JOB ORDER

On January 2nd, Munchers Manufacturing purchases 5 rolls of paper on account at P125.00 per
roll for use within the production process. On January 5th 3 rolls of this paper are issued to Job
Job 143 in the Printing Department. The Printing Department records P575.00 in direct labor
and P1,150.00 of factory overhead to Job Job 143. On January 8th Printing transfers Job Job 143
to the Folding Department. The folding department applies P450.00 in direct labor and P655.00
in factory overhead to Job Job 143. Job Job 143 is transferred to Finished Goods Inventory on
January 9th.
(a) Journalize the purchasing of the paper to Raw Materials Inventory.
(b) Journalize the transfer of raw materials to work in process, the application of direct labor,
and the application of manufacturing overhead to Job Job 143 while in the Printing
Department.
(c) Journalize the transfer of Job Job 143 to the Folding Department at actual cost.
(d) Journalize the application of direct labor, and the application of manufacturing overhead to
Job Job 143 while in the Folding Department.
(e) Journalize the transfer of Job Job 143 to Finished Goods Inventory at actual cost.

Selected accounts with some debits and credits omitted are presented as follows:
Work in Process
Debit Credit
Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,230,000
31 Direct materials ?
31 Direct labor 350,000
31 Factory overhead ?

Factory Overhead
Debit Credit
Aug. 1-31 Costs incurred 90,000 Aug. 1 Balance 15,000
31 Applied (30% of Direct Labor) ?
If the balance of Work in Process at August 31 is P200,000, what was the amount debited to
Work in Process for direct materials in August?
a. P700,000
b. P805,000
c. P300,000
d. P605,000

PROCESS COSTING
The inventory at June 1 and costs charged to Work in Process – Mixing Department during June
are as follows:
3,800 units, 80% completed P 60,400
Direct materials, 32,000 units 368,000
Direct labor 244,000
Factory overhead 188,000
Total cost to be accounted for P860,400
During June, 32,000 units were placed into production and 31,200 units were completed,
including those in inventory on June 1. On June 30, the inventory of work in process consisted
of 4,600 units which were 40% completed. Inventories are costed by the first-in, first-out
method and all materials are added at the beginning of the process.
Determine the following, presenting your computations:
(a) equivalent units of production for conversion cost
(b) conversion cost per equivalent unit
(c) total and unit cost of finished goods started in prior period and completed in the current
period
(d) total and unit cost of finished goods started and completed in the current period
(e) total cost of work in process inventory at June 30

Assembly Department had 3,600 units, one-third completed at the beginning of the period,
12,000 units were completed during the period, 2,000 units were one-fifth completed at the
end of the period, and the following manufacturing costs were debited to the departmental
work in process account during the period:
Work in process, beginning of period P30,000
Costs added during period:
Direct materials (10,400 at P8) 83,200
Direct labor 62,000
Factory overhead 24,800

Assuming that all direct materials are placed in process at the beginning of production and that
the first-in, first-out method of inventory costing is used, what is the equivalent units for
materials and conversion costs, respectively.
a. 14,000 and 14,800
b. 10,400 and 11,200
c. 14,000 and 13,600
d. 10,400 and 10,000
The debits to Work in Process--Assembly Department for April, together with data concerning
production, are as follows:
April 1, work in process:
Materials cost, 3,000 units P 7,500
Conversion costs, 3,000 units,2/3 completed 6,000
Materials added during April, 10,000 units 26,000
Conversion costs during April 31,000
Goods finished during April, 11,500 units --- ?
April 30 work in process, 1,500 units, 1/2 completed --- ?
All direct materials are placed in process at the beginning of the process and the average cost
method is used to cost inventories.
The materials cost per equivalent unit (to the nearest cent) for April is:
a. P2.60
b. P2.58
c. P3.02
d. P2.26

The conversion cost per equivalent unit (to the nearest cent) for April is:
a. P2.70
b. P2.53
c. P3.02
d. P5.60

STANDARD COSTING
The following information is for the standard and actual costs for the Miller Corporation.
Standard Costs:
Budgeted units of production - 16,000 (80% of capacity)
Standard labor hours per unit - 4
Standard labor rate P26 per hour
Standard material per unit - 8 lbs.
Standard material cost - P 12 per lb.
Budgeted fixed overhead P640,000
Standard variable overhead rate - P15 per labor hour.
Fixed overhead rate is based on budgeted labor hours at 80% capacity.

Actual Cost:
Actual production - 16,500 units
Actual fixed overhead - P640,000
Actual variable overhead - P1,000,000
Actual labor - 65,000 hours, total labor costs P1,700,000
Actual material purchased and used - 130,000 lbs, P1,600,000
Actual variable overhead - P1,000,000
Determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b)
the efficiency variance, rate variance, and total direct labor cost variance; and (c) the volume
variance, controllable variance, and total factory overhead cost variance.

Prepare an income statement for the year ended December 31, 2025, through gross profit for K
Company using the following information. Assume RiaLyze Company sold 8,600 units at P125
per unit. (Note: Normal production is (9,000 units))
Standard: 5 yards per unit @ P6.30/yd Actual yards used: 43,240 yards @ 6.25/yd
Standard: 2.25 hours per unit @ P15 Actual hours worked: 19,100 @
P14.90/hr
Standard: Variable overhead P1.05 per unit
Standard: Fixed overhead P211,500 Actual factory overhead P235,500

Standard Actual
Material Cost Per Yard P2.00 P2.04
Standard Yards per Unit 5 yards 4.75 yards
Units of Production 9,450

Calculate the Total Direct Materials cost variance using the above information:
a. P2,929.50 Unfavorable
b. P2,929.50 Favorable
c. P3,780.00 Unfavorable
d. P3,562.50 Favorable
Calculate the Total Direct Materials Price variance using the above information:
a. P1,795.50 Favorable
b. P378 Favorable
c. P1,795.50 Unfavorable
d. P378 Unfavorable

The July Corporation had 8,000 actual direct labor hours at an actual rate of P12.20 per hour.
Original production had been budgeted for 1,100 units, but only 1,000 units were actually
produced. Labor standards were 7.5 hours per completed unit at a standard rate of P13 per
hour.
Compute the labor rate variance.
a. 6,400U
b. 6,400F
c. 6,500U
d. 6,500U

Compute the labor efficiency variance.

The standard factory overhead rate is P10 per direct labor hour (P8 for variable factory
overhead and P2for fixed factory overhead) based on 100% capacity of 30,000 direct labor
hours. The standard cost and the actual cost of factory overhead for the production of 5,000
units during May were as follows:
Standard: 25,000 hours at P10 P250,000
Actual: Variable factory overhead 202,500
Fixed factory overhead 60,000 262,500

What is the amount of the factory overhead volume variance?

What is the amount of the factory overhead controllable variance?