Allyson Charissa T.

Ansay
BSA – 2
Cost Accounting

Test Material 1
1. A
2. D
3. A
4. C
5. D
6. B
7. C
8. B
9. B
10. A
11. A
12. B
13. D
14. D
15. B
16. C
17. A
18. A
19. C
20. B
Test Material 2
1. B
Solution:
Actual Overhead P 141,200
Applied Overhead (1080 x P140) 151,200
Over applied OH (P 10,000)

2. D
Solution:
Job No.
C
DM cost P 73,200
DL cost 72,000
Total P 145,200
Actual Overhead (150 x 140) 21,000
Total P 166,200

E
DM cost P 27,200
DL cost 96,000
Total P 123,200
Actual Overhead (200 x 140) 28,000
Total P 151,200

Job no. C P 166,200

Job no. E 151,200
Total P 317,400
Multiply: 1.4
Total P 444,360
3. A
Solution:
Manufacturing Overhead-G101 P 255
Divide by: Direct Labor-G101 510
Predetermined OH Rate .5
Multiply: Direct Labor-G102 289
Overhead Charged to G-102 144.50

4. D
Solution:
Department 1 Department 2 Total
Direct Materials P 1,590 P 580 P 2,170
Direct Labor (P429/1.5) 286 48 334
Overhead Applied (15 x 18) 429 270 699
Total cost of job #639 P 3,203

5. D
Solution:
Direct Labor cost (3,100 x P8.50) P 26,350
Multiply: 120%
Total amount of overhead applied to job B-101 P 31,620

6. D
Solution:
Direct Materials (P 120,000 x 80%) P 96,000
Direct Labor (2,500 + 3,100 + 4,200) x 8.50 83,300
Total 179,300
Add: Total amount of overhead applied to job A-101 25,500
Total amount of overhead applied to job B-101 31,620
Total amount of overhead applied to job C-101 42,840
Total factory costs for the period P 279,260

7. D
Solution:
Materials requisitioned (37,200 + 35,200) P 72,400
Direct Labor costs (14,400 + 17500) 31,900
Overhead costs (360 + 400) x P30 22,800
Costs of goods manufactured P 127,100

8. A
Solution:
Materials requisitioned P 37,200
DL cost 14,400
Overhead (360 x P30) 10,800
Total 62,400

Gross profit per unit = (62,400/120) x 20% = P 104

9. B
Solution:
Raw Materials Requisitions P 148,500
Less: Indirect Materials 19,000
Direct materials issues to production P 129,500

10. D. P 578,750

11. A
Solution:
Materials used P 7,440
Direct Labor (3,600 x P30) 108,000
Overhead (3,600 x P37.50) 135,000
Total P 250,440
Multiply: Gross Margin rate 25%
Gross Margin for the month P 62,610

12. C. P 162,000
13. D. P 98,000

14. B
Solution:
Direct Labor hours (2,500 + 3,100 + 4,200) P 9,800
Multiply: Direct Labor per hour 8.50
Direct Labor costs 83,300
Multiply: Overhead applied on direct labor cost 120%
Total applied overhead for the period P 99,960

15. D
Solution:
Direct Materials 120,000 x (30% + 25%) P 66,000
Direct Labor (2,500 + 3,100) x 8.50 47,600
Applied Overhead (47,600 x 120%) 57,120
Work in process inventory at the end of the period P170,720

Test Material 3
1. Fabricating Finishing Total
Direct Materials P 1,590 P 570 P 2,160
Direct Labor (P429/1.5) 286 48 334
Overhead Applied (15 x 18) 429 270 699
Total cost of job #639 P 3,193
2. Fixed Overhead P 320,000
Add: Over applied overhead 44,000
Applied Overhead 364,000
Divide: (320,000/40,000) 8
Machine hours worked during the period P 45,500

