BIBPI CAT Level 2 Review Material | 2017 Revised Edition
MODULE 4
SUGGESTED SOLUTIONS
PROBLEM 1
a.) Work in Process 98,000
Materials 98,500
b.) Work in Process 156,000
Payroll 156,000
c.) Work in Process 118,500
FO Applied 118,500
d.) Finished Goods 343,500
Work in Process 343,000
Job 201 - P 190,000
Job 202 - 94,000
Job 203 - 59,000
Total - P 343,000
e.) Accounts Receivables 350,000
Sales 350,000
f.) Cost of Goods Sold 284,000
Finished Goods 284,000
Cost of Goods Sold Statement
Direct Materials P 98,500
Direct Labor 156,000
Factory Overhead 118,500
Total Manufacturing Costs P 373,000
Less: Work in Process, end 30,000
Cost of Goods Manufactured P 343,000
Less: Finished Goods, end 59,000
Cost of Goods Sold P 284,000
PROBLEM 2
1. Materials – April 1 P 64,000
Purchases 84,000
Materials – April 30 (60,000)
Direct Materials used (78,000)
Indirect Materials used P 10,000
2. Accrued Payroll – April 30 P 6,000
Payroll paid 44,000
Direct Labor cost (32,000)
Indirect Labor P 18,000
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BIBPI CAT Level 2 Review Material | 2017 Revised Edition
3. Direct Labor cost 32,000
Factory Overhead rate 125%
Factory Overhead Applied 40,000
4. Direct Materials P 78,000
Direct Labor 32,000
Factory Overhead 40,000
Total Manufacturing cost 150,000
Work in Process, beg 82,000
Work in Process, end (94,000)
Cost of Goods Manufactured P 138,000
5. Cost of Goods Manufactured P 138,000
Finished Goods, April 1 296,000
Finished Goods, April 30 (304,000)
Cost of Goods Sold P 130,000
PROBLEM 3
JOB ORDER no.
1401 1402 1403 Total
Direct Materials P 7,000 P 5,800 P 11,600 P24,400
Direct Labor 6,600 6,000 8,400 21,000
Applied Factory Overhead:
1401: 1,100 x (P2+3) 5,500
1402: 1,000 x P5 5,000
1403: 1,400 x P5 _________ _________ ___7,000 __17,500
Total P 19,100 P 16,800 P 27,000 P 62,900
PROBLEM 4
Direct Materials inventory, October 1, 2017 P 48,600
Add: Purchases 60,000
Direct Materials Available for use P 108,600
Less: Direct Materials inventory, October 31, 2017 51,000
Direct Materials used P 57,600
Direct Labor (9,900 hrs x P5) 49,500
Applied Factory Overhead (9,900 x 2.5) 24,750
Manufacturing Cost P 131,850
Add: Work in process, October 1, 2017 10,710
Total Placed in Process P 142,560
Less: Work in Process, October 31, 2017 24,210
Cost of Goods Manufactured P 118,350
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BIBPI CAT Level 2 Review Material | 2017 Revised Edition
PROBLEM 5
1. Materials 15,000.00
Accounts payable 15,000.00
2. Work in process 11,480.00
FOC 40.00
Materials 11,520.00
2. Payroll 5,445.00
Accrued payroll 5,445.00
Work in process 4,645.00
FOC 800.00
Payroll 5,445.00
4. FOC 2,675.00
Rent Expense Payable 1,500.00
Accum. Depreciation – Machines 160.00
Accum. Depreciation – Factory Building 490.00
Utilities Expense Payable 225.00
Payroll Taxes Payable 300.00
5. Work in process 5,261.25
FO Applied 5,261.25
6. Finished goods 21,386.25
Work in process 21,386.25
Job 101 Job 102 Total
Direct Materials 10,500.00 980.00 11,480.00
Direct Labor 3,175.00 1,470.00 4,645.00
Factory overhead 3,618.75 1,642.50 5,261.25
Total 17,293.75 4,092.50 21,386.25
7. Cash 25000.00
Sales 25000.00
Cost of Goods Sold 17293.75
Finished goods 17293.75
Accounts receivable 4000.00
Sales 4000.00
Cost of goods sold 4092.50
Finished goods 4092.50
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