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Chapter-3

Medicare Claims Processing Manual

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Medicare Claims Processing Manual


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Chapter 3

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Description

CHAPTER 3

C Problem 2

January 1 Purchases Total available for use Less> Materials,

December 31 Direct labor Factory overhead Total manufacturing costs Work in process,

January 1 Cost of goods put into process Less: Work in process,

December 31 Cost of goods manufactured Finished goods,

January 1 Total goods available for sale Less: Finished goods,

December 31 Cost of goods sold

Problem 3 – Donna Company ( Cost of goods sold should P 550,000) Donna Company Cost of Goods Sold Statement For the month of May,

May 1 Purchases Total available Less> Material

May 1 Cost of goods put into process Less: Work in process,

May 31 Cost of goods manufactured Finished goods – May 1 Total goods available for sale Less: Finished goods – May 31 Cost of goods sold Problem 4

Entries a

Materials Accounts payable b

Payroll Withholding taxes payable SSS Premiums payable Phil Health contributions payable Pag-ibig funds contributions payable Accrued payroll Work in process Factory overhead control Payroll c

Materials Accounts payable d

Factory overhead control SSS premiums payable Phil Health contributions payable Pag-ibig funds contributions payable e

Work in process Factory overhead control Materials

Accounts payable Materials

Accounts payable Accrued payroll Cash

Factory overhead control Miscellaneous accounts

Work in process Factory OH Applied (56,000 x 120%)

Finished goods Work in process

Accounts receivable Sales

Cost of goods sold Finished goods

Statement of cost of goods sold

Direct materials used Purchases Less: Purchase returns Total available for use Less: Ind

October 31 Cost of goods manufactured Less: Finished goods – March 31 Cost of goods sold,

normal Less: OA-FO Cost of goods sold,

actual Actual factory overhead (FO Control ) Less: Applied factory overhead Over applied factory overhead Problem 5 – Darvin Company 1

Entries a

Materials Accounts payable b

FOControl Accounts payable

60,495 72

Payroll W/Taxes payable SSS Premium payable Phil Health contributions payable PFC payable Accrued payroll Work in process Factory Overhead control Selling expense control Adm

Accrued payroll Cash

175,000

FO Control Selling expense control Adm

Expense control SSS prem

Payable MC payable PFC payable

175,000

Work in process FO Control Materials

Work in process FO Applied (140,000x80%)

112,000

Finished goods Work in process

410,000

Accounts receivable Sales

539,000

Costs of goods sold Finished goods

385,000

Accounts receivable k

Accounts payable Cash

Cost of goods sold statement Direct materials used Materials,

January 1 Purchases Total available Less> Mat

Materials Direct labor Factory overhead Total manufacturing costs Work in process,

January 1 Cost of goods put into process Less: Work in process,

January 31 Cost of goods manufactured Finished goods – January 1 Total goods available for sale Less: Finished goods – January 31 Cost of goods sold

Income Statement Sales Less: Cost of goods sold Gross profit Less: Operating expenses Selling Administrative Net income 4 Balance sheet Cash Accounts receivable Finished goods Work in process Materials

000 30,000

Problem 6

Income Statement Sales Less: Cost of goods sold Gross profit Less: Operating expenses Marketing Administrative Net income

Accounts payable Accrued payroll W/tax payable SSS Prem

payable PFC payable Common stock Retained earnings

Cost of goods sold statement Direct materials used Materials,

March 1 Purchases Total available Less> Mat

March 1 Cost of goods put into process Less: Work in process,

March 31 Cost of goods manufactured Finished goods – March 1 Total goods available for sale Less: Finished goods – March 31 Cost of goods sold Problem 7 1

Cost of goods manufactured Work in process,

December 31 Cost of goods put into process Total manufacturing costs Work in process,

January 1

Cost of goods manufactured Finished goods,

January 1 Total goods available for sale Cost of goods sold Finished goods,

December 31

Direct materials used Materials,

December 31 Total available for sale Materials,

January 1 Materials purchased

Problem 8 – Madelyn Company 1

The company is using job order costing because the it is manufacturing a unique and custom made furniture 2

Manufacturing is allocated based on the direct labor cost incurred Factory overhead rate

Actual factory overhead ( 500,000 + 750,000+1,000,000+11,000,000+2,000,000) 22,000,000 Applied ( 20,000,000 x 120%) 24,000,000 Overapplied overhead ( 2,000,000)

Direct materials used Direct labor Factory overhead applied Total manufacturing cost Work in process,

January 1 Work in process,

December 31 Cost of goods manufactured Finished goods,

January 1 Finished goods,

December 31 Cost of goods sold – normal Problem 9

Purchases Increase in raw materials inventory Direct materials used Direct labor Factory overhead Total manufacturing cost Decrease in work in process inventory Cost of goods manufactured Decrease in finished goods inventory Cost of goods sold

Cost per unit manufactured (593,500/10,000 units)

Sales Less – Cost of goods sold Gross profit

Problem 10 – Janice Company 1,

Sales (50,000/10%) Selling & administrative expenses Net income Cost of goods sold

Cost of goods sold Finished goods,

March 31 Finished goods,

March 1 Cost of goods manufactured

Cost of goods manufactured Work in process,

March 31 Work in process,

March 1 Total manufacturing costs Factory overhead Direct labor (126,000/75%) Direct materials used Materials,

March 31 Purchases Materials,

March 1

Problem 11

Direct materials requested (used) Materials inventory,

Direct labor cost (53,200/80%)

Cost of goods sold Finished goods inventory,

Cost of goods completed

Direct materials Direct labor Factory overhead applied Total manufacturing costs Work In process inventory,

Cost of goods put in to process Cost of goods completed Work in process inventory,

Materials inventory,

beg Work in process inventory,

Finished goods inventory,

Materials inventory,

Purchases Materials inventory,

end Materials requested (used)

Factory applied (72,250 x 80%)

Cost of goods completed Finished goods inventory,

Finished goods inventory,

Direct materials inventory used Direct labor Factory overhead applied Total manufacturing cost Work in process,

Cost of goods completed Work in process inventory,

93,080 72

Problem 12 – Ravena Compny Materials Inventory________ Bal

Work in Process Inventory Bal

Finished Goods Inventory_____ Bal

Factory Overhead Applied______ d) 64,532

Accounts Receivable________ 320,000

Payroll Payable_________ c) 49,640

Sales________________ f) 320,000 2

Direct materials used Direct labor Factory overhead applied WP inventory,

Cost of goods put into process Less: WP inventory,

end DM DL FO Cost of goods completed

Cost of goods sold (320,000/175%)

Cost of goods sold________ 182,857 76,190 49,640 64,532 15,112 205,474 6,680 6

970 7,761

960 1,248

Product unit cost (5,610/1,200) Job

Product unit cost (9,735/900)

Multiple choice THEORIES 1

C 8 C 9

PROBLEMS 1

970,000 3

B C C D'B B B B B D

A B B B A D'D B A A