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    Manufacturing Activity

    Uploaded by

    Mark Munoz

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    © All Rights Reserved
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    Manufacturing Activity

    Uploaded by

    Mark Munoz
    20 views1 page

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views1 page

    Manufacturing Activity

    Uploaded by

    Mark Munoz

    Copyright:

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

    Name: _______________________________________________________ Score: ______/ 20

    Multiple Choice. Encircle the best answer.

    1. Manufacturing costs would not include


    a depreciation on factory equipment.
    b indirect labor costs.
    c indirect materials used.
    d sales salaries expense.

    2. Each of the following is true with respect to product costs, except


    a Direct labor is an example of a product cost.
    b Product costs are deducted from revenue when the manufacturing process is completed
    c Product costs are not regarded as expenses of the current period.
    d Product costs represent inventoriable costs.

    3. Which of the following is not likely to be treated as a product cost?


    a Depreciation on the factory.
    b Interest paid on notes payable.
    c Portion of the cost of running the quality control department.
    d Wages paid to factory workers.

    4. The purchases-raw materials account is debited when


    a direct materials are placed into production.
    b direct materials are purchased
    c indirect materials are placed into production.
    d indirect materials are purchased.

    5. The direct labor account is debited


    a at the end of the payroll period, when employees are paid.
    b when a new factory employee begins work.
    c when related labor costs are transferred into the Work in Process Inventory account.
    d when the goods manufactured are completed.

    Problem 1
    In addition to the year-end statement of financial position and income statement, the management of Esterlina Gevera Company required the controller
    to prepare the statement of cost of goods manufactured. During 2021, P361,920 of raw materials were purchased. Operating cost data and inventory
    account balances for 2021 follow:
    Required:
    a. Compute the cost of direct materials used during the year. (5 points)
    b. Compute the total manufacturing costs for the year. (5 points)
    c. Compute the cost of goods manufactured during the year. (5 points)
    Direct Labor (10,430 hours at P9.50 per hour) P 99,085
    Plant Supervision 42,500
    Indirect Labor (20,280 hours at P6.25 per hour) 126,750
    Factory Insurance 8,100
    Factory Utilities 29,220
    Depreciation-Factory Building 46,200
    Depreciation-Factory Equipment 62,800
    Manufacturing Supplies 9,460
    Repairs and Maintenance 14,980
    Selling and Administrative Expenses 76,480
    Raw Materials Inventory, Jan 1, 2021 26,490
    Work in Process Inventory, Jan. 1, 2021 101,640
    Finished Goods Inventory, Jan. 1, 2021 148,290
    Raw Materials Inventory, Dec. 31, 2021 24,910
    Work in Process Inventory, Dec. 31, 2021 100,400
    Finished Goods Inventory, Dec. 31, 2021 141,100

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