dass

Overhedad is applied to producddasdasdashe work in process at April 30 represenasts the coasdst odf Job asdasd 4d56d,
whias has as of P2,400.
adasdAsdasdasdas232

1.

asd
as

c. Pas4,5addds0

ddas

assd.dP4,200

dasdd
2.

Thdde pdasdme as the month amountasddfdto;f

a. P70,dzxcdzx0x00dasdasasdasdfd

c. P120,000

b. P90,x00zxc

d. P145,000

The following as to Matatag Cdasdompany for March 2000asas

asd

March 1

March 31

Materialsdas

dP40,000

P50,000

Work in Process

d25,000

35,000

Finished Goods

60,000

70,000
March 1-31

Direct Labor Cost

P120,000

Factory Overhead applied

108,000

Cost of good sold

378,000

3.

4.

The cost of goods manufactured during March was;

a. P378,000

c. P398,000

b. P388,000

d. P425,000

The amount of materials purchased for the month was:

a. P50,000

c. P180,000

b. P170,000

d. P220,000

Hamilton Company uses a job order costing. Factory overhead is applied to production at a budgeted rate of 150% of
direct labor costs. Any overapplied or underapplied factory overhead is closed to the cost of good sold account at the
end of the month. Additional information is available as follows:
Direct Materials

P4,000

Direct Labor

2,000

Factory overhead applied

3,000
P9,000

Jobs 102,103 and 104 were started during February. Direct materials requisitions for February totaled P26,000. Direct
labor costs of P20,000 were incurred for February. Actual factory overhead was P32,000 for February. The only job still
in process at he end of February was Job No 104, with costs of P2,800 for direct materials and P1,800 for direct labor

5.

The cost of goods manufactured for February was :

a. P77,700

c. P79,700

b. P78,000

d. P85,000

During March , Marc Company incurred the following costs on Job 209 for the manufacture of 200 motors:
Original cost accumulation:
Direct materials

P660

Direct Labor

800

Factory overhead (150% of DLC)

1,200
P2,660

Direct costs of reworking 10 units:

Direct materials

P100

Direct Labor

160
P260

Method A The rework cost were attributable to the exacting specifications of Job 209, and the full rework costs were
charged to this specific job.
Method B The defective units fall within the normal range and the rework is not related to a specific job, or the
rework is common to all the jobs.

6.

The cost per finished unit of Job 209 using method A is:
a. P15.60

c. P15.80

b. P13.30

d. P13.50

7.

The cost per finished unit of Job 209 using method B is:
a. P13.30

c. P15.80

b. P15.80

d. P13.60

Rumors Company applies factory overhead as follows:

Factory Overhead Rate
Fabricating Department

P7.75 per machine hour

Spreading Department

15.10 per machine hour

Gossiping Department

2.125 per machine hour

Actual machine hours are: 19,000 hours for fabricating; 27,500 hours for spreading and 5,500 hours for gossiping
8.

If the actual factory overhead cost for the period is P574,375, how much is over(under) applied factory overhead?
a. (P11,875.00)

c. (P187.50)

b. (P23,562.50)

d. (P76,125.00)

DMF Manufacturing Company uses a job order costing system and a predetermined overhead rate based on machine
hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be P120,000
and the machine hours used would be 8,000.

The following information pertain to June of the current year:

Job A

Job B

Job C

Work in process, June 1

P8,000

P13,000

P19,000

Materials requisitioned

2,000

2,400

3,600

Direct labor costs

1,200

1,800

2,000

Machine hours

400

700

900

Actual manufacturing costs incurred were P29,000. At the end of June, Job B was sold at 60% above cost.

9.

10.

The total costs associated to Job A is

a. P35,200

c. P11,200

b. P17,200

d. P40,200

The billing price for Job B is

a. P44,320

c. P31,580

b. P94,720

d. P46,200

The following information was taken from the records of the Uganda Corporation for the month of June 2002. (There
were no inventories of work in process or finished goods on June 1)

Sales during the month

Units

Costs

8,000

P?

Manufacturing costs for month:

Direct Materials

P32,000

Direct Labor

20,000

Overhead costs applied

15,000

Overhead costs underapplied

Inventories, June 30:

800

Work in process

1,000

P?

Finished goods

2,000

Indirect manufacturing costs are applied on a direct labor costs basis. The underapplied balance is due to seasonal
variations and will be carried forward. The following cost estimates have been submitted for the work in process
inventory of June 30; materials P3,000; direct labor P2,000; overhead P1,500.

