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Cost Concept Exercises (Chapter 2) - For Seatwork

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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
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