COST ACCOUNTING

QUIZ

Name: SHIRLEY L. ESAGA Date: 3/23/2020

Year/Section: BSA-3

1. Adam Company is a graphic design shop that produces jobs to customer specifications. During January, Job #3051
was worked on and the following information is available:

Direct material used $2,500

Direct labor hours worked 15
Machine time used 6
Direct labor rate per hour $7
Overhead application rate per hour of machine time $18

Required: Compute for the total cost of Job #3051 for January?

Direct Materials $ 2,500

Direct Labor (15 hours * $7/hour) 105
Factory Overhead (6 hrs machine time * * $18/machhr) 108
Total cost $ 2,713

2. Britney Company has unit costs of P10 for materials and P30 for conversion costs. There are 2,500 units in ending work in
process, 40% complete as to conversion costs, and fully complete as to materials cost. Compute for the total cost
assignable to the ending work in process inventory.

2,500 units ewp X 10 (unit cost for materials) P 25,000

2,500 units ewp X 30 (for conversion cost) X .40 30,000
P 55,000

3. Catridge Company has no beginning work in process; 9,000 units are transferred out and 3,000 units in ending work in
process are one-third finished as to conversion costs and fully complete as to materials costs. Total materials cost is
P60,00. Compute for the equivalent units for materials and the material unit cost.

9,000+ 3,000 (transferred out and fully complete as to materials costs) 12,000
60,000/ 12,000 = P 5.00
 4. The Power Corp.’s accounting records reflected the following data for April 2019. The company
accounts its production using first-in-first-out cost flow method:
Work-in-process, March 31, 2019 60% completed as to materials
and conversion costs ? units
Work-in-process, April 30, 2019, 30% completed as to materials
and conversion costs 24,000 units
Equivalent units of production for April 2019 64,000
Units started and completed in April 50,000

Required: Compute how many units were in the beginning work.

Equivalent units for April

64,000
Less: EU – started and completed during:     

April 64,000
50,000
Work-in-process, end               
(24,000 x 3) 7,200 57,200

Equivalent units – work-in-process end Mar 31

6,800

Number of units in process as of       

March 31         6,800 / 40 17,000

5. Refer to no. 4. Compute for the equivalent units of production if the corporation used the weighted
average method of accounting.

Equivalent units – FIFO 64,000

Add equivalent units in March 31 (17,000 x .6) 10,200

Weighted Average EUP 74,200