February 2
February 2
the necessary concepts, research, and analyze the given situation/problem, then come up with your
answer based on the knowledge that you have. Take note that in the process, try to identify your "weak
points" so you can improve on them. This can only be achieved if you are honest in the learning process.
"It is important to pass but it is more important to learn" Good luck!
PROBLEM 1.
COMPANY ABC manufactures espionage equipment. COMPANY ABC uses a job-order cost system and
applies overhead to jobs on the basis of direct labor-hours. For the current year, COMPANY ABC
estimated that it would work 100,000 direct labor-hours and incur P20,000,000 of manufacturing
overhead cost. The following summarized information relates to January of the current year. The raw
materials purchased include both direct and indirect materials.
P1,412,000
P1,299,500
Indirect materials requisitioned into production.............
P98,000
P316,000
P163,200
P190,500
Depreciation on the factory equipment...........................
P890,700
P79,600
P2,494,200
P2,380,000
Sales (all on account)......................................................
P3,570,000
Required:
Prepare journal entries to record COMPANY ABC's transactions for the month of January. Do not
close out the manufacturing overhead account.
PROBLEM 2.
COMPANY XYZ is a manufacturing firm that uses job-order costing. The company's inventory balances
were as follows at the beginning and end of the year:
Beginning Balance
Ending Balance
Raw materials..............................
P26,000
P20,000
Work in process...........................
P71,000
P53,000
Finished goods.............................
P66,000
P81,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-
hours. At the beginning of the year, the company estimated that it would work 44,000 machine-hours
and incur P176,000 in manufacturing overhead cost. The following transactions were recorded for the
year:
Raw materials were requisitioned for use in production, P465,000 (P431,000 direct and P34,000
indirect).
The following employee costs were incurred: direct labor, P296,000; indirect labor, P63,000; and
administrative salaries, P157,000.
Depreciation for the year was P119,000 of which P114,000 is related to factory operations and P5,000 is
related to selling and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 47,000
machine-hours.
Required:
Prepare a schedule of cost of goods manufactured in good form.
Prepare an income statement for the year in good form. The company closes any under-or overapplied
overhead to Cost of Goods Sold.
PROBLEM 3
COMPANY 123 manufactures stereo speakers in two factories; one in BAGUIO and another in LA
TRINIDAD. The BAGUIO factory uses DLP for its overhead rate and the LA TRINIDAD factory uses
machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented
below:
BAGUIO factory
LA TRINIDAD factory
Estimated manufacturing overhead...........
P1,000,000
P1,600,000
(a)______________
200,000 MHs
(d)______________
Actual amount of allocation base..............
(b)______________
190,000 MHs
P1,092,500
P1,472,500
P1,010,000
(e)_______________
(f)_______________
Required:
PROBLEM 4.
ABC Company has a job-order costing system. The company applies manufacturing overhead to jobs
using a predetermined overhead rate based on direct labor cost. The information below has been taken
from the cost records of ABC Company for the past year:
Direct materials used in production...................................................
P1,250
Total manufacturing costs charged to production during the year (includes direct materials, direct labor,
and applied factory overhead)........................................................................................
P6,050
P2,800
P1,000
Inventories:
P130
P80
P250
Work in process, December 31.......................................................
P400
P300
P200
Required:
Compute the predetermined overhead rate that was used during the past year.
Compute the Cost of Goods Manufactured for the past year.
PROBLEM 5
The following cost data relate to the manufacturing activities of the XYZ Company last year:
Property taxes......................................................
P 1,500
Utilities, factory...................................................
2,500
Indirect labor........................................................
5,000
Depreciation, factory...........................................
12,000
Insurance, factory................................................
3,000
Total.....................................................................
P24,000
P16,000
Direct labor cost...................................................
P20,000
Inventories:
P4,000
Direct materials, December 31............................
P3,500
P3,000
P3,750
The company uses a predetermined overhead rate to apply manufacturing overhead cost to
production. The rate last year was P5.00 per machine-hour; a total of 5,000 machine-hours were
recorded for the year.
