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    Ca 4

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    lerabadol
    The document contains 13 journal entries recording various transactions for Riverside Company such as purchasing materials, tracking work in process and factory overhead costs for 3 jobs, recording payroll expenses, and ultimately recognizing the costs of goods sold and sales. It also provides additional details on the direct costs and factory overhead applied to each job.

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    Ca 4

    Uploaded by

    lerabadol
    10 views4 pages
    The document contains 13 journal entries recording various transactions for Riverside Company such as purchasing materials, tracking work in process and factory overhead costs for 3 jobs, recording payroll expenses, and ultimately recognizing the costs of goods sold and sales. It also provides additional details on the direct costs and factory overhead applied to each job.

    Original Description:

    Answer key for Cost accounting

    Original Title

    CA-4

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    The document contains 13 journal entries recording various transactions for Riverside Company such as purchasing materials, tracking work in process and factory overhead costs for 3 jobs, recording payroll expenses, and ultimately recognizing the costs of goods sold and sales. It also provides additional details on the direct costs and factory overhead applied to each job.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views4 pages

    Ca 4

    Uploaded by

    lerabadol
    The document contains 13 journal entries recording various transactions for Riverside Company such as purchasing materials, tracking work in process and factory overhead costs for 3 jobs, recording payroll expenses, and ultimately recognizing the costs of goods sold and sales. It also provides additional details on the direct costs and factory overhead applied to each job.

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    © All Rights Reserved
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    Problem 1 – Riverside Company

    1 Journal entries
    1. Materials 70,000
    Accounts payable 70,000

    2. Work in process 55,000


    Job 401 P13,750
    Job 402 P17,500
    Job 403 P23,750
    Factory overhead control 7,500
    Materials 62,500

    3. Materials 2,000
    Work in process 1,250
    Job 403 P1,250
    FO Control 750

    4. Accounts payable 2,500


    Materials 2,500

    5. Payroll 82,000
    Withholding taxes payable 7,562.50
    SSS Premiums payable 4,000
    Phil Health contributions payable 937.50
    Pag-ibig funds contributions payable 3,000
    Accrued payroll 66,500

    Accrued payroll 66,500


    Cash 66,500

    6. Work in process 73,500


    Job 401 P26,000
    Job 402 P21,250
    Job 403 P26,250
    Factory overhead control 8,500
    Payroll 82,000

    Note: change direct labor cost for Job 402 from P31,250 to P21,250.

    7. Factory Overhead Control 8,937.50


    SSS Premiums payable 5,000
    Phil Health cont. payable 937.50
    Pag-ibig cont. payable 3,000
    8 FO Control 37,500
    Accum Depr. 7,500
    Prepaid ins. 2,375
    Accounts payable 27,625

    9. Work in process 58,800


    FO Applied 58,800

    10. Finished goods 162,550


    WIP 162,550
    Job 401 79,300
    Job 402 83,250

    11. Accounts receivable 111,020


    Sales (79,300 x 140%) 111,020

    Cost of goods sold 79,300


    FG 79,300

    12. Cash 87,500


    Accounts receivable 87,500

    13. Factory overhead applied 58,800


    Cost of goods sold 2,887.50
    Factory overhead control 61,687.50

    Job 401
    Direct materials Direct labor Factory overhead
    7,500 6,250 5,000
    13,750 26,000 20,800
    21,250 32,250 25,800

    Job 402
    Direct materials Direct labor Factory overhead
    14,000 7,500 6,000
    17,500 21,250 17,000
    31,500 28,750 23,000

    Job 403
    Direct materials Direct labor Factory overhead
    23,750 26,250 21,000
    ( 1,250)

    3. Cost of goods sold statement

    Direct materials used


    Materials, August 1 55,000
    Purchases 70,000
    Less. Purchase returns 2,500 67,500
    Total available for use 122,500
    Less: Materials, Aug. 31 62,000
    Ind. Materials (7,500-750) 6,750 68,750 53,750
    Direct labor 73,500
    Factory overhead 58,800
    Total manufacturing costs 186,050
    Work in process, Aug. 1 46,250
    Cost of goods put into process 232,300
    Less: Work in process, Aug. 31 69,750
    Cost of goods manufactured 162,550
    Finished goods, Aug. 1 62,500
    Total goods available for sale 225,050
    Less: Finished goods, Aug. 31 145,750
    Cost of goods sold - normal 79,300
    Add. Under applied factory overhead 2,887.50
    Cost of goods sold 82,187.50

    Problem 8 – Cornerstone Company


    1) Job 101 P 218,750
    Job 102 150,000
    WP, July 1 P 368,750

    2) Job 101 100,000 x 125% = P 125,000


    Job 102 118,750 x 125% = 148,437.50
    Job 103 143,750 x 125% = 179,687.50
    Total 453,125

    3) Job 101 Job 102 Total


    WP, beg. 218,750 150,000 368,750
    Cost added
    Materials 68,750 100,000 168,750
    Labor 100,000 118,750 218,750
    Overhead 125,000 148,437.50 273,437.50
    Total 512,500` 517,187.50 1,029,687.50

    4) Job 101 512,500


    Add: Under-applied factory overhead
    Actual FO 468,750
    Less: Applied FO 453,125 15,625
    Cost of goods sold – actual 528,125`

    5) FG, Inventory July 31 (Job 102) 517,187.50

    6) WP, Inventory, July 31 ( Job 103)


    Materials 115,000
    Labor 143,750
    Factory overhead 179,687.50
    Total WP Inventory, July 31 438,437.50

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