The following account balances and other information for Barfield Company pertain to November operations: Account Balances November 1 November 30 Finished goods P 70,000 P 60,000 Work in process 50,000 ? Direct materials 10,000 25,000 Accounts payable ? 15,000 Accrued payroll 10,000 20,000 Accumulated depreciation - factory equipment 80,000 90,000 Other information: Direct materials purchase on account during November, P50,000. Barfield Company applies factory overhead at a predetermined rate of P3 per direct labor hour. During November, direct labor employees worked 25,000 hours at a rate of P4 per hour. Jobs 385, 386, and 387 were still in process at the end of November. A total of P5,000 direct materials has been charged to these three jobs. To date, 5,000 direct labor hours have been worked on these jobs. The accrued payroll account is used for factory employees only. Assuming no payroll deductions, payment to factory employees during the month totaled P140,000. Factory overhead was underapplied by P5,000. Payments on account totaled P55,000. Required: Determine the following – Direct materials charged to operations Factory overhead applied during the month Ending inventory of work in process Cost of goods manufactured Cost of goods sold before over-under applied Indirect labor Miscellaneous factory overhead Accounts payable, November 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following account balances and other information for Barfield Company pertain to November operations:

	Account Balances
	November 1	November 30
Finished goods	P 70,000	P 60,000
Work in process	50,000	?
Direct materials	10,000	25,000
Accounts payable	?	15,000
Accrued payroll	10,000	20,000
Accumulated depreciation - factory equipment	80,000	90,000

Other information:

Direct materials purchase on account during November, P50,000.
Barfield Company applies factory overhead at a predetermined rate of P3 per direct labor hour.
During November, direct labor employees worked 25,000 hours at a rate of P4 per hour.
Jobs 385, 386, and 387 were still in process at the end of November. A total of P5,000 direct materials has been charged to these three jobs. To date, 5,000 direct labor hours have been worked on these jobs.
The accrued payroll account is used for factory employees only. Assuming no payroll deductions, payment to factory employees during the month totaled P140,000.
Factory overhead was underapplied by P5,000.
Payments on account totaled P55,000.

Required: Determine the following –

Direct materials charged to operations
Factory overhead applied during the month
Ending inventory of work in process
Cost of goods manufactured
Cost of goods sold before over-under applied
Indirect labor
Miscellaneous factory overhead
Accounts payable, November 1

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