payroll 'ire#t labor ob 101 5,000 !o'rs P8 ob 102 8,000 !o'rs P10 ob 103 6,000 !o'rs P6 otal
156,000
or i$ #rocess Factory oer!ead co$trol Materials
216,350
P 40,000 80,000 36,000 P156,000
231,390
Fi$is!ed )oods or i$ #rocess
+cco'$ts receiable
220,000
15,040
or i$ #rocess +##lied *actory oer!ead
or i$ #rocess, a$.1 Ma$'*act'ri$) cost" Direct (aterials Direct labor +##lied oer!ead otal
24,000 40,000
85,500 85,500 380,700 380,700
Job 101 P 11,000
Job 10 P 4,000
Total P 15,000
103,200 40,000 22,500 P176,700
84,000 80,000 36,000 P204,000
187,200 120,000 58,500 P380,700
520,000
25
26
@ales
520,000
Problem 1-6, continued:
).
!.
i.
J.
2.
as! @ales disco'$t +cco'$ts receiable
494,000 26,000 520,000
Mareti$) a$d ad(i$istratie e#e$ses Factory oer!ead co$trol as!
30,000 49.720 79,720
+cco'$ts #ayable as!
170,000 170,000
+##lied *actory oer!ead $dera##lied oer!ead Factory oer!ead co$trol
85,500 3,260
ost o* )oods sold $dera##lied oer!ead
3,260
3,260
3,260
Dosel/n Compan/ tatement of Cost of 4oo%s ol% Month En%e% Danuar/ 1# $"1"
Direct (aterials 'sed Direct labor +##lied *actory oer!ead Factory cost or i$ #rocess, a$'ary 1 otal cost o* )oods #laced i$ #rocess or i$ #rocess, a$'ary 31 ob. 103 ost o* )oods (a$'*act'red Fi$is!ed )oods, a$'ary 1 oods aailable *or sale Fi$is!ed )oods, a$'ary 31 ost o* )oods at $or(al $dera##lied oer!ead ost o* )oods sold at act'al
P216,350 156,000 85,500 457,850 15,000 472,850 92.150 380,700 65,000 445,700 65,000 380,700 3,260 P383,960
Problem 1-
1
a.
b.
Materials +cco'$ts #ayable or i$ #rocess Factory oer!ead co$trol Materials
22,000 22,000 18,600 2,400 21,000
26
27
Problem 1-7, continued "
c.
d.
e.
Materials Factory oer!ead co$trol or i$ #rocess ob 622
600
+cco'$ts #ayable Materials
800
200 400
800
Payroll
38,000 Payroll #ayable
*.
).
!.
i.
J.
.
or i$ #rocess Factory oer!ead co$trol @elli$) e#e$ses +d(i$istratie e#e$ses Payroll
38,000 20,900 7,600 5,700 3,800 38,000
Factory oer!ead co$trol +cc'('lated de#reciatio$ Pre#aid i$s'ra$ce +cco'$ts #ayable or i$ #rocess +##lied *actory oer!ead P20,900 80; Fi$is!ed )oods P23,436 C P29.948 or i$ #rocess Job 61 or i$ #rocess, Marc! 1 P6,580 'rre$t costs" Direct (aterials 5,300 Direct labor 6,420 +##lied FO 5,136 otal P23,436
9,404.50 2,000 250 7,154.50 16,720 16,720
53,384 53,384 Job 6 P8,260
Job 6$ P4,230
7,000 8,160 6,528 P29,948
5,900 6,320 5,056 P21,506
+cco'$ts receiable @ales P15,000 C P23,436 140;
53,810.40
ost o* )oods sold Fi$is!ed )oods
38,436
as!
40,000
53,810.40
38,436
+cco'$ts receiable $.
che%ule of in2entor/# March 1+ Materials i$e$tory bala$ce o* Materials acco'$t
40,000
P14,800
27
28
Fi$is!ed )oods ob 622 or i$ #rocess ob 623
29,948 21,506 Problem 1-!