Required:
Compute the amount of under-or overapplied overhead cost for the year.
PROBLEM 6
CHAM-CHAM uses a job-order costing system with a predetermined overhead rate based on machine-
hours. The company closes out any under- or overapplied overhead to Cost of Goods Sold.
Required:
If overhead is overapplied, what adjustment does the company make to the Cost of Goods Sold?
Is Cost of Goods Sold increased or decreased? Why?
Math100
Statistics - Collection of methods for planning experiments, obtaining data, and then organizing,
summarizing, presenting, analyzing, interpreting, and drawing conclusions.
Variable-Characteristic or attribute that can assume different values
Types of Statistics
Types of Variables
Discrete Variables-Variables which assume a finite or countable number of possible values. Usually
obtained by counting.
Continuous Variables-Variables which assume an infinite number of possible values. Usually obtained by
measurement.
Level of Measurements
Nominal Level
Level of measurement which classifies data into mutually exclusive, all inclusive categories in which no
order or ranking can be imposed on the data.
Ordinal Level
Level of measurement which classifies data into categories that can be ranked. Differences between the
ranks do not exist.
Interval Level
Level of measurement which classifies data that can be ranked and differences are meaningful.
However, there is no meaningful zero, so ratios are meaningless.
Ratio Level
Level of measurement which classifies data that can be ranked, differences are meaningful, and there is
a true zero. True ratios exist between the different units of measure.
Types of Sampling
Random Sampling
Sampling in which the data is collected using chance methods or random numbers.
Systematic Sampling
Convenience Sampling
Stratified Sampling
Sampling in which the population is divided into groups (called strata) according to some characteristic.
Each of these strata is then sampled using one of the other sampling techniques.
Cluster Sampling
Sampling in which the population is divided into groups (usually geographically). Some of these groups
are randomly selected, and then all of the elements in those groups are selected.
Math 100
Population Mean
pop mean
Sample Mean
sample mean
Weighted Mean
The mean when each value is multiplied by its weight and summed. This sum is divided by the total of
the weights.
The median is the midpoint of the data array. The symbol for the Median is MD.
The value that occurs most often in a data set is called the mode.
The midrange is defined as the sum of the lowest and highest values in the data set, divided by 2. The
symbol MR is used for the
midrange.
Properties
Mean
The mean varies less than the median or mode when samples are taken from the same population and
all three measures are computed for these samples.
The mean for the data set is unique and not necessarily one of the data values.
The mean cannot be computed for the data in a frequency distribution that has an open-ended class.
Median
The median is used to find the center or middle value of a data set.
The median is used when it is necessary to find out whether the data values fall into the upper half or
lower half of the distribution.
The Mode
The mode can be used when the data are nominal, such as religious preference, gender.
The mode is not always unique. A data set can have more than one mode, or the mode may not exist for
a data set.
The Midrange
EXAMPLES:
The data represent the number of days off per year for a sample of individuals selected from nine
different countries. Find the mean.
Mean = 20 + 26 + 40 + 36 + 23 + 42 + 35 + 24 + 30
9
Mean = 30.67
The number of rooms in the seven hotels is 713, 300, 618, 595, 311, 401, and 292. Find the median.
Median = 401
If an investor purchased 50 shares of stock at P85 per share, 90 shares at P105 per share, 120 shares at
P110 per share, and another 75 shares at P130 per share, what is the mean cost per share?
335
335
=LaTeX: \frac{36650}{335}
=P 109.40
Color
Number of vehicles
red
35
blue
65
yellow
50
For this data, blue is the mode, since it is the data value that occurred the most frequently
Reviewers were asked to rate a product on a scale of 1 to 5. Find the mean rating, the median rating and
the mode rating
Rating
Frequency
1
4
25
= 4 + 14 + 24 + 20 + 5
25
= LaTeX: \frac{67}{25}
= 2.68
Median = 3
Mode = 3