3. Total hours 4,000

Less: Not Billable to clients 400
Number of hours 3,600
Multiply: Amount billed to clients 1,200
Total revenue of RR P 4,320,000

4. Raw Materials Purchases P 135,000

Less: Raw Materials increased by 75,000
Beginning Materials 60,000
Less: Indirect Materials 20,000
Direct Materials P 40,000

Total Charges to work in process P 960,000

Less: Direct Materials 40,000
Factory Overhead 277,500
Total labor component of Job 500 P 642,500

5. Overhead Rate
Molding: P602,000 (Factory Overhead)/70,000 (Machine Hours) = 8.6
Painting: P735,000 (Factory Overhead)/420,000 (Direct Labor Costs) = 1.75

Direct Materials (47,000 + 63,200) P 110,200

Direct Labor (9,000 + 68,000) 77,000
Overhead (1,100 x 8.6) 9,460
 (68,000 x 1.75) 119,000
Total Manufacturing costs 315,660
Divide: 100 units
Total units product cost P 3,156.60

6. Overhead rate
Job #105 Job #106
Overhead P 20,800 + P 11,200 = 32,000
Direct Labor 13,000 + 7,000 = 20,000
32,000/20,000 = 1.6

Job #105 Job #106 Job#107 Total

June costs:
Direct Materials -- P 8,200 P 21,300 P29,500
Direct Labor 4,000 6,000 10,000 20,000
Overhead 6,400 9,600 16,000 32,000
(4,000 x 1.6) (6,000 x 1.6) (10,000 x 1.6)
Total amount charged to Work in Process in the month of June P 81,500

7. Overhead rate
Job #105 Job #106
Overhead P 20,800 + P 11,200 = 32,000
Direct Labor 13,000 + 7,000 = 20,000
32,000/20,000 = 1.6
Job #105
May costs:
Direct Materials P 16,500
Direct Labor 13,000
Overhead 20,800
Total May cost 50,300
Add: June costs:
Direct Materials -----
Direct Labor 4,000
Overhead (4,000 x 1.6) 6,400
Total June costs: 10,400

8. Work in process P 460,000

Cost of goods sold 1,440,000
Finished Goods 500,000
Total P 2,400,000
Divide: Machine hours 48,000
Predetermined Overhead Rate 50

9. August 1 P 40,500
Add: Charges during August:
Direct Materials 243,000
Direct Labor 162,000
Factory Overhead 129,600
Total 575,100
Less: Debits to Finished goods 486,000
Total 89,100
Less: Direct Labor Charge 20,250
Overhead to production at predetermined rate 16,200
(P 20,250 x 80%)
Direct Materials charged at Job XXX P 52,650

10. Direct Labor (Job PW100) P 38,400

Multiply: Overhead applied rate 60%
Total 23,040
Add: Direct Labor 38,400
 Cost of job PW100 at the beginning of the month P 61,440

11. Total Direct Labor costs for all jobs P 247,200

Less: Completion Cost in DL (PW100) 42,000
Labor used (PW200) 120,000
Direct Labor charged to PW300 85,200
Add: Overhead (85,200 x 60%) 51,120
Cost of unfinished Job PW300 P 136,320

12. Direct Labor P 120,000

Add: Applied Overhead (120,000 x 60%) 72,000
Total amount billed to PW200 P 192,000

13. Direct Labor (Job PW100) P 38,400

Multiply: Overhead applied rate 60%
Total 23,040
Add: Direct Labor 38,400
Cost of job PW100 at the beginning of the month P 61,440

14. Total Direct Labor costs for all jobs P 247,200

Less: Completion Cost in DL (PW100) 42,000
Labor used (PW200) 120,000
Direct Labor charged to PW300 85,200
Add: Overhead (85,200 x 60%) 51,120
Cost of unfinished Job PW300 P 136,320

15. Direct Labor P 120,000

Add: Applied Overhead (120,000 x 60%) 72,000
Total amount billed to PW200 P 192,000