(1) 9anc/ Corporation Cost of oo%s sol% statement Month En%e% eptember "# $"1"
Direct (aterials 'sed Direct labor +##lied *actory oer!ead Ma$'*act'ri$) cost or i$ #rocess i$e$tory, @e#t. 1 otal or i$ #rocess i$e$tory, @e#t.30 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, @e#t.1 oods aailable *or sale Fi$is!ed )oods i$e$tory, @e#t. 30 ost o* )oods sold
P 29,800 18,600 27,450 75,850 4,070 79,920 4,440 75,480 9,800 85,280 9,250 P 76,030
($) 9anc/ Corporation ncome tatement Month En%e% eptember "# $"1"
Iet sales P144,900 % P1,300 ost o* )oods sold ross #ro*it O#erati$) e#e$ses" Mareti$) e#e$ses De#reciatio$ P30 C P16 C P20 C 24 e$eral ad(i$istratie e#e$ses Iet i$co(e
P143,600 76,030 67,570 P 25,050 90 19,700
44,840 P 22,730
() Computation of o2er(un%er)applie% factor/ o2erhea%+
+##lied *actory oer!ead +ct'al *actory oer!ead" Oer!ead #aid /$direct (aterials De#reciatio$ b'ildi$) De#reciatio$ (ac!i$ery a$d e&'i# /$direct labor $dera##lied *actory oer!ead
P27,450 P20,100 3,950 150 800 4,400
29,400 P 1,950
28
29
Problem 1-& (1)
Pena Manufacturin Compan/ tatement of Cost of 4oo%s Manufacture% or the ear En%e% ecember 1# $"1"
a- (aterials i$e$tory be)i$$i$) P'rc!ases P52,000 A 65; 2< +ailable *or 'se a- (aterials i$e$tory, e$di$) Direct (aterials 'sed Direct labor Factory oer!ead Ma$'*act'ri$) cost or i$ #rocess i$e$tory, e$di$) ost o* )oods (a$'*act'red
P 60,000 > 160,000 220,000 20,000 200,000 120,000 80,000 400,000 25,000 P375,000
>
Let E? a- (aterials i$e$tory, be)i$$i$) 1:3E? a- (aterials i$e$tory, e$di$) !ere*ore" E C P160,000 % 1:3E ? P200,000 2:3E ? P40,000 E ? P60,000 ($)
Pena Manufacturin Compan/ ncome tatement or the ear En%e% ecember 1# $"1" @ales P300,000 A 60; ost o* )oods sold" ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, be)i$$i$) oods aailable *or sale Fi$is!ed )oods i$e$tory, e$di$) ross #ro*it O#erati$) e#e$ses s&'ee=e @elli$) e#e$ses e$eral e#e$ses Iet i$co(e be*ore ta Proisio$ o* i$co(e ta Iet i$co(e a*ter ta
P500,000 P375,000 25,000 400,000 100,000
96,000 24,000
300,000 200,000
120,000 80,000 28,000 P 52,000
upportin computations+ Finished goods inventories: OM C F, be) % F, e$d ? O@ Let E ? Fi$is!ed )oods i$e$tory be)i$$i$) 4E ? Fi$is!ed )oods i$e$tory e$di$) !ere*ore" P375,000 C E % 4E ? P300,000 3E ? P375,000
29
30
E ? P25,000 *i$is!ed )oods, be)i$$i$) 4E ? P100,000 *i$is!ed )oods e$di$)
Problem 1-9, continued: !er"ting e#!enses: @H C H ? OH Let E ? H 4E ? @H !ere*ore" 4E C E ? 120,000 5E ? 120,000 E ? 24,000 H 4E ? 96,000 @H Problem 1-1" $ourn"l %ntries
a Materials +cco'$ts #ayable
18,400
b Factory oer!ead co$trol +cco'$ts #ayable
53,060
18,400
53,060
c Payroll
172,000 +ccr'ed #ayroll
172,000
or i$ #rocess direct labor Factory oer!ead co$trol @elli$) e#e$ses +d(i$istratie e#e$ses Payroll
121,000 25,000 16,000 10,000
+ccr'ed #ayroll P4,500 C P172,000 as!
