Book 1

 

Step 1: Compue he oal number of actvites for all he producs

Actviy Se Ups Shipmens Engineering Change Orders

Model X

Model Y

Model Z

100 200 15

150 225 10

250 275 5

 

Step 2: Compue for he raes per actviy

Toal = = =

500 700 30

Actviy number of se ups number of shipmens engineering change orders

Se Ups Shipmens Engineering Change Orders

 

Overhead Cos

Divided by

Toal Actvites

P45,000 P70,000 P90,000

/ / /

500 700 30

Raes = = =

P90 P100 P3,000

per se up per shipmen per engineering chan

Step 3: Co

Step 2: Co

 

 

 

ge orders

pue for he overhead cos aribuable o Model X.

Actviy Se Ups Shipmens Engineering Change Orders

Raes Per Actviy P90 P100 P3,000

Multplied by Number of Actviy for Model X x 100 x 200 x 15

= = =

Multplied by Number of Actviy for r14 x 1,080 machine huors x 60 order x 20 inspecton hours

= = =

Toal

 

pue for he overhead cos aribuable o r14

Actviy Cos Pool Assembly Processing Orders Inspecton

Raes Per Actviy P10.81 P35.34 P69.70

Toal 11674.8 2120.4 1394 15189.2 30.9983673469 30.9983673469

 

Toal Overhead for Model X P9,000 P20,000 P45,000 P74,000

Toal Overhead for r14 P11,674.80 P2,120.4 P1,394

Step 4: Compue for he overhead cos per uni of Model X

Toal Overhead Cos for Model X Unis Produced of Model X

Overhead Cos Per Uni of Model X

=

Overhead Cos Per Uni of Model X

=

P74,000 2,000

Overhead Cost Per Unit of Model X

=

P37

P15,189.20

Step 3: Compue for he overhead cos per uni of r14

Toal Overhead Cos for r14 Unis Produced of r14

Overhead Cos Per Uni of r14

=

Overhead Cos Per Uni of r14

=

P15,189.20 490

Overhead Cos Per Uni of r14

=

P30.99836735

or

P31

 

Step 1: Compue for he raes per actviy cos pool

Actviy Cos Pool

Toal Cos Divided by

Toal Actvites

Assembly

P313,490

/

29,000 machine hours

=

Processing Orders Inspecton

P49,476 P73,882

/ /

1,400 orders 1,060 inspecton-hours

= =

 

Raes P10.81

per ma machine ho hour

P35.34 P69.7 9.70

per order per inspecton hour

Step 4: Compue for he average cos per uni of produc R14

Average Cos per Uni of Produc R14

=

Direc Maerial Cos per Uni

Average Cos per Uni of Produc R14

=

P46.42

Average Cost per Unit of Product R14

=

P97.64

97.64

 

+

Direc Labor Cos per Uni

+

Overhead Cos Per Uni

+

P20.22

+

P31.00

 

Sep 1: Compue for he overhead cos aribuable o r14

a. Work i

To rec b. Work i

To rec c. Work

To rec d. Manuf

To rec e. Finish

To rec

 

ACCOUNTS

DEBIT

  n Process Invenory Raw Maerials Invenory rd maerials used for he period.

$

  n Process Invenory Facory Labor rd direc labor for he period.

$

  n Process Invenory Manufacuring Overhead rd applied overhead for he period.

$

acuring Overhead Cash rd manufacuring cos for he period.

$

CREDIT

Computa

62,000 $

62,000

$

85,000

$

80% of Direc Labor 68,000

$

74,000

85,000

68,000

74,000

Direc MaeriaDirec Labor dG W orokoidnsPIrnovceenssoIrnyvenory rd nished goods for he period.

$

13 136,000 $

136,000

ob b1 10 03 1 JJo

24 2,,0 00 00 0 $ 2 $

3 20 0,,0 00 00 0

Toal Finished Goods

Job Job 101 Job 103

 

$ $

Toal Cos Divided by $ 76,000 / $ 60,000 /

ons

Overhead Cos  $ 24,000 =  $ 16,000 =

Toal $ 76,000 $ 60,000

Job 102 Direc Maerials

$

16,000

$ 136,000

Direc Labor

$

35,000

Overhead Cos

$

28,000 80% of Direc Labor

Toal Cos Cos of Job 102

$

79,000

Unis Produced Uni Cos   1,000 = $ 76 200 = $ 300

 

Toal  $ 79,000

Journal a. Journal b. Journal c. Toal Debis Less: Journal e.

