Raw Materials Purchased 430,000

Less: Increase in materials inventory (15,000)

Raw Material used 415,000

Add: Direct Labor payroll 200,000

Factory Overhead 300,000

Decrease in Finished Goods Inventory 35,000

COST OF GOODS SOLD 950,000

 1201 1202 1203
Direct Materials 7,000 5,800 11,600
Direct Labor Cost 6,600 6,000 8,400
Direct Labor Hrs 1,100(x5)=5,500 1,000(x5)=5000 1,400(x5)=7,000
19,100 16,800 27,000
=62,900

Note: (x5) from P2 per direct labor hour + P3 per hour for fixed overhead
Direct Materials (90% of Materials) 164,250

Direct Labor (93% of Labor) 225,525

Factory Overhead( 125% of Direct Labor) 281,906

Total Manufacturing Cost 671,681

Add: WIP Beg 88,125

Less: WIP End. 67,500

COST OF GOODS MANUFACTURED 692,306

Metal wire 500,000

Plastic coating 380,000

TOTAL DIRECT MATERIALS 880,000

Cost of Good Sold (50,000 x.75/.25) 150,000

Add; Increase in Finished Goods (60,000-78,000) 18,000

Cost of Goods Manufactured 168,000

Cost of Good Sold 150,000

Add: Finished Goods Ending 78,000

Less: Finished Good Beginning 60,000

Cost of Goods Manufactured 168,000

Add: WIP End 95,000

Less: WIP Beg. (80,000)

Direct Labor(63,000/.75) (84,000)

Factory Overhead (63,000)

Direct Materials Used 86,000

Less: Purchases 46,000

Raw materials Inventory 40,000

Direct Materials 106,000

Direct Labor 300,000

Factory Overhead 74,000

480,000

Add: Work in Process Inventory Beginning 30,000

Less: Work in Process Inventory Ending (40,000)

COST OF GOODS MANUFACTURED 470,000

Raw Materials Inventory Beg. 150,000

Purchases 672,000

Less: Raw Materials End. 170,000

Direct Materials Used 652,000

Direct Labor 480,000

Factory Overhead (50% of DL) 240,000

Total Manufacturing cost 1,372,000

Direct Materials used 60,000

Direct Labor (8,000x5.60) + (4,600x6.00) 72,400

Factory Overhead (8,000x6) + (4,600x8) 84,800

Total Manufacturing Cost 217,200

Add: WIP Beg. 15,000

Less: WIP End. (17,600)

Cost of Goods Manufactured 214,600

Add: Finished Goods Beg. 22,000

Less: Finished Goods End. (17,000)

COST OF GOODS SOLD 219,600

Total Debit WIP 145,000

Less: Total Credit WIP 124,450

WIP Inventory 19,550

Less: Direct Labor and Factory Overhead

Job. 456 Direct Labor 3,000

Factory Overhead(3,000x.75) 2,250

Job 789 Direct Labor (2,400x 4/3) 3,200

Factory Overhead 2,400 10,850

8,700
Direct Materials 75,000

Direct Labor (40,000+100,000 + 20,000) 160,000

Applied Overhead (40kx3)+(100kx.20)+20kx.50)) 150,000

Total Manufacturing Cost 385,000

Beg. Raw Materials Inventory 37,500

Add: Purchases 160,000

Less: Ending Raw Materials 43,500

Direct Materials Used 154,000

Add: Direct Labor 120,000

Factory Overhead 108,000

382,000

Add: WIP Beginning 61,500

Less: WIP Ending 57,500

COST OF GOODS MANUFACTURED 386,000

Direct Labor (8x400)=3,200 (20x400)=8000

Direct Materials (10x300)= 3000 (8x300)=2400

200 5600

5600/200= 28

28x20.0= 560 debit

Depreciation of factory equipment 1,000

Wages of production worker 28,000

Raw Materials 47,000

Factory Rent 2,000

Factory Insurance 500

Materials Handling 1,500

TOTAL MANUFACTURING COST 80,000

Cost of Goods Sold 100,600

Add: Finished Goods Inventory Ending 20,400

Less: Finished Goods Inventory Beg. (14,000)