176,500
172,000
176,500
d or i$ #rocess direct (aterials Factory oer!ead co$trol Materials e or i$ #rocess Factory oer!ead co$trol
115,000 16,600 131,600 94,660 94,660
* Fi$is!ed )oods or i$ #rocess
376,000
) +cco'$ts receiable @ales P19,000 C P376,000 % P24,000 130;
482,300
ost o* )oods sold Fi$is!ed )oods P19,000 C P376,000 % P24,000? P371,000
376,000
482,300
371,000 371,000
30
31
Problem 1-1&, continued:
! as! P425,800 98; @ales disco'$t P425,840 2; +cco'$ts receiable
417,323 8,517 425,840
i @elli$) e#e$ses P60,000 60; e$eral ad(i$istratie e#e$se P60,000 40; +cco'$ts #ayable J +cco'$ts #ayable as!
36,000 24,000 60,000 208,000 208,000
Problem 1-11 (1)
Cost of oo%s sol% statement+
Materials i$e$tory, '$e 1 P'rc!ases Materials aailable *or sale Less" Materials i$e$tory, '$e 30 /$direct (aterials 'sed Direct (aterials 'sed Direct labor P49,000 A 7 6< Factory oer!ead" e$eral *actory oer!ead De#reciatio$ /$direct (aterials /$s'ra$ce /$direct labor P49,000 A 7 Ma$'*act'ri$) cost or i$ #rocess i$e$tory, '$e 1 otal or i$ #rocess i$e$tory, '$e 30 ost o* )oods (a$'*act'red Fi$is!ed )ood i$e$tory, '$e 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, '$e 30 ost o* )oods sold ($)
P15,000 33,000 P48,000 P19,000 1,000
P13,000 17,000 1,000 2,000 7,000
20,000 28,000 42,000
40,000 110,000 40,000 150,000 30,000 120,000 70,000 190,000 50,000 P140,000
ummar/ Iournal entries+
a
b
Materials +cco'$ts #ayable
33,000
or i$ #rocessDirect (aterials Factory oer!ead co$trol Materials
28,000 1,000
33,000
29,000
31
32
Problem 1-11, continued:
c
Payroll
49,000 +ccr'ed #ayroll
d
e
*
49,000
or i$ #rocessdirect labor Factory oer!ead co$trol Payroll
42,000 7,000
Fi$is!ed )oods or i$ #rocess
120,000
+cco'$ts receiable @ales P140,000 150;
210,000
ost o* )oods sold Fi$is!ed )oods
140,000
49,000
120,000
210,000
140,000 Problem 1-1$
'om!ut"tion o( 'osts: 1. Direct (aterials 'sed Direct labor +##lied *actory oer!ead P1,300,000 160; Ma$'*act'ri$) cost
P 710,000 1,300,000 2,080,000 P4,090,000
2. @'##lies /$direct labor De#reciatio$ o* b'ildi$) a$d *actory e&'i#. Miscella$eo's otal act'al *actory oer!ead
P 100,000 900,000 400,000 550,000 P1,950,000
3. a- (aterials i$e$tory, a$. 1, 2010 P'rc!ases +ailable *or 'se a- (aterials 'sed a- (aterials i$e$tory Less i$direct (aterials 'sed s'##lies a- (aterials i$e$tory, Dec. 31,2010
P 100,000 800,000 900,000 710,000 190,000 100,000 P 90,000
4. Ma$'*act'ri$) cost 1 or i$ #rocess, a$. 1, 2010 ost o* )oods (a$'*act'red or i$ #rocess, Dec. 31,2010
P4,090,000 60,000 4,120,000 P 30,000
5. +##lied *actory oer!ead 1 +##lied *actory oer!ead 2 Oera##lied *actory oer!ead
P2,080,000 1,950,000 P 130,000
6. ost o* )oods sold at $or(al
P4,020,000
32
33
Oera##lied *actory oer!ead 5 ost o* )oods sold at act'al
130,000 P3,890,000 Problem 1-1
)1* $+ 'om!"n "l"nce /heet 0ecember 31, 2&&9 Assets as! @c!ed'le 1 +cco'$ts receiable Fi$is!ed )oods i$e$tory P12,000 % 1:3 P12,000< or i$ #rocess i$e$tory P4,000 % 50; P4,000< Materials i$e$tory P8,000 % 50; P8,000< Pre#aid e#e$ses Pro#erty, #la$t, a$d e&'i#(e$t P60,000 % P8,000 otal Biabilities an% toc8hol%ersJ E5uit/ 'rre$t liabilities @toc!oldersB e&'ity" a#ital stoc etai$ed ear$i$)s otal