11.

12.

13.

The no of units that were completed and transferred to finished goods during the month was
a. P8,000

c. P10,000

b. P6,000

d. P11,000

The actual overhead for the month is

a. P15,000

c. P14,200

b. P15,800

d. answer not given

The manufacturing cost per unit is

a. P6.05

c. P11.09

b. P8.375

d. P4.84

Hull Machine Shop is a manufacturer of aircraft parts. Five aircraft parts out of job lot of 50 aircraft parts are spoiled.
Costs assigned prior to the inspection point are P2,000 per part. The current disposal price of the spoiled parts is
estimated to be P600 per part

14.

If the spoilage is normal and attributable to a specific job, the unit cost of the good units is
a. P2,000

c. P600

b. P2,155

d. P1,400

15.

16.

17

If the spoilage is normal common to all jobs, the unit cost of the good units is
a. P2,000

c. P600

b. P2,155

d. P1,400

If the spoilage is abnormal, the amount chargeable to Loss from spoilage account is
a. P3,000

c. P7,000

b. P10,000

d. P0

Consider Hull Machine Shop above, if the 5 aircraft pars are defective, normal and attributable to specific job and
it requires the following cost to rework the units: Materials of P800, Labor of P2,000 and Overhead of P1,000.
The entry to record the cost of rework is:
a.

b.

c.

Manufacturing Overhead Control

3,800

Materials

800

Wages Payable

2,000

Manufacturing Overhead Applied

1,000

Loss from rework

3,800

Materials

800

Wages Payable

2,000

Manufacturing Overhead Applied

1,000

Work in Process
Materials

3,800
800

d.

18.

Wages payable

2,000

Manufacturing Overhead applied

1,000

Work in Process

3,800

Materials

800

Wages payable

2,000

Manufacturing Overhead Control

1,000

Consider data in No 14, except that the rework is normal and common to all jobs, the entry to record the cost of
reworked is:
a.

b.

c.

Manufacturing Overhead Control

3,800

Materials

800

Wages Payable

2,000

Manufacturing Overhead Applied

1,000

Loss from rework

3,800

Materials

800

Wages Payable

2,000

Manufacturing Overhead Applied

1,000

Work in Process
Materials

3,800
800

d.

Wages payable

2,000

Manufacturing Overhead applied

1,000

Work in Process

3,800

Materials

800

Wages payable

2,000

Manufacturing Overhead Control

1,000

Fred Company employs a job order costing system. Only three jobs, #105, #106, and #107 were worked during
November and December 2001. Job#105 was completed December 10; the other two jobs were still in production on
December 31, the end of the companys operating year. Job cost sheets on the three job follows:
#105

#106

#107

Direct Materials

P16,500

P9,300

Direct Labor

13,000

7,000

Factory Overhead

20,800

11,200

P-

P8,200

P21,300

4,000

6,000

10,000

November costs:

December costs;
Direct Materials
Direct Labor
Factory Overhead

The following additional information is available:

Manufacturing overhead is assigned to jobs on the basis of direct labor cost
Indirect materials used during December totaled P4,000
Indirect labor cost for December totaled P8,000
Various manufacturing overhead incurred during December was P19,000
Balances in the inventory accounts at November 30 were as follows:

19.

20.

21.

Raw Materials

P40,000

Work in Process

Finished Goods

85,000

The predetermined overhead rate used to assigned overhead costs to jobs is

a. 60% of DL cost

c. 160% of DL cost

b. 62.50% of DL cost

d. 60% of DM cost

The total overhead costs applied during December is

a. P12,500

c. P32,000

b. P12,000

d. P31,000

The entry to record overhead charged to production is

a.

Work in process
Manufacturing Overhead Control

31,000
31,000

b.

c.

Work in process

31,000

Materials

4,000

Wages Payable

8,000

Various Account

19,000

Work in Process

32,000

Manufacturing Overhead Control

d.

Work in Process
Manufacturing Overhead Control

22.

23.

24.

32,000

32,000
32,000

The cost of goods manufactured for the period is

a. P56,700

c. P58,300

b. P54,300

d. P55,000

The balance of the work in process on December 31 is

a. P27,500

c. P32,000

b. P23,800

d. P73,000

The total amount debited to work in process account for December is

a. P81,500

c. P61,500

b. P49,500

d. P80,500

25.

