Professional Documents
Culture Documents
The work in process account of the Malinta Company which uses a job order cost system follows: Work in Process
FO applied 30,000
Overhead is applied to production at a predetermined rate, based on direct labor cost. The work in process at April 30
represents the cost of Job No 456, which has been charged with direct labor cost of P3,000 and Job No 789, which has
been charged with applied overhead of P2,400.
1. The cost of direct materials charged to Job No. 456 and 789 amounted:
a. P8,700 c. P4,500
b. P7,600 d. P4,200
a. P70,000 c. P120,000
b. P90,000 d. P145,000
The following cost data pertain to Matatag Company for March 2000
March 1 March 31
March 1-31
a. P378,000 c. P398,000
b. P388,000 d. P425,000
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:
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
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:
P2,660
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
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.
Actual manufacturing costs incurred were P29,000. At the end of June, Job B was sold at 60% above cost.
a. P35,200 c. P11,200
b. P17,200 d. P40,200
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)
Units Costs
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. 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
a. P15,000 c. P14,200
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. 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
16. 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
17 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:
Materials 800
Materials 800
Materials 800
Materials 800
18. 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:
Materials 800
Materials 800
Materials 800
Materials 800
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 company’s operating year. Job cost sheets on the three job follows:
November costs:
Direct Materials P16,500 P9,300 -
December costs;
Factory Overhead ? ? ?
Work in Process ?
19. The predetermined overhead rate used to assigned overhead costs to jobs is
a. P12,500 c. P32,000
b. P12,000 d. P31,000
Materials 4,000
a. P56,700 c. P58,300
b. P54,300 d. P55,000
a. P27,500 c. P32,000
b. P23,800 d. P73,000
24. The total amount debited to work in process account for December is
a. P81,500 c. P61,500
b. P49,500 d. P80,500
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:
Labor 1,,500
Units 5,000
Labor 19,380
a. 7,200 c. 4,970
Cost and statistics for Dept B of a company manufacturing a single product in three department follow:
Cost in Dept B
Labor P 500
Factory Overhead 50
a. P2.00 c. P5.00
Materials are added at the start of the process in Cedar Company’s department, the first stage of the production
cycle. The following information is available for the month of July:
Under Cedar Company’s 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 Corporation’s production cycle starts in the Mixing Department. The following information is available for
the month of April:
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. 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 Company’s 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 Fern’s 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.
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:
Units Costs
9. 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
Units Costs
Beginning work in process 5,000 P6,300
Costs
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.
a. P0.44 c. P0.48
b. P0.46 d. P0.50
11. 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
Conversion 50,607
Material P31,500
Conversion 76,956
All material is added at the start of the process and all finished products are transferred out.
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:
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:
Transferred In P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P67,745
Conversion 95,820
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:
Transferred out ?
a. 29,500
b. 39,000
c. 36,500
d. 34,500
a. 36,800
b. 32,000
c. 39,000
d. 37,125
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:
Material P24,500
Conversion 68,905
Material P 75,600
Conversion 130,053
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