P 38,000 20,000 8,000 2,000 4,000 1,000 52,000 P125,000
P 35,000 P60,000 30,000
90,000 P125,000
/u!!orting 'om!ut"tions: che%ule 1
as! bala$ce, a$ 1, 2009 ollectio$ o* acco'$ts receiable a otal Pay(e$ts" Payroll b Factory oer!ead c Mareti$) e#e$ses d +d(i$istratie e#e$ses e Pay(e$t o* (aterials #'rc!ases Per O@ as! bala$ce, Dec. 31, 2009
P 10,000 120,000 130,000 P18,000 16,000 12,000 16,000 30,000
92,000 P 38,000
a +cco'$ts receiable, a$. 1, 2009 @ales o$ acco'$t +cco'$ts receiable, Dec. 31, 2009 re&'ired bala$ce ollectio$s
P 20,000 120,000 20,000 P120,000
b 'rre$t liabilities, a$. 1, 2009 Direct labor cost accr'ed #ayroll 'rre$t liabilities, Dec. 31, 2009 re&'ired bala$ce Pay(e$t o* c'rre$t liabilities
P 35,000 18,000 35,000 P 18,000
33
34
Problem 1-13, continued:
c +ct'al *actory oer!ead P18,000 C P4000 Less de#reciatio$ P8,000 Q Pay(e$t
P 22,000 6,000 P 16,000
d Mareti$) e#e$ses #aid P120,000 10;
P 12,000
e +d(i$istratie e#e$ses P120,000 15; Less de#reciatio$ P8,000 R Pay(e$t
P 18,000 2,000 P 16,000
)2* $+ 'om!"n ncome /t"tement e"r %nded 0ecember 31, 2&&9
@ales ost o* )oods sold at act'al @c!. 2 ross #ro*it O#erati$) e#e$ses" Mareti$) e#e$ses +d(i$istratie e#e$ses Iet i$co(e
P120,000 80,000 40,000 P12,000 18,000
30,000 P 10,000
che%ule $- tatement of Cost of 4oo%s ol%
Direct (aterials 'sed" /$e$tory, a$. 1 P'rc!ases s&'ee=e /$e$tory, Dec. 31 Direct labor +##lied *actory oer!ead Factory cost or i$ #rocess i$e$tory, a$. 1 otal or i$ #rocess i$e$tory, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 ost o* )oods sold at $or(al $dera##lied *actory oer!ead ost o* )oods sold at act'al
P 8,000 30,000 4,000
P 34,000 18,000 18,000 70,000 4,000 74,000 2,000 72,000 12,000 84,000 8,000 76,000 4,000 P 80,000
34
35
Problem 1-1, 1.
'ost o( $obs+
Direct (aterials 'sed Direct labor +##lied *actory oer!ead otal *actory cost
Job $/ P 32,500 35,000 35,000 P102,500
Job 567 P 59,000 30,000 30,000 P119,000
$+ (a) P'rc!ases o* (aterials Materials re&'isitio$ed Materials ret'r$ed to storeroo( Materials acco'$t bala$ce
P100,000 94,000 2,500 P 8,500
b Materials re&'isitio$ed Direct labor +##lied *actory oer!ead Materials ret'r$ed *or ob 2,500 o(#leted Job 234 or i$ #rocess, e$d
P 94,000 65,000 65,000 2,500 102,500 P119,000
c ost o* )oods sold ob 234
P102,500 Problem 1-1'
1.
$ourn"l entries
b.
c.
d.
Materials +cco'$ts #ayable or i$ #rocess Factory oer!ead co$trol Materials
720,000 720,000 560,000 40,000 600,000
Factory #ayroll it!!oldi$) ta #ayable @@@ co$trib'tio$s #ayable P!il. Nealt! co$trib'tio$s #ayable Pa)ibi) co$trib'tio$s #ayable Payroll #ayable
680,000
Payroll #ayable as!
634,100
or i$ #rocess Factory oer!ead co$trol Factory #ayroll
34,000 7,500 2,400 2,000 634,100
634,100 620,000 60,000 680,000
35
36
Problem 1-15, continued "
e.
*.
).
!.
i.