The overhead resulted to a variance of

a. P3,000 underapplied

c. P19,000 underapplied

b. P3,000 overapplied

d. P19,000 overapplied

PROCESS COSTING

Weighted Average Costing

The following data for te month of September were taken from the cost records of Department A of NLP which
uses average costing:
Opening inventory of work in process
Units (all materials and 50% converted)

500

Costs Materials

P2,400

Labor

1,,500

Factory Overhead

760

Put into Production:

Units

5,000

Costs Materials

P25,100

Labor

19,380

Factory Overhead

14,900

Completed and transferred

4,800 units

Ending inventory of work in process

Units (all materials and 60% converted)

1.

2.

700

The equivalent unit of production for labor is

a. 7,200

c. 4,970

b. 5,220

d. none of the given

The unit cost of material for the month is

a. P5.00

c. P4.00

b. P5.50

d. none of the given

Cost and statistics for Dept B of a company manufacturing a single product in three department follow:
Work in Process, October 1
Cost in Dept A

P11,380

Cost in Dept B
Costs Materials

None

Labor

P 500

Factory Overhead

50

Cost added in Dept B in October

Costs Materials

None

Labor

P13, 000

Factory Overhead

450

Units in Process, October 1(60% converted)

500

Units received from Dept A at P2.60/unit

6,700

Units completed and transferred

6,800

Units in Process, October 31 (50% converted)

400

The company uses average costing method

3.

4.

The equivalent production for labor was

a. 7,200

c. 6,800

b. 7,000

d. none of the given

The conversion costs per unit in Dept B was

a. P2.00

c. P5.00

b. P6.00

d. none of the given

Materials are added at the start of the process in Cedar Companys department, the first stage of the production
cycle. The following information is available for the month of July:
Work in Process, July 1 (60% converted)

60,000 units

Started in July

150,000

Transferred to next department

110,000

Lost in Production

30,000

Work in Process, July 31 (50% converted)

70,000

Under Cedar Companys cost accounting system, the costs incurred on the lost units are absorbed by the
remaining good units
5.

Using the weighted average method, what are the equivalent units for the materials?
a. 120,000

c. 180,000

b. 145,000

d. 210,000

SSS Corporations production cycle starts in the Mixing Department. The following information is available for
the month of April:
Work in Process, April 1 (50% converted)

40,000 units

Started in April

240,000

Work in Process, April 30 (60% converted)

25,000

Materials are added in the beginning of the process.

6.

Using the weighted average method , what are the equivalent units of production for the month of April?
Materials

Conversion

a. 240,000

250,000

b. 255,000

255,000

c. 270,000

270,000

d. 280,000

270,000

Roy Company manufactures product X in two stage production cycle in Dept A and B. Materials are added at the
beginning of the process in Dept B. Roy uses the weighted average method. Conversion costs for Dept B were
50% complete as to the 6,000 units in the beginning WIP and 75% complete as to the 8,000 units in the ending
WIP. 12,000 units were completed and transferred out . An analysis of the costs relating to work in process and
production activity in Dept B for February is as follows:

7.

Trans in

Materials

Conversion

WIP, February 1

P12,000

P2,500

P1,000

February cost added

29,000

5,500

5,000

The total cost per equivalent unit transferred out for February of Product X (rounded to the nearest centavo)
a. P2.75

c. P2.82

b. P2.78

d. P2.85

The Wiring Dept is the second stage of Fern Companys production cycle. On May 1, the beginning work in
process contained 25,000 units which were 60% complete as to conversion costs. During May, 100,000 units
were transferred in from stage one of Ferns production cycle. On May 31, the ending work in process contained
20,000 units which were 80% complete as to conversion costs. Material costs are added at the end of the process.
8.

Using the weighted average method, equivalent units were:

Trans in

Materials

Conversion

a.

100,000

125,000

100,000

b.

125,000

105,000

105,000

c.

125,000

105,000

121,000

d.

125,000

125,000

121,000

Lucas Co adds materials in the beginning of the process in the Forming Dept., which is the first of two stages of
its production cycle. Information concerning the materials used in the Forming Dept in October are as follows:

9.

Units

Costs

Work in Process, October 1

6,000

P3,000

Units started in October

50,000

25,560

Units completed and transferred out

44,000

Using the weighted average method, what was the material cost of work in process at October 31?
a. P3,000

c. P6,000

b. P5,520

d. P6,120

Information concerning Dept B of the Dovinlen Co is as follows:

Units

Costs

Beginning work in process

5,000

P6,300

Units transferred in

35,000

58,000

Units completed

37,000

Costs
Trans in

Materials

Conversion

Beginning WIP

P2,900

P-0-

P3,400

Units transferred in

17,500

25,500

15,000

Conversion costs were 20% complete as to beginning work in process and 40% complete as to the ending work
in process. All materials are added at the end of the process. Toby uses average method.
10.