Cost of Goods Manufactured 107,000

Add: Work in Process Inventory Ending 30,000

Less: Work in Process Inventory Beg. (16,000)

121,000

Less: Factory Labor (20,000)

Direct Labor (30,000)

71,000

Add: Raw Materials Inventory Ending 17,000

Less: Raw Materials Inventory Beg. (16,000)

COST OF RAW MATERIALS PURCHASES 72,000

Machine Operator 200,000

DL x 200% = Factory Overhead

DL x 200%= 40,000

DL= 40,000 / .200 = 20,000

Factory Overhead = 30,000 x.50= 15,000

A B
Direct Materials 25,000 5,000 30,000
Direct Labor 20,000 30,000 50,000
Factory Overhead 40,000 15,000 55.000
135,000
Direct Materials

Beginning Raw Materials Inventory 32,400

Add: Purchases of Raw Materials 40,000

Less: Ending Raw Materials Inventory (34,000)

DIRECT MATERIALS USED 38,400

Direct Labor 33,000

Manufacturing Overhead 17,160

88,560

Add: Work in Process Inventory Beginning 7,200

Less: Work in Process Inventory Ending (16,240)

COST OF GOODS MANUFACTURED 79,520

Orders Completed 2,400,000

Orders Shipped Out 2,000,000 4,400,000

Less: Beginning work in process 300,000

Direct labor Cost 800,000

Materials Requisitioned 1,700,000

1,600,000
Manufacturing overhead (50% of DL) 30,101.80

Direct Labor (30,101.80x2) 60,203.60

Total equals 50% of TMC 90,305.40

Cost or Raw materials used equals 90,305.40

TMC 180,601.80

Add: Goods in Process 590

Cost of goods Manufactured 181,200.80

Indirect Materials 5,000

Less: Indirect Labor 45,000

WIP 40,000 5,000

10,000

Add: Other Factory Overhead 20,000

30,000
Materials Inventory 60,000

Purchases 630,000

Ending Raw Materials Inventory 90,000

Direct Materials Used 600,000

Direct Materials used 500,000

Factory Overhead 700,000

Direct Labor 600,000

WIP Inventory Beg. 200,000

Less: WIP Inventory End. 250,000

Cost of Goods Manufactured 1,750,000

Finished Good Beg. 610,000

Finished Good End 760,000

Cost of Goods Sold 1,600,000

Direct materials and Direct Labor 500,000

Depreciation of Manufacturing Equipment 70,000

Depreciation of factory Building 40,000

Janitor’s wages for cleaning factory premises 15,000

625,000
Conversion Cost / Overhead applied rate

1,800,000 / .200 = 900,000

Direct Materials issued to production 90,000

Overhead Applied 113,000

Direct Labor Cost 107,000

310,000
Cost of goods Sold 1,840,000

Finished Goods Inventory End. 36,000

Less:Finished Goods inventory Beg. 46,000

Cost of Goods manufactured 1,830,000

Direct materials (90k x 60%) 54,000

Direct Labor (360 x 18) 6,480

Variable Overhead (360 x 10) 3,600

64,080
REFER TO VIDEO DISCUSSION 
SOLUTION TO BE PROVIDED BY ELLA VILLEGAS
Direct materials During May 20x9 450,000

Direct materials Inventory (25,000)

425,000

Beginning balance 275,000

Add: Other Debits to the Account 825,000

Less: Ending balance(275k + 55k) 330,000

770,000
REFER TO VIDEO SOLUTION
Direct materials inventory 48,600

Add: Purchases 60,000

Less: Direct materials Inventory 51,000

57,600

Direct Labor ( 9,900hrs x 5/hour) 49,500

Applied FOH (9,900hrs x 2.50/hour) 24,750

Total manufacturing cost 131,850

Add: WIP Inventory 10,710

Less: WIP Inventory end of June 24,210

Cost of Goods manufactured 118,350