Factory oer!ead co$trol @@@ o$trib'tio$s #ayable P!il. Nealt! co$trib'tio$s #ayable Pa)ibi) co$trib'tio$s #ayable
14,600
Factory oer!ead co$trol +cc'('lated de#reciatio$
60,000
$.
60,000
Factory oer!ead co$trol +cco'$ts #ayable or i$ #rocess +##lied *actory oer!ead Fi$is!ed )oods or i$ #rocess
or i$ #rocess, '$e 1 'rre$t costs" Direct (aterials Direct labor +##lied FO otal costs J.
10,200 2,400 2,000
340,000 340,000 620,000 620,000 1,200,000 1,200,000 Job /0 P 20,000
Job /1 P 60,000
100,000 200,000 200,000 P520,000
220,000 200,000 200,000 P680,000
+cco'$ts receiable @ales
900,000
ost o* )oods sold Fi$is!ed )oods
520,000
900,000
520,000
*or8 in Process# Dune "# $"1" (Dob ,$)+
Direct (aterials Direct labor +##lied *actory oer!ead or i$ #rocess, '$e 30
P240,000 220,000 220,000 P680,000
Or"
Gala$ce, '$e 1 c d ! Gala$ce, '$e 30
or in "ro#ess P 80,000 P1,200,000 560,000 620,000 620,000 1,880,000 1,200,000 P680,000
i
36
37
Problem 1-10 $enn" 'om!"n /t"tement o( 'ost o( oods /old e"r %nded 0ecember 31, 2&1&
Direct (aterials 'sed" a- (aterials i$e$tory, a$ 1 Iet #'rc!ases P400,000 % P4,200 +ailable *or 'se a- (aterials i$e$tory, Dec. 31 Direct labor Factory oer!ead" Factory (ai$te$a$ce Factory #o-er a$d !eat /$s'ra$ce De#reciatio$ Factory s'#eri$te$de$ce /$direct labor Factory s'##lies Ma$'*act'ri$) cost or i$ #rocess, a$. 1 ost o* )oods #laced i$ #rocess or i$ #rocess, Dec. 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec.31 ost o* )oods sold
P 395,800 395,800 24,000
P38,400 19,400 4,800 17,500 100,000 20,000 22,400
P371,800 180,000
222,500 774,300 84,000 858,300 30,000 828,300 37,500 865,800 40,000 P825,800
Problem 1-1 $enn ncor!or"ted /t"tement o( 'ost o( oods +"nu("ctured "nd /old +onth %nded +" 31, 2&1&
Direct (aterials 'sed" /$e$tory, +#ril 30, 198 P'rc!ases P510,000 C P15,000 +ailable *or 'se /$e$tory, May 31, 198 Direct labor Factory oer!ead /$direct labor Pro#erty ta /$s'ra$ce 60; De#reciatio$ tilities Factory cost or i$ #rocess i$e$tory, +#ril 30, 198 ost o* )oods #laced i$ #rocess
P28,000 525,000 553,000 23,000
P
90,000 60,000 12,000 50,000 108,000
P 530,000 260,000
320,000 1,110,000 150,000 1,260,000
37
38
or i$ #rocess i$e$tory, May 31, 198 ost o* )oods (a$'*act'red
130,000 P1,130,000
Problem 1 1!
1.
Dournal Entries+
a
b
c
d
e
*
)
Materials +cco'$ts #ayable
136,000
Factory #ayroll Payroll #ayable
180,000
Ma$'*act'ri$) oer!ead co$trol +cco'$ts #ayable
158,500
180,000
158,500
or i$ #rocess Ma$'*act'ri$) oer!ead co$trol Materials
105,500
or i$ #rocess Ma$'*act'ri$) oer!ead co$trol Factory #ayroll
156,000
or i$ #rocess +##lied *actory oer!ead
195,000
15,500 121,000
24,000 180,000
Fi$is!ed )oods or i$ #rocess
or i$ #rocess, May 1 'rre$t costs" Direct (aterials Direct labor +##lied FO otal costs !
136,000
195,000 394,400 394,400
Job 802 P 11,500
Job 811 P 13,900
Job 81 P
14,000 64,000 80,000 P169,500
24,000 32,000 40,000 P109,900
34,000 24,000 45,000 P115,000
as!
