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    Manufacturing Exercises 2

    Uploaded by

    Irish Trisha Perez

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

    Manufacturing Exercises 2

    Uploaded by

    Irish Trisha Perez
    35 views2 pages

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
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    35 views2 pages

    Manufacturing Exercises 2

    Uploaded by

    Irish Trisha Perez

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    PROBLEM A.

    The December 31, 2020 trial balance of Niño Company showed the following information:

    1/1/2021 12/31/2021
    Finished goods inventory 1,395,000 1,035,000
    Work in process inventory 270,000 292,500
    Raw materials inventory 382,500 427,500

    Additional information were as follows:

    Sales 31,500,000
    Purchases 5,400,000
    Freight in 67,500
    Direct labor 7,200,000
    Sales salaries 450,000
    Sales returns and allowances 45,000
    Factory overhead 4,230,000
    Advertising expense 337,500
    Delivery expense 135,000

    Required:
    1. How much is the total manufacturing cost for the year 2021?
    2. Compute for the cost of goods manufactured.
    3. How much is the cost of goods sold to be presented in the 2021 statement of comprehensive
    income?

    PROBLEM B.
    On December 2020, Coffee Company incurred the following costs:

    Direct materials 450,000


    Factory overhead 562,500
    Direct labor 236,250

    Pertinent inventory information is as follows:

    Beginning Ending
    Raw materials inventory 562,500 281,250
    Work in process inventory 810,000 787,500
    Finished goods inventory 787,500 450,000

    Compute for the following:


    4. Total manufacturing cost
    5. Cost of goods manufactured
    6. Cost of goods sold
    PROBLEM C.
    The following information is available for Oxo Company for the month of June:

    Beginning Ending
    Raw materials inventory 111,000 75,000
    Work in process inventory 246,600 111,000
    Finished goods inventory 177,000 93,000

    Raw materials purchases 1,320,000


    Indirect labor 127,200
    Factory supplies used 6,000
    Depreciation expense - factory equipment 61,800
    Utilities expense - factory 30,000
    Insurance expense - office 153,000
    Office supplies expense 11,400
    Insurance expense - factory 60,000
    Depreciation expense - office equipment 30,000
    Repair and maintenance expense - factory 42,000
    Utilities expense - store 9,000

    Direct labor hours incurred 21,000 hours costing P90 per hour.

    Compute for the following:


    7. Total manufacturing cost
    8. Cost of goods manufactured
    9. Cost of goods sold

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