COST ACCOUNTING QUESTIONS (DIFFICULTY: EASY)

1
The following costs are for Fidel Manufacturing, a manufacturer of labels used in the
packaging of a variety of products. Classify the costs as one of the four options by
placing the letter of the best answer in the space provided.
A
B
C
D

Direct materials cost

Direct labor cost
Manufacturing overhead cost
Selling and administrative cost

1. Ink used in printing labels.

2. Salary of the corporate controller.
3. Depreciation on the factory overhead.
4. Rent on finished goods warehouse.
5. Paper for labels.
6. Wages paid to machine operator.
7. Insurance on manufacturing facilities.
8. Income tax expense.
9. Cost of electricity to operate factory machinery.
10.Boxes used to ship finished labels.
11.Advertising.
12.Salespersons commissions.
13.Vacation pay for factory employees.
14.Salary of production foreman.
15.Depreciation on delivery truck.
2
Anaconda Manufacturing had no beginning inventories. During the period, its
completed production was 50,000 units of which 10% was unsold. There were no
ending inventories of materials or work-in-process. Materials purchased and used
were P215,000; direct labor and manufacturing overhead were P160,000.
Required: Compute for the ending inventory and cost of goods sold

3
The following data were taken from Sexy Back Company for 200A:

Raw materials purchased

300,000
Direct labor payroll
150,000
Indirect labor
50,000
Taxes and Depreciation
Factory building
25,000
Taxes and Depreciation
Salesroom and office
20,000
Salesmens salaries
40,000
Office salaries
30,000
Utilities(60% factory)
50,000
Freight-out
30,000
Increase in raw materials inventory
15,000
Decrease in goods-in-process inventory
10,000
Decrease in finished goods inventory
25,000
1. What is the cost of goods sold?
a. P550,000
b. P575,000
c. P525,000
d. P595,000
2. What is the total manufacturing cost?
a. P550,000
b. P540,000
c. P560,000
d. P570,000
3. What is the cost of goods manufactured?
a. P540,000
b. P565,000
c. P550,000
d. P575,000