# Solution Manual

Topics: Variable cost, Costs, Cost Pages: 5 (473 words) Published: January 18, 2013
CHAPTER 3
COSTS CONCEPTS and CLASSIFICATION

[Problem 1]
1.Direct laborP10
Unit conversion costP31

2.Direct materialsP32
Direct labor 10
Unit prime costP42

3.Unit prime costP42
Unit variable costP57

4.Total production cost (12,000 units x P63) P756,000

[Problem 2]
1.Indirect materials and factory suppliesP 68,000
Supervising salaries 90,000
Repairs and maintenance 40,000
Heat, light and power 28,000Overtime premium – plant worker 20,000
Fringe benefits for plant worker 15,000
Depreciation – plant 190,000
Insurance – plant 22,000

2.Applied factory overhead (71,000DLH x P7.50) = P532,500

statement of cost of goods manufacturedP473,000

[Problem 3]
1. Unit cost == P4.35

2. Cost of goods sold = 360,000 units x P4.35 = P1,566,000

3. Inventory – Aug. 31 = 40,000 units x P4.35 = P174,000

[Problem 4]
| | | | |Dep| | | | | | | |art| | | | | | | |men| | | | | | | |t A| | | | | (P250,000 x 120 / 400) | | |75,| | | | | | | |000| | | | | | | | | | | | |Dep| | | | | | | |rec| | | | | | | |iat| | | | | | | |ion| | | | | | | |for| | | | | | | |mac| | | | | | | |hin| | | | | | | |ery| | | | | |

3.

4.

[Problem 6]
|Cost Item | |Direct (D) or |Variable (V) | | | |Indirect(I) | | |or Fixed (F) | |a | |D | | |V | |b | |I | | |F | |c | |I | | |F | |d | |D | | |V | |e | |I | | |F | |f | |I | | |V | |g | |I | | |F | |h | |D | | |F | |I | |I | | |F |

[Problem 7]
|Cost Item | |Direct (D) or | |Variable (V) | | | |Indirect(I) | | |or Fixed (F) | |a | |D | | |V | |b | |D | | |V | |c | |D | | |F | |d | |D | | |F | |e...