The Kamandag Corporation, began operations on October 1. It employs a job order costing system. Overhead is charged at a normal rate of P2.50 per direct labor hour. The actual operations for the month of October are summarized as follows: a. Purchase of raw material, 25,000 pieces @ P1.20/piece b. Material and labor costs charged to production: Job No. Units Material Direct labor cost Direct labor hours 001 10,000 P4,000 P6,000 3,000 002 8,800 3,600 5,400 2,700 003 16,000 7,000 9,000 4,500 004 8,000 3,200 4,800 2,400 005 20,000 8,000 3,600 1,800 c. Actual overhead costs inccured during October amounted to P33,500 d. Completed jobs: 001, 002, 003, and 004 e. Sales for a month of October amounted to P105,000. All units produced on Jobs 101, 102, and 103 were sold. 23. What is the balance of the materials inventory account on October 31? a. 0 b. 4,200 c. 25,800 d. 30,000 24. What is the balance of the work in process inventory account on October 31? a. 11,600 b. 13,600 c. 16,100 d. 18,100 25. What is the balance of the finished goods inventory account on October 31? a. 8,000 b. 14,000 c. 20,000 d. 68,000 26. How much is the cost of goods sold for October? a. 35,000 b. 60,500 c. 54,000 d. 68,000 27. How much is the under-or over-applied overhead for October? a. 0 b. 2,500 underapplied c. 2,500 overapplied d. 3,500 overapplied

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...

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Question

The Kamandag Corporation, began operations on October 1. It employs a job order costing
system. Overhead is charged at a normal rate of P2.50 per direct labor hour. The actual
operations for the month of October are summarized as follows:
a. Purchase of raw material, 25,000 pieces @ P1.20/piece
b. Material and labor costs charged to production:
Job No. Units Material Direct labor cost Direct labor hours
001 10,000 P4,000 P6,000 3,000
002 8,800 3,600 5,400 2,700
003 16,000 7,000 9,000 4,500
004 8,000 3,200 4,800 2,400
005 20,000 8,000 3,600 1,800
c. Actual overhead costs inccured during October amounted to P33,500
d. Completed jobs: 001, 002, 003, and 004
e. Sales for a month of October amounted to P105,000. All units produced on Jobs 101,
102, and 103 were sold.
23. What is the balance of the materials inventory account on October 31?
a. 0 b. 4,200 c. 25,800 d. 30,000
24. What is the balance of the work in process inventory account on October 31?
a. 11,600 b. 13,600 c. 16,100 d. 18,100
25. What is the balance of the finished goods inventory account on October 31?
a. 8,000 b. 14,000 c. 20,000 d. 68,000
26. How much is the cost of goods sold for October?
a. 35,000 b. 60,500 c. 54,000 d. 68,000
27. How much is the under-or over-applied overhead for October?
a. 0 b. 2,500 underapplied c. 2,500 overapplied d. 3,500 overapplied