AE 126 – Cost Accounting and Control

Second Semester, SY 2021-2022

Module 3 Activity (Quiz)

Instruction: Please read the questions carefully and answer the requirements for each
problem. Three points (3 pts) will be assigned to each question (1 pt for the formula, 1 pt for
correct solution, and 1 pt for the correct final answer). Please submit your answers through
my email add: adbesino@gmail.com or thru my messenger account: Angela B. Casios.

Problem 1:

The transactions pertaining to a merchandising business for the month of July is as follows:

July 1 Beginning Inventory 50 units @ $20.00 per unit

7 Purchased 200 units @ $22.00 per unit

9 Sold 100 units @ $25.00 per unit

15 Purchased 125 units @ $24.00 per unit

19 Purchased 50 units @ $24.50 per unit

25 Sold 120 units @ $27.00 per unit

29 Sold 50 units @ $28.00 per unit

Required:
a. Determine the following items for the month of July using FIFO Periodic
Inventory System:

1. Cost of Goods Sold

2. Cost of Ending Inventory

b. Determine the following items for the month of July using LIFO Periodic
Inventory System:

1. Cost of Goods Sold

2. Cost of Ending Inventory

Accredited: Accrediting Agency of Chartered Colleges and Universities of the Philippines (AACCUP)
Member: Philippine Association of State Universities and Colleges (PASUC)
Agricultural Colleges Association of the Philippines (ACAP)
 c. Determine the following items for the month of July using Weighted Average
Periodic Inventory System:

1. Weighted Average Unit Cost

2. Cost of Goods Sold
3. Cost of Ending Inventory

Problem 2:

The following data for the month of September 2021 are from the books of Roxas City
Manufacturing Company:

August 31, 2021 September 30, 2021

Raw Materials P20, 000 P25, 000
Work in Process 30, 000 36, 000
Finished Goods 40, 000 45, 000

Additional Information:

Direct labor cost is P60, 000

Factory Overhead is 60% of direct labor cost
Cost of goods sold is P125, 000
Selling and administrative expenses is P37, 000
Sales for the month of September 2021 is P185, 000

Required:
a. What is the cost of raw materials purchased during the month of September?
b. What is the cost of goods manufactured during the month of September?
c. What is the income of the company for the month of Spetember?

Accredited: Accrediting Agency of Chartered Colleges and Universities of the Philippines (AACCUP)
Member: Philippine Association of State Universities and Colleges (PASUC)
Agricultural Colleges Association of the Philippines (ACAP)