Problem : 1
1. Direct Materials
2. Manufacturing Overhead
3. Direct Materials
4. Direct Labor
5. Manufacturing Overhead
6. Direct Labor
7. Direct Materials
8. Manufacturing Overhead
9. Manufacturing Overhead
10. Manufacturing Overhead
Problem : 2
1. Fixed Cost
2. Variable Cost
3. Mixed Cost
4. Fixed Cost
5. Variable Cost
6. Fixed Cost
7. Mixed Cost
8. Variable Cost
9. Variable Cost
10. Variable Cost
Problem : 3
1. M
2. S
3. M
4. M
5. A
Problem : 4
1. F - P
2. V - I
3. V - I
4. V - I
5. V - I
6. V - P
7. V - I
8. V - I
9. F - P
10. V - P
Problem : 5
1.) Prime Cost = ₱102,000
Prime Cost = Direct Materials + Direct Labor
Prime Cost = ₱50,000 + ₱52,000
Prime Cost = ₱102,000
2.) Conversion Cost = ₱147,000
Conversion Cost = Direct Labor + Manufacturing Overhead
Conversion Cost = ₱52,000 + ₱95,000
Conversion Cost = ₱147,000
3.) Total Product Cost = ₱197,000
Total Product Cost = Direct Materials + Direct Labor + MOH
Total Product Cost = ₱50,000 + ₱52,000 + ₱95,000
Total Product Cost = ₱197,000
4.) Total Period Cost = ₱21,200
Total Period Cost = Selling Cost + Administrative Cost
Total Period Cost = ₱2,600 + ₱18,600
Total Period Cost = ₱21,200
5.) Net Income = ₱26,500
Unit sold = 5,000 units x 90% = 4,500
Sales = 4,500 units x ₱50.00 (selling price) = ₱225,000
Product Cost = ₱197,000 x 90% = ₱177,300
Gross Profit = ₱225,000 - ₱177,300 = ₱47,700
Net Income = ₱47,700 - ₱21,200 = ₱26,500
Net Income = ₱26,500
Problem : 6
1.) Prime Cost = ₱530,000
Prime Cost = Direct Materials + Direct Labor
Prime Cost = ₱285,000 + ₱245,000
Prime Cost = ₱530,000
2.) Conversion Cost = ₱575,000
Conversion Cost = Direct Labor + MOH
Conversion Cost = ₱245,000 + ₱330,000
Conversion Cost = ₱575,000
3.) Total Inventoriable/Product Cost = ₱860,000
Total Inventoriable/Product Cost = Direct Materials + Direct Labor + MOH
Total Inventoriable/Product Cost = ₱285,000 + ₱245,000 + ₱330,000
Total Product Cost = ₱860,000
4.) Total Period Cost = ₱305,000
Total Period Cost = Selling Cost + Administrative Cost
Total Period Cost = ₱160,000 + ₱145,000
Total Period Cost = ₱305,000
Problem : 7
1.) Variable manufacturing cost per unit = ₱99.00
Direct Materials = ₱60.00
Direct Labor = 30.00
Variable Manufacturing Overhead = 9.00
Total Variable Manufacturing cost per unit= ₱99.00
2.) Varibale cost per unit = ₱105.00
Total Variable manufacturing cost per unit = ₱99.00
Variable Marketing & Administrative = 6.00
Total Variable cost per unit = ₱105.00
3.) Full manufacturing cost per unit = ₱124.00
Total Variable manufacturing cost per unit = ₱99.00
Fixed Manufacturing Overhead (30,000/1,200) = 25.00
Full manufacturing cost per unit = ₱124.00
4.) Full cost to make and sell per unit = ₱150.00
Full manufacturing cost per unit = ₱124.00
Variable Marketing & Administrative = 6.00
Fixed Marketing & Administrative (24,000/1,200) = 20.00
Full cost to make and sell per unit = ₱150.00
Problem : 8
1.) The variable cost per machine hour = ₱7.00
Formula: Variable rate = highest point cost - lowest point cost
highest output - lowest output
Variable rate = ₱60,000 - ₱39,000
6,000 - 3,000
= ₱7.00
2.) The monthly fixed electricity cost = ₱18,000
Formula: Fixed Cost = Total cost at highest - (variable rate - output at lowest point)
Fixed Cost = ₱60,000 - (₱7.00 x 6,000)
= ₱60,000 - ₱42,000
= ₱18,000
3.) Total Electricity cost if 4,800 machine hours = ₱33,600
Formula: Total variable cost = variable cost per unit x total output
= ₱7.00 x 4,800
= ₱33,600 + 18,000 = ₱51,200
Problem : 9
1.) Variable rate per machine hour = ₱7.80
Formula: Variable rate = highest point cost - lowest point cost
highest output - lowest output
Variable rate = ₱35,600 - ₱20,000
4,000 - 2,000
= ₱7.80
2.) Fixed portion of Johnson's electricity expense = ₱4,400
3.) Total Manufacturing Cost if Johnson's actual mach. hrs. is 4,500 = ₱39,500
Fixed Cost = ₱4,400
Variable Cost (7.80 x 4,500) = 35,100
Total Manufacturing Cost = ₱39,500
