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    Manufacturing Exercises

    Uploaded by

    Hershey Julienne Alvarez
    The document provides journal entries for various manufacturing transactions including: 1) Purchasing raw materials and transferring them to production 2) Transferring direct and indirect materials and labor to work in process 3) Accruing payroll expenses for direct and indirect labor 4) Incurring and paying other overhead expenses 5) Transferring completed goods to finished goods inventory 6) Selling finished goods and recording the sale transaction

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Manufacturing Exercises

    Uploaded by

    Hershey Julienne Alvarez
    69 views3 pages
    The document provides journal entries for various manufacturing transactions including: 1) Purchasing raw materials and transferring them to production 2) Transferring direct and indirect materials and labor to work in process 3) Accruing payroll expenses for direct and indirect labor 4) Incurring and paying other overhead expenses 5) Transferring completed goods to finished goods inventory 6) Selling finished goods and recording the sale transaction

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    The document provides journal entries for various manufacturing transactions including: 1) Purchasing raw materials and transferring them to production 2) Transferring direct and indirect materials and labor to work in process 3) Accruing payroll expenses for direct and indirect labor 4) Incurring and paying other overhead expenses 5) Transferring completed goods to finished goods inventory 6) Selling finished goods and recording the sale transaction

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views3 pages

    Manufacturing Exercises

    Uploaded by

    Hershey Julienne Alvarez
    The document provides journal entries for various manufacturing transactions including: 1) Purchasing raw materials and transferring them to production 2) Transferring direct and indirect materials and labor to work in process 3) Accruing payroll expenses for direct and indirect labor 4) Incurring and paying other overhead expenses 5) Transferring completed goods to finished goods inventory 6) Selling finished goods and recording the sale transaction

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    1.

    Prepare the necessary journal entries for the following transactions, assuming that the Raw
    Material Inventory account includes both direct and indirect material.

    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 70 percent was direct and the remainder was
    indirect.
    d. Incurred and paid other overhead items of P36,000.
    e. Transferred items costing P86,500 to finished goods.
    f. Sold goods costing P71,300 on account for P124,700.

    ANS:

    a. RM Inventory 28,500
    A/P 28,500
    b. WIP Inventory 15,000
    Manufacturing OH 3,000
    RM Inventory 18,000
    c. WIP Inventory 63,000
    Manufacturing OH 27,000
    Salaries/Wages Payable 90,000
    d. Manufacturing OH 36,000
    Cash 36,000
    e. FG Inventory 86,500
    WIP Inventory 86,500
    f. A/R 124,700
    Sales 124,700
    CGS 71,300
    FG Inventory 71,300

    2. The Cow Head Company from the following information for June 2020:

    Inventories Beginning Ending


    Raw Material P 6,700 P 8,900
    Work in Process 17,700 22,650
    Finished Goods 29,730 19,990

    Additional information: purchases of raw material were P46,700; 19,700 direct labor hours were
    worked at P11.30 per hour; overhead costs were P33,300.

    a. Prepare a Schedule of Cost of Goods Manufactured.

    ANS:

    Cow Head Company


    Schedule of Cost of Goods Manufactured
    For the Month Ended June 30, 2001

    Work in Process (June 1) P 17,700


    Raw Mat. (June 1) P 6,700
    Purchases 46,700
    Raw Mat. Available 53,400
    Raw Mat. (June 30) (8,900)
    Raw Mat. Used P 44,500
    Direct Labor (19,700  P11.30) 222,610
    Manufacturing Overhead 33,300
    Total Manufacturing Costs 300,410
    Total Goods in Process P318,110
    Work in Process (June 30) (22,650)
    Cost of Goods Manufactured P295,460

    3. In June 2020, the Baby Company has Cost of Goods Manufactured of P296,000; beginning
    Finished Goods Inventory of P29,730; and ending Finished Goods Inventory of P19,990

    The following additional information is available:

    Selling Expenses P 40,500


    Administrative Expenses 19,700
    Sales 475,600

    . Prepare an income statement in good form. (Ignore taxes.)

    ANS:

    Baby Company
    Income Statement
    For the Month Ended June 30, 2001

    Sales P475,600
    Cost of Goods Sold:
    Finished Goods (June 1) P 29,730
    Cost of Goods Mf'd 296,000
    Total Goods Available P325,730
    Finished Goods (June 30) (19,990)
    Cost of Goods Sold (305,740)
    Gross Margin P169,860
    Operating Expenses:
    Selling P40,500
    Administrative 19,700
    Total Operating Expenses (60,200)
    Income from operations P109,660

    4. Forte Company has the following information for November.

    Inventories Beginning Ending


    Raw Material P17,400 P13,200
    Work in Process 31,150 28,975
    Finished Goods 19,200 25,500

    Direct Labor (21,000 DLH @ P13)


    Raw Material Purchases P120,000 Insurance-Office 2,570
    Indirect Labor 11,200 Office Supplies Expense 900
    Factory Supplies Used 350 Insurance-Factory 1,770
    Other Expenses: Depr. Office Equipment 3,500
    Depr.-Factory Equipment 17,300 Repair/Maintenance-Factory 7,400

    Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

    ANS:

    Manufacturing Costs:
    Raw Material (Nov. 1) P 17,400
    Purchases 120,000
    Raw Material Available P137,400
    Raw Material (Nov. 30) (13,200)
    Raw Material Used P124,200
    Direct Labor (21,000  P13) 273,000
    Overhead:
    Depr.-Factory Equipment P124,200
    Repairs/Maintenance-Factory 7,400
    Indirect Labor P 11,200
    Insurance-Factory 1,770
    Factory Supplies Used 350
    Total Overhead 38,020
    Total Manufacturing Costs P435,220

    Cost of Goods Manufactured:


    Total Manufacturing Costs P435,220
    Work in Process (Nov. 1) 31,150
    Work in Process (Nov. 30) (28,975)
    Cost of Goods Manufactured P437,395

    Cost of Goods Sold:


    Finished Goods (Nov. 1) P 19,200
    Cost of Goods Manufactured 437,395
    Total Goods Available P456,595
    Finished Goods (Nov. 30) (25,500)
    Cost of Goods Sold P431,095

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