19. James Company uses a job order cost sytem. The following debits (credits) appeared in James account for the month of April 2020: AprilDescriptionAmount 1 BalanceP4,000 30 Direct Materials24,000 .30Direct labor16,000 .30Factory overhead12,800 .30To finished goods(48,000) James applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only job still in process on April 30, 2020, ahs been charged of direct labor of P2,000. What was the amount of direct materials charged to Job No.5?
19. James Company uses a job order cost sytem. The following debits (credits) appeared in James account for the month of April 2020: AprilDescriptionAmount 1 BalanceP4,000 30 Direct Materials24,000 .30Direct labor16,000 .30Factory overhead12,800 .30To finished goods(48,000) James applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only job still in process on April 30, 2020, ahs been charged of direct labor of P2,000. What was the amount of direct materials charged to Job No.5?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
19. James Company uses a job order cost sytem. The following debits (credits) appeared in James account for the month of April 2020:
AprilDescriptionAmount
1 BalanceP4,000
30 Direct Materials24,000
.30Direct labor16,000
.30Factory overhead 12,800
.30To finished goods(48,000)
James applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only job still in process on April 30, 2020, ahs been charged of direct labor of P2,000. What was the amount of direct materials charged to Job No.5?
20. Ethel Company’s job order system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2020, Ethel’s transactions included the following:
Direct materials issued to productionP 90,000
Indirect materials issued to production 8,000
Manufacturing overhead incurred125,000
Manufacturing overhead applied113,000
Direct labor costs107,000
Ethel had neither beginning nor ending work-in process inventory, What was the cost of jobs completed in January 2020?
21. Petsey Co. Has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs:
Fixed costsP21,000
Variable costs 33,000
The fixed costs include a normal P3,700 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing P7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?
22. Peter Company provided the following data for the year ended December 31, 2020:
Raw materials purchasesP 80,000
Total manufacturing costs220,000
Decrease in raw materials inventory 4,000
Decrease in work in process inventory 20,000
Increased in finished finished goods inventory45,000
Gross margin ratio 40%
Factory overhead is applied at 60% of direct labor. How much is the factory overhead cost incurred?
23. Senen Company provided the following data for the month ended October 31, 2020:
Direct labor (2,000 hours @ P40/hr)P80,000
Inventories, October 1
Raw materials 48,000
Work in process 55,000
Finished goods 81,500
Inventories, October 31
Raw materials 40,000
Work in process 62,000
Finished goods 90,200
Cost of goods sold 204,300
Factory overhead is applied at P36 per direct labor hour. Senen made total purchases of what amount?
24. Kaypee Corporation is a local manufacturer that uses a job order costing. Manufacturing overhead is applied using a predtermined rate based on direct labor cost. The cost ledger shows the following information for the month of August.
Work in process Inventory
DebitCredit
Balance, Aug 1P250,000
Materials used 120,000
Direct labor 100,000
Applied FOH 80,000
Goods ManufacturedP296,000
Kaypee had three outstanding jobs in ending work in process that are expected to be delivered in the following month:
Job #108 with direct materials of P35,000 and direct labor of P20,000
Job # 109 with direct materials of P45,000 and direct labor of P25,000
Job #110 with applied overhead of P28,000.
What is the total cost of Job #108?
25. Kaypee Corporation is a local manufacturer that uses a job order costing. Manufacturing overhead is applied using a predtermined rate based on direct labor cost. The cost ledger shows the following information for the month of August.
Work in process Inventory
DebitCredit
Balance, Aug 1P250,000
Materials used 120,000
Direct labor 100,000
Applied FOH 80,000
Goods ManufacturedP296,000
Kaypee had three outstanding jobs in ending work in process that are expected to be delivered in the following month:
Job #108 with direct materials of P35,000 and direct labor of P20,000
Job # 109 with direct materials of P45,000 and direct labor of P25,000
Job #110 with applied overhead of P28,000.
What was the total cost of Job # 109?
Transcribed Image Text:22. Peter Company provided the following data for the
year ended December 31, 2020:
Raw materials purchases
Total manufacturing costs
Decrease in raw materials inventory
Decrease in work in process inventory
Increased in finished finished goods
inventory45,000
Gross margin ratio
Factory overhead is applied at 60% of direct labor. How
much is the factory overhead cost incurred?
P 80,000
220,000
4,000
20,000
40%
23. Senen Company provided the following data for the
month ended October 31, 2020:
Direct labor (2,000 hours
P40/hr)
Inventories, October 1
Raw materials
P80,000
Work in process
Finished goods
48,000
55,000
81,500
Inventories, October 31
40,000
62,000
90,200
204,300
Factory overhead is applied at P36 per direct labor hour.
Raw materials
Work in process
Finished goods
Cost of goods sold
Senen made total purchases of what amount?
24. Kaypee Corporation is a local manufacturer that uses
a job order costing. Manufacturing overhead is applied
using a predtermined rate based on direct labor cost. The
cost ledger shows the following information for the
month of August.
Work in process Inventory
Credit
P250,000
120,000
100,000
80,000
Debit
Balance, Aug 1
Materials used
Direct labor
Applied FOH
Goods Manufactured
P296,000
Kaypee had three outstanding jobs in ending work in
process that are expected to be delivered in the following
month:
Job #108 with direct materials of P35,000 and direct
labor of P20,000
Job # 109 with direct materials of P45,000 and
direct labor of P25,000
Job #110 with applied overhead of P28,000.
What is the total cost of Job #108?
Transcribed Image Text:19. James Company uses a job order cost sytem. The
following debits (credits) appeared in James account for
the month of April 2020:
April
Description
Amount
Balance
P4,000
24,000
16,000
12,800
(48,000)
1
30
Direct Materials
.30
Direct labor
Factory overhead
To finished goods
.30
.30
James applies overhead to production at a predetermined
rate of 80% of direct labor cost. Job No. 5, the only job
still in process on April 30, 2020, ahs been charged of
direct labor of P2,000. What was the amount of direct
materials charged to Job No.5?
20. Ethel Company's job order system, manufacturing
overhead is applied to work in process using a
predetermined annual overhead rate. During January
2020, Ethel's transactions included the following:
Direct materials issued to production
Indirect materials issued to production
P 90,000
8,000
Manufacturing overhead incurred
Manufacturing overhead applied
Direct labor costs
125,000
113,000
107,000
Ethel had neither beginning nor ending work-in process
inventory, What was the cost of jobs completed in
January 2020?
21. Petsey Co. Has considerable excess manufacturing
capacity. A special job order's cost sheet includes the
following applied manufacturing overhead costs:
Fixed costs
P21,000
33,000
Variable costs
The fixed costs include a normal P3,700 allocation for
in-house design costs, although no in-house design will
be done. Instead, the job will require the use of external
designers costing P7,750. What is the total amount to be
included in the calculation to determine the minimum
acceptable price for the job?
22. Peter Company provided the following data for the
year ended December 31, 2020:
Raw materials purchases
Total manufacturing costs
Decrease in raw materials inventory
P 80,000
220,000
4,000
Decrease in work in nrecess inventery.
20. 000
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