Republic of the Philippines

Commission on Higher Education

Don Honorio Ventura State University
Bacolor, Pampanga

PART II
MIDTERM EXAMINATION
COST ACCOUNTING
1ST SEMESTER, AY 2019-2020

ANSWER KEY
I. MULTIPLE CHOICE

1. A
2. C
3. B
4. B
5. D
6. A
7. C
8. D
9. B
10. C
11. A
12. B
13. C
14. B
15. C
16. B
17. A
18. D
19. C
20. B
21. C
22. B
23. A
24. A
25. A
 II. PROBLEM SOLVING:

TRANSACTION Particulars Debit Credit

A. Materials 820,000
Accounts Payable 820,000

B. Work in Process 720,000

Factory Overhead Control 40,000
Materials 760,000

C. WIP 150,000
FOH-C 220,000
SAE-C 580,000
Payroll 950,000

D. SAE-C 34,000
Accounts Payable 34,000

E. FOH-C 86,000
Accounts Payable 86,000

F. SAE-C 360,000
Accounts Payable 360,000

G. FOH-C 560,000
SAE-C 140,000
Accumulated Depreciation 700,000

H. FOH-C 14,000
SAE-C 6,000
Prepaid Insurance 20,000

I. WIP 960,000
FOH-A 960,000

J. FG 1,800,000
WIP 1,800,000

K. AR 3,000,000
Sales 3,000,000

COGS 1,740,000
FG 1,740,000
SOLUTIONS TO MULTIPLE CHOICE QUESTIONS:

8. Answer: D
Direct materials issued to production P 90,000
Direct labor costs 107,000
Applied factory overhead 113,000
Decrease in ending inventory 20,000
Cost of jobs completed in January P330,000

9. Answer: B
Cost of Jobs completed in February
Job 115: Beginning inventory cost P25,000
Direct labor added 10,000
Factory overhead applied
(10,000 x 20%) 2,000 P37,000
Job 116: Materials added P20,000
Direct labor added 20,000
Factory overhead applied
(40,000 x 20%) 8,000 48,000

Total P85,000
10. Answer: C

Cost of goods sold:

Job 115 Job 116 Job 117 Total
Cost last month P 81,200
Cost this month
Direct materials - P39,000 P 53,000
Direct labor 26,000 45,000 47,000
Factory overhead
120% of DL cost 31,200 54,000 56,400
P138,400 P138,000 P156,400 P432,800

11. Answer: A

Beginning work in process, Job 101 (4,000 + 2,000 + 3,000) P 9,000

Direct materials requisitioned 26,000
Direct labor cost incurred 20,000
Applied factory overhead (150% x 20,000) 30,000
Less: Ending work in process, Job 104
Direct materials P2,800
Direct labor 1,800
Factory overhead (150% x 1,800) 2,700 7,300
Cost of goods sold normal P77,700
Add: Underapplied factory overhead (32,000 – 30,000) 2,000
Cost of goods sold actual P79,700

14. Answer: B

EOQ =

7, 000 =

15. Answer: C

Materials March 1 40, 000

Purchases 180, 000
Total 220,000
Less. DM March 31 50,000
DM used 170,000
DL 120, 000
FOH 108, 000
TMC 398, 000
Add:WIP, March 1 25, 000
Total 423, 000
Less: WIP, March 31 35, 000
COGM 388,000
Add: FG March 1 60,000
TGAS 448, 000
Less: FG March 31 70, 000

COS 378, 000

16. Answer: B

DM used (182, 500 x 90%) 164, 250

DL (242, 500 X 93%) 225, 525
FOH ( 225, 525 X 125%) 281, 906
TMC 671, 681
Add:WIP beg 88, 125
Total 759, 806
Less: WIP end 67, 500

COGM 692, 306

17. Answer: A

4, 000 units/ 2= 2, 000 units

18. Answer: D

DM March 1 36, 000

Purchases 84, 000
Total 120,000
Less. DM March 31 30,000
DM used 90,000
DL 60, 000
FOH (P60, 000/P7.5 X P10) 80, 000
TMC 230, 000
Add:WIP, March 1 18, 000
Total 248, 000
Less: WIP, March 31 12, 000

COGM 236, 000

PC = P90, 000 + P 60, 000

= P150, 000

CC = P60, 000 + P 80, 000

= P 140, 000

19. Answer: D

$360,000 / .30 = 1,200,000 direct labor hours

23. Answer: A

Total manufacturing cost P147,185

Direct materials cost P4,200

Direct labor cost (300 x 8) 2,400
Applied factory overhead (15 x 200 hrs) 3,000
Manufacturing cost P9,600

25. Answer: A

Cost of goods sold P280,000

Add: Finished goods, December 31 90,000
Less: Finished goods, January 1 ( 56,000)
Cost of goods manufactured P314,000
Add: Work in process, December 31 28,000
Less: Work in process, January 1 ( 24,000)
Manufacturing costs P318,000
Less: Direct labor ( 80,000)
Factory overhead ( 70,000)
Direct materials used P168,000
Add: Materials, December 31 48,000
Less: Materials, January 1 ( 34,000)

Materials purchases P182,000