412,500 @ales
ost o* )oods sold Fi$is!ed )oods ob 809 ob 810 ob 811 otal i
O#erati$) e#e$ses as!
412,500 308,200 308,200 P169,500 28,800 109,900 P308,200 74,500 74,500
38
39
Problem 1-1, continued: 2.
ono +"nu("cturing 'or!or"tion /t"tement o( 'ost o( oods +"nu("ctured +onth %nded +" 31, 2&1&
Direct (aterials 'sed" Materials i$e$tory, May 1 P'rc!ases +ailable *or 'se Less" Materials i$e$tory, May 31@& P60,500 /$direct (aterials 'sed 15,500 Direct labor +##lied *actory oer!ead Factory cost or i$ #rocess i$e$tory, May 1 otal cost o* )oods #laced i$ #rocess or i$ #rocess i$e$tory, May 31 ob 813 ost o* )oods (a$'*act'red
P 45,500 136,000 181,500 76,000
P105,500 156,000 195,000 456,500 25,400 481,900 87,500 P394,400
3. ono +"nu("cturing 'or!or"tion ncome /t"tement +onth %nded +" 31, 2&1&
,.
@ales ost o* )oods sold" Fi$is!ed )oods i$e$tory, May 1 ost o* )oods (a$'*act'red oods aailable *or sale Fi$is!ed )oods i$e$tory, May 31, ob 812 ross #ro*it O#erati$) e#e$ses Iet #ro*it
P 28,800 394,400 423,200 115,000
308,200 104,300 74,500 P 29,800
che%ule of n2entor/ balances# Ma/ 1# $"1"+
Materials i$e$tory or i$ #rocess i$e$tory ob 813" Direct (aterials Direct labor +##lied *actory oer!ead Fi$is!ed )oods i$e$tory ob 812" Direct (aterials Direct labor +##lied *actory oer!ead '.
P412,500
P 60,500 P33,500 24,000 30,000
87,500
P34,000 36,000 45,000
115,000
P1&#"", t!is is $ot re#orted i$ t!e *i$a$cial state(e$ts.
39
40
Problem 1-1& (1)
Materials Control account balance# April "+ Materials o$trol bala$ce, +#ril 1 a- (aterials #'rc!ased d'ri$) +#ril Direct (aterials 'sed /$direct (aterials 'sed Materials o$trol bala$ce, +#ril 30 or in Process "ccount b"l"nce, !ril 3&: or i$ #rocess, +#ril 1" ob 202 ob 203 ob 204 P't i$to #rocess d'ri$) +#ril" Direct (aterials Direct labor +##lied *actory oer!ead P16:!r otal cost o* )oods #laced i$ #rocess Fi$is!ed )oods" ob 202 ob 204 ob 205 ob 207 or i$ #rocess, +#ril 30S ob 203 ob 206
P 2,750 11,500 9,705 2,790 P 1,755
P4,700 3,280 4,160
P12,140
P 9,705 9,500 7,600
26,805 P38,945
P9,550 6,930 6,280 5,870
28,630
P6,535 3,780
P10,315
/u!!orting 'om!ut"tions:
or i$ #rocess, +#ril 1 'rre$t costs" Direct (aterials Direct labor +##lied FO P16:DLN otal cost
($)
Job 0 P4,700
Job 0$ P3,280
Job 0/ P4,160
Job 05 P
Job 06 P
Job 07 P
1,250 2,000 1,600 P9,550
555 1,500 1,200 P6,535
970 1,000 800 P6,930
2,500 2,100 1,680 P6,280
1,980 1,000 800 P3,780
2,450 1,900 1,520 P5,870
or i$ #rocess ob 202 Materials co$trol Payroll +##lied *actory oer!ead
4,850
Fi$is!ed )oods ob 202 or i$ #rocess
9,550
+cco'$ts receiable @ales P9,550 150; ost o* )oods sold Fi$is!ed )oods
1,250 2,000 1,600
9,550 14,325 14,325 9,550 9,550
40
41
()
(,)
(')
Direct (aterials 'sed Direct labor +##lied *actory oer!ead Factory cost or i$ #rocess, +#ril 1 or i$ #rocess, +#ril 30 ost o* )oods (a$'*act'red
P 9,705 9,500 7,600 26,805 12,140 10,315 P28,630
+##lied *actory oer!ead +ct'al *actory oer!ead" De#reciatio$ /$direct labor Factory re$t a$d 'tilities /$direct (aterials 'sed $dera##lied oer!ead
P 7,600 P1,375 2,500 2,700 2,790
@ales P24,280 > 150; ost o* )oods sold " Fi$is!ed )oods, +#ril 1 ob 201 ost o* )oods (a$'*act'red Fi$is!ed )oods, +#ril 30 obs 204 T 207 ost o* )oods sold at $or(al $dera##lied oer!ead ross #ro*it > ob 201 ob 202 ob 205 otal
