Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Accounting and Control (Cabrera, 2021 Edition) Cost Concept: Exercises Problem A. The selected amounts that follow were taken from NCBA Corporation's accounting records: Raw material used Direct labor Total manufacturing costs Work-in-process inventory, 1/1 Cost of goods manufactured Cost of goods available for sale Finished-goods inventory, 12/31 Sales revenue Selling and administrative expenses Income tax expense P 27,000 35,000 104,000 19,000 100,000 175,000 60,000 300,000 125,000 18,000 Required: Compute the following: 1. Manufacturing overhead. 2. Work-in-process inventory, 12/31. 3. Finished-goods inventory, 1/1. 4. Cost of goods sold. 5. Gross margin. 6. Net income. PROBLEM B. Consider the following items: A. B. C. D. E. F. G. H. I. Tomatoes used in the manufacture of Papa ketchup Administrative salaries of executives employed by Philippine Airlines Wages of assembly-line workers at a car plant Marketing expenditures of Uniqlo Commissions paid to Coca-Cola's salespeople Straight-line depreciation on manufacturing equipment owned by Rebisco Co. Shipping charges incurred by SM Department Store on out-going orders Speakers used in Sony home-theater systems Insurance costs related to a BLK Cosmetics' manufacturing plant Required: Complete the table that follows and classify each of the costs listed as (1) a product or period cost and (2) a variable or fixed cost by placing an "X" in the appropriate column. Item A B C D E F G H I Product or Period Cost Product Period Variable or Fixed Cost Variable Fixed Problem C. Using the following data for a recent period, calculate the beginning finished goods inventory: Sales........................................................................ Beginning finished goods inventory ....................... Cost of goods manufactured ................................... Ending finished goods inventory ............................ Cost of goods sold .................................................. Gross margin........................................................... Administrative and selling expenses....................... Net operating income.............................................. P40,000 ? P16,000 P5,000 ? P17,000 ? P10,000 Required: Complete the missing data Problem D. A partial listing of costs incurred during March at NCBA Corporation appears below: Factory supplies ............................................................. P9,000 Administrative wages and salaries ................................. P85,000 Direct materials......................................................................P126,000 Sales staff salaries .......................................................... P30,000 Factory depreciation....................................................... Corporate headquarters building rent ............................. Indirect labor .................................................................. Marketing ....................................................................... Direct labor..................................................................... Required: 7. How much is the total period cost? 8. How much is the total overhead? P33,000 P43,000 P26,000 P65,000 P99,000