RCA SAMPLE EXAMS SOLUTIONS

1.
(1)
Quantity schedule:
Units received from Department A

20,000

Units transferred to finished goods

Units still in process (all materials, 60%
conversion cost)

15,000
5,000

20,000

Transferred in
from Dept. A
Materials
Conversion
15,000
15,000
15,000
5,000
5,000
3,000
20,000
20,000
18,000

Equivalent production:
Transferred to finished goods
Ending inventories

(2)
Cost per equivalent unit for conversion cost:
P9000/ 18,000= P.50 per unit
2.
KRAKER COMPANY
Cost of Production Report
For January, 19Quantity Schedule:
Units started in process

10,000

Units transferred to finished goods

Units still in process (95% conversion cost
, all material A and B)
Normal spoilage (5% x 9,000) (90%
conversion cost, all material A)
Abnomal spoilage (1,000 - 450) (90%
conversion cost, all material A)
Cost charged to the department:
Cost added by department:
Material A
Material B
Labor
Factory overhead
Total cost o be accounted for
Cost Accounted for as Follows:

7,000
2,000
450
550

Total cost

10,000

Unit cost
P13,370
4,500
37,580
46,975

P1.40
0.5
4
5

Transferred to finished goods (7,000 x P10.90)

Transferred to factory overhead:
Materials A (550 x P1.4)
Labor (495 x P4)
Factory overhead (495 x P5)
Work in process---ending inventory:
Materials A (2,000 x P1.4)
Materials B (2,000 x P.50)
Labor (2,000 x .95 x P4)
Factory overhead (1,900 x P5)
Total cost accounted for

P76,300
P770
1,980
2,475
P2,800
1,000
7,600
9,500

5,225

20,900
P102,425

Additional Computation:
Equivalent Production; Material A = 7,000 + 2,000 + 550= 9,550 units
Material B = 7,000 + 2,000= 9,000 units
Labor and actory overhead = 7,000 + (2,000 x .95) +
(550 x .90)= 9,395 units
Unit costs:Material A = P13,370/9,550 = P1.4 per unit
Material B = P4,500/9,000 = P.50 per unit
Labor = P37,580/9,395 = P4 per unit
Factory overhead = P46,975/9,395 = P5 per unit
3.
(1) Average Costing:

(a) Transferred out

Add ending inventory (work this period)
Equivalent production

Materials
units
12,000
2,400
14,400

Labor and Factory

overhead units
12,000
1,200
13,200

(b) Transferred out

Completed and on hand
Add ending inventory(work this period)
Equivalent production

7,500
700
1,000
9,200

7,500
700
400
8,600

(c) Transferred out

Add ending inventory (work this period)
Equivalent production

20,000
2,500
22,500

20,000
1,250
21,250

(2) Fifo Costing

(a) Transferred out

Less beginning inventory(all units)
Started and finished this period
Add beginning inventory(work this period)
Add ending inentory(work this period)
Equivalent production
(b) Transferred out
Less beginning inventory(all units)
Started and finished this period
Completed and on hand
Add ending inentory(work this period)
Equivalent production
(c) Transferred out
Less beginning inventory(all units)
Started and finished this period
Add beginning inventory(work this period)
Add ending inentory(work this period)
Equivalent production

Materials
Units
12,000
6,600
5,400
4,400
2,400
12,200

Labor and Factory

Overhead Units
12,000
6,600
5,400
4,400
1,200
11,000

7,500
0
7,500
700
1,000
9,200

7,500
0
7,500
700
400
8,600

20,000
2,000
18,000
1000
2,500
21,500

20,000
2,000
18,000
1600
1,250
20,850

4.
(1)
Work in process
Materials
Work in process
Payroll
Factory overhead control
Materials, payroll, accruals, and various credits
Work in process
Applied factory overhead
Applied factory overhead
Factory overhead control
Overhead rate;
Estimated factory overhead / Estimated production
P570,000/30,000 = P19 per mixer

1,160,000
1,600,000
928,000
928,000
559,600
559,600
551,000
551,000
551,000
551,000

(2)
Underapplied factory overhead: P559,600 - P551,000 = P8,600
Factory overhead Subsidiary Ledger
General Ledger
General factory
Machining Painting Assembly Cost pool
Debit
Credit
(a) Factory overhead Control
750.00
300.00
300.00
150.00
1,500.00
Accumulated depr.---Buildings
1,500.00
(b) Factory ovehead control
6,000.00 2,000.00
1,200.00
400.00
9,600.00
Accumulated depr.---Machinery
9,600.00
(c) Factory ovehead control
550.00
203.33
170.00
76.67
1,000.00
Accrued Property Tax Payable
1,000.00
(d) Factory ovehead control
450.00
180.00
160.00
60.00
850.00
Accrued Workmen's compensation
850.00
(e) Factory ovehead control
600.00
60.00
90.00
750.00
Accrued Power Overhead
750.00
(f) Factory ovehead control
450.00
180.00
180.00
90.00
900.00
Accounts Payable
900.00
(g) Factory ovehead control
1,800.00
2,300.00
410.00
4,510.00
Materials
4,510.00

5.
(a) Perpetual inventory records and the average costing method
Average cost
January 1. Beginning balance 2,000 units @ P9.775= P19,550
6. Received
1,500 units @ P10.3 = 15,450
Balance
3,500 units
35,000
P10
7. Issued
1,800 units @ P10 =
18,000
Balance
1,700 units
17,000
10.00
26. Received
3,400 units @ P10.75 = 36,550
Balance
5,100 units
53,550
10.50
31 Issued
3,200 units @ 10.50 =
33,600
Balance
1,900 units
P19,950
10.50
Cost of Materials used:

18000
33,600

51600

6.
(1)
Work in Process (P8.4 x 52)
Factory overhead control[(P8.4 x 1/2) x (52-40)]
Payroll
(2)
Work in Process

436.80
80.4
487.2

487.20
Payroll

487.20

7.
BOSQUE BROTHERS
Budget f Sales Revenue and Gross Profit
For the year 19B
Average
Cost of
Gross
Sales
sales price
Goods Sold
Profit
Sales
Gross
Products (in pounds)
per pound
per Pound
per Pound
Revenue
Profit
Barb
20,000 P
37.00 P
28.00 P
9.00 P 740,000 P 180,000
Shir
10,500
18.72
18.00
0.72
196,560
7,560
Bett
7,500
23.92
23.10
0.82
179,400
6,150
38,000.00

P 1,115,960 P

193,710