9,365 P1,765
P36,420 P 8,450 28,630 12,800 24,280 1,765
26,045 P10,375
P 8,450 9,550 6,280 P24,280
Problem 1-$" (1) or i$ #rocess, Marc! 1 ost added t!is (o$t!" Direct (aterials Direct labor +##lied *actory oer!ead otal cost
($)
Job 0/ P50,460
Job 05 P118,060
Job 06 P124,101
Job 07 P
9,480 26,844 7,717.65 P94,501.65
11,320 22,750 7,475 P159,605
10,490 28,920 8,314.50 P171,825.50
22,440 20,370 6,693 P 49,503
+##lied *actory oer!ead +ct'al *actory oer!ead $dera##lied *actory oer!ead t!is (o$t! Oera##lied *actory oer!ead, Marc! 1 Oera##lied *actory oer!ead re(ai$i$) i$ FO co$trol
P 30,200.15 40,941.87 10,741.72 dr 12,300.00 cr P 1,558.28 cr
41
42
Problem 1-2&, 'ontinued: ()
*or8 in process# March 1+
ob 205 ob 206 ob 207 otal (,)
P159,605.00 171,825.50 49,503.00 P380,933.50
Cost of oo%s manufacture%+
or i$ #rocess, Marc! 1 ost added t!is (o$t!" Direct (aterial Direct labor +##lied *actory oer!ead otal costs or i$ #rocess, Marc! 31 3 ost o* )oods (a$'*act'red ob 204
P292,621.00 P53,730.00 98,884.00 30,200.15
182,814.15 475,435.15 380,933.50 P 94,501.65
Problem 1-$1 8"nn 'om!"n /t"tement o( 'ost o( oods +"nu("ctured "nd /old e"r %nded 0ecember 31, 2&1&
Direct (aterials 'sed" Materials i$e$tory, a$. 1 P'rc!ases 1 +ailable *or 'se Materials i$e$tory, Dec. 31 Materials 'sed /$direct (aterials s&'ee=e Direct labor 5 +##lied *actory oer!ead 6 Factory cost or i$ #rocess, a$. 1 otal cost o* )oods #laced i$ #rocess or i$ #rocess, Dec. 31 4 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, a$. 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31 3 ost o* )oods sold at $or(al Oera##lied *actory oer!ead 7 ost o* )oods sold at act'al 2
P 15,000 100,000 115,000 23,000 92,000 12,000
P 80,000 100,000 150,000 330,000 20,000 350,000 30,000 320,000 80,000 400,000 37,000 363,000 3,000 P360,000
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43
Problem 1-21, continued:
(1)
+cco'$ts #ayable, Dec. 31 Pay(e$t o* acco'$ts #ayable +cco'$ts #ayable, a$. 1 P'rc!ases o* (aterials
P 5,000 102,000 7,000 P100,000
($)
+cco'$ts receiable, Dec. 31 ollectio$s o* acco'$ts receiable +cco'$ts receiable, a$. 1 @ales ost ratio ost o* )oods sold at act'al
P 65,000 480,000 45,000 P500,000 72; P360,000
()
ost o* )oods sold at act'al Oera##lied *actory oer!ead ost o* )oods at $or(al oods aailable *or sale Fi$is!ed )oods i$e$tory, Dec. 31
P360,000 3,000 363,000 400,000 P 37,000
(,)
Materials Direct labor +##lied *actory oer!ead 150; P8,000 or i$ #rocess i$e$tory, Dec. 31
P 10,000 8,000 12,000 P 30,000
(')
ost o* )oods (a$'*act'red or i$ #rocess i$e$tory, Dec. 31 or i$ #rocess i$e$tory, a$. 1 Factory cost Direct (aterials 'sed o$ersio$ cost Direct labor cost +##lied *actory oer!ead 150;
P320,000 30,000 20,000 330,000 80,000 250,000 100,000 P150,000
(0)
+##lied *actory oer!ead +ct'al *actory oer!ead" /$direct (aterials 'sed /$direct labor " +ccr'ed #ayroll, 12:31 Pay(e$t +ccr'ed #ayroll, 1:1 Payroll Direct labor /$direct labor Misc. *actory oer!ead Oera##lied *actory oer!ead
P150,000 P 12,000 P 14,000 172,000 11,000 175,000 100,000 P 75,000 P 60,000
147,000 P 3,000
43
44
Problem 1-$$ 1.