11.

The cost per equivalent unit for conversion costs is

a. P0.44

c. P0.48

b. P0.46

d. P0.50

The portion of the total cost of ending WIP attributable to the transferred in costs
a. P-0-

c. P1,530

b. P1,500

d. P1,650

FIFO Costing

1.. Lisa Co. makes fabric-covered hatboxes. The company began August with 500 boxes in process that
were 100 percent complete as to cardboard, 80 percent complete as to cloth, and 60 percent
complete as to conversion costs. During the month, 3,300 boxes were started. On August 31, 350
boxes were in process (100 percent complete as to cardboard, 70 percent complete as to cloth, and
55 percent complete as to conversion costs). Using the FIFO method, what are equivalent units for
cloth?

a. 3,450
b. 3,295
c. 3,395
d. 3,595

Forte Co. has the following information for May:

Beginning Work in Process Inventory

(70% complete as to conversion) 6,000 units
Started 24,000 units
Ending Work in Process Inventory
(10% complete as to conversion) 8,500 units

Beginning WIP Inventory Costs:

Material P23,400
Conversion 50,607

Current Period Costs:

Material P31,500
Conversion 76,956

All material is added at the start of the process and all finished products are transferred out.

2. How many units were transferred out in May?

a. 15,500
b. 18,000
c. 21,500
d. 24,000

3. Assume that weighted average process costing is used. What is the cost per equivalent unit for material?
a. P1.83
b. P1.05
c. P0.55
d. P1.31

4. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion?
a. P7.03
b. P3.44
c. P4.24
d. P5.71

The December 25th Co. makes wreaths in two departments: Forming and Decorating. Forming began the
month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete
as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths
that were still in process that were 100 percent complete as to material and 50 percent complete as to
conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming
Department are as follows:

Beginning Work in Process Costs:

Material P1,000
Conversion 1,500

Current Costs:
Material P3,200
Conversion 5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent
complete as to material and 90 percent complete as to conversion. The department had 300 units in ending
Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.
Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:

Transferred In P1,170
Material 4,320
Conversion 6,210

Current Period:
Transferred In ?
Material P67,745
Conversion 95,820
5. How many units were transferred to Decorating during the month?
a. 7,000
b. 600
c. 4,900
d. 5,950

6. What was the cost transferred out of Forming during the month?
a. P6,419
b. P5,341

c. P8,330
d. P8,245

BCW Co. adds material at the start to its production process and has the following information available for
November:

Beginning Work in Process Inventory

(40% complete as to conversion) 7,000 units
Started this period 32,000 units
Ending Work in Process Inventory
(25% complete as to conversion) 2,500 units
Transferred out ?

7. Compute the number of units started and completed in November.

a. 29,500
b. 39,000
c. 36,500
d. 34,500

8. Calculate equivalent units of production for material using FIFO.

a. 36,800
b. 32,000
c. 39,000
d. 37,125

9. Calculate equivalent units of production for conversion using FIFO.

a. 34,325
b. 30,125
c. 37,125
d. 39,000

10. Calculate equivalent units of production for material using weighted average.
a. 34,325
b. 32,000
c. 37,125
d. 39,000

11. Calculate equivalent units of production for conversion using weighted average.
a. 39,925
b. 37,125
c. 34,325
d. 38,375

Storey Co. adds material at the start of production. February information for the company follows:

Beginning Work in Process Inventory

(45% complete as to conversion) 10,000 units
Started this period 120,000 units
Ending Work in Process Inventory
(80% complete as to conversion) 8,200 units
Beginning Work in Process Inventory Costs:

Material P24,500
Conversion 68,905
Current Period Costs:
Material P 75,600
Conversion 130,053

12. How many units must be accounted for?

a. 128,200
b. 138,200
c. 130,000
d. 118,200

13. How many units were started and completed in the period?
a. 120,000
b. 111,800
c. 121,800
d. 130,000

14. What are the equivalent units for material using the weighted average method?
a. 120,000
b. 128,360
c. 130,000
d. 123,860

15. What are the equivalent units for material using the FIFO method?
a. 130,000
b. 125,500
c. 111,800
d. 120,000