$ $ $ $

62,000 85,000 68,000 215,000

$

136,000

Remaining Bal Balance

$

79,000

 

DEBIT Cash

DEBIT

4,500

Accouns Receivable

27,000

Repair supplies Furniures and Ficures Repair equipmen Accouns payable Noes payable

500 10,000 33,100

Rockwell, capial Rockwell, drawing

CREDIT

b h

5,750 25,250 6,000

56,000

CREDIT

c h 900 900 f 500

90 500 2,000 000

d

500

a

500

g

390

a

500

Service income Repair supplies expense Ren expense Salaries expense Utlites expense

135,300 15,000 40,000 60,000 25,000

Toal

221,100

Cash Accouns Receivable Repair supplies Furniures and Ficures Repair equipmen Toal Asses

3,910 26,400 500 9,500 33,100 73,410

Accouns payable Noes payable Toal Liabilites

5,360 25,250 30,610

Service income Less: Repair supplies expense Ren expense Salaries expense Utlites expense Ne Income/(Loss)

Rockwell, capial Less: Rockwell, drawing Ne Loss Ending Capial

 

DEBIT  

CREDIT

3,910 26,400 500 9,500 33,100 5,360 25,250 6,500

56,500

   

222,300

133,300 15,000 40,000 60,500 25,000

140,500 (7,200)

56,500 6,500 7,200

13,700 42,800

f

2,000

e

500

133,300 15,000 40,000 60,500 25,000 220,410

220,410

 

 Debit

Cash Accouns Receivable Noes Receivable Oce Supplies Prepaid Insurance Gym equipmen Fu Furrniu niure ress an and d x xu ure ress Accouns Payable Greenbel, Capial

Credit

329,400 100,000 300,000 15,600

Debit

b.

84 84,000

Service Income

156,300 c. 1,240,000 d. e. 344,400

54,400 80,000 400

Salaries Expense

30,000

f.

4,000

26,400 460,000 12 120, 0,50 500 0

Credit

Ren Expense Taxes and Licenses Advertsing Expense Utlites Expense

43,000 8,600 11,600 9,400

Toal

1,389,500

Service Income Less: Salaries Expense Ren Expense Taxes and Licenses Advertsing Expense Utlites Expense Ne Income

Cash Accouns Receivable Noes Receivable Oce Supplies Prepaid Insurance Gym equipmen Fu Furrniu niure ress an and d x xu ure ress Toal Asses

 

 Debit

Credit

392,400 184,000 300,000 15,600 26,400 460,000 120,500 101,900 1,160,000 340,000 30,000

e. 1,805,700

340,000          

30,000 43,000 8,600 12,000 9,400

392,400 184,000 300,000 15,600 26,400 460,000 12 120, 0,50 500 0 1,498,900

103,000 237,000

400

43,000 8,600 12,000 9,400 1,601,900

1,601,900

 

Step 1: Compue for he Value of 1 righ

Value of 1 righ =

Value of 1 righ =

Marke Value of Share Righ-On - Subcripton Price Number of righs o purchase one share + 1 P125 - P100 4+1

Value of 1 righ =

P25 5

Value of 1 righ =

P5

Step 2: Compue for he oal value of he righs received.

To Toa all Val Value ue of he he Rig Righ hss =

Valu Value e of of 1 ri righ gh x numb number er of ri righ ghs s

Toal Value of he Righs =

P5 x 25,000

Toal Value of he Righs =

P125,000

Step 3: Make he journal enry for he receip of share righs.

Share Righs P125,000 Invesmen in Equiy Securites P125,000 To record receip of righs. Step 4: Compue for he Cash o be paid for he exercise.

Cash o be paid

=

Subscripton Price x

Cash o be paid

=

P100 x

25,000 4

Cash o be paid

=

P100 x

6,250

Cash o be paid

=

P625,000

Toal Number Righs required o p

Step 5: Make he journal enry for he exercise of share righs.

Invesmen in Equiy Securites Cash Share Righs To record exercise of righs.

P750,000 P625,000 P125,000

 

Step 1: Compue for he Value of 1 righ

Value of 1 righ =

Value of 1 righ =

Mark Ma rke e Valu Value e of of SSha hare re Ri Righ gh-On On - Sub Subcr crip ip Number of righs o purchase one s P125 - P100 4

Value of 1 righ =

P25 4

Value of 1 righ =

P6.25

Step 2: Compue for he oal value of he righs received.

To Toa all V Val alue ue of he he Ri Righ ghs s =

Valu Value eo off 1 ri righ gh x numb number er of ri righ gh

Toal Value of h he Righ ghs =

P6.2 6.25 x 25, 25,000 000

Toal Value of he Righs =

P156,250

Step 3: Make he journal enry for he receip of share righs.

Share Righs P156,250 Invesmen in Equiy Securites P156,250 To record receip of righs. Step 4: Compue for he Cash o be paid for he exercise.

 

of Righs urchase 1 share

Cash o be paid

=

Subscripton Price x

Cash o be paid

=

P100 x

25,000 4

Cash o be paid

=

P100 x

6,250

Cash o be paid

=

P625,000

  Righs

Step 5: Make he journal enry for he exercise of share righs.

Invesmen in Equiy Securites Cash Share Righs To record exercise of righs.

 

   

on Price are

P781,250 P625,000 P156,250

 

s

oal Number of Righs   equired o purchase 1 share