Direct (aterials P396,000 % P12,000 Direct labor +##lied *actory oer!ead P50 2,800 DL !o'rs otal cost o* ProJect Io. 27
P 384,000 248,000 140,000 P 772,000
$.
@ales ost o* )oods sold ross #ro*it @elli$) a$d ad(i$istratie e#e$ses Iet #ro*it
P1,400,000 772,000 628,000 140,000 P 488,000 Proble( 123
1.
+cco'$ts #ayable, May 31 Pay(e$t o* acco'$ts #ayable +cco'$ts #ayable, May 1 P'rc!ases o* (aterials
P 12,000 78,000 10,000 P 80,000
$.
ost o* )oods sold Fi$is!ed )oods i$e$tory, May 31 Fi$is!ed )oods i$e$tory, May ost o* )oods co(#leted d'ri$) May
P165,000 7,000 25,000 P147,000
.
Mac!i$e !o'rs Predeter(i$ed oer!ead rate P750,000 : 15,000 !o'rs +##lied *actory oer!ead
1,000 !o'rs P50 P 50,000
,.
Direct (aterials Direct labor +##lied *actory oer!ead P50 30 (ac!i$e !o'rs or i$ #rocess, May 31
P
2,000 1,000 1,500 P 4,500
'.
ost o* )oods (a$'*act'red or i$ #rocess, May 31 or i$ #rocess, May 1 Factory cost Direct labor 940 DL !o'rs P25 +##lied *actory oer!ead Direct (aterials 'sed
P147,000 4,500 2,000 149,500 23,500 50,000 P 76,000
0.
Direct (aterials 'sed Direct (aterials co$trol, May 31 Materials #'rc!ased Direct (aterials co$trol, May 1
P 66,000 20,000 80,000 P 6,000
.
+##lied *actory oer!ead +ct'al *actory oer!ead
P 50,000 55,000
44
45
$dera##lied *actory oer!ead
P 5,000
Problem 1-$,
/chedule o( 'ost o( oods /old
Materials i$e$tory, 'ly 1 P'rc!ases +ailable *or 'se Less" Materials i$e$tory, 'ly 31 /$direct (aterials 'sed Direct (aterials 'sed Direct labor Factory oer!ead Factory cost or i$ #rocess i$e$tory, 'ly 1 otal or i$ #rocess i$e$tory, 'ly 31 ost o* )oods (a$'*act'red Fi$is!ed )oods i$e$tory, 'ly 1 oods aailable *or sale Fi$is!ed )oods i$e$tory, 'ly 31 ost o* )oods sold
P 20,000 65,000 85,000 P15,000 20,000
35,000 50,000 200,000 100,000 350,000 7,000 357,000 11,000 346,000 34,000 380,000 30,000 P350,000
'om!ut"tions:
1. 2. 3. 4. 5.
P50,000 P200,000 P100,000 P346,000 P350,000
6. +cco'$ts #ayable, 'ly 1 Materials #'rc!ases +cco'$ts #ayable, 'ly 31 Pay(e$ts o* acco'$ts #ayable
P 18,000 65,000 6,000 P 77,000
7.
P 54,000 500,000 22,000 P532,000
+cco'$ts receiable, 'ly 1 @ales o$ acco'$t +cco'$ts receiable, 'ly 31 ollectio$s o* acco'$ts receiable
8. +ccr'ed #ayroll, 'ly 1 Payroll *or 'ly +ccr'ed #ayroll, 'ly 31 Pay(e$t o* #ayroll
P 13,000 255,000 9,000 P259,000
45
