QUEZON CITY UNIVERSITY

MIDTERM EXAMINATION
1st Semester AY 2021-2022
MANAGEMENT SCIENCE –BAAC 2A

(NOTE: Show your complete solution, without solution with correct

answer only is automatically ZERO)

A. WOW Company consumed P450,000 worth of direct materials during October,

2021. At the end of the month, the direct materials inventory of WOW was
P25,000 lower than the October 1 inventory level.

REQUIRED:
Compute how much was the direct materials procured in October 2021.

B. RELAX Company incurred the following costs during the month: direct labor,
P120,000; factory overhead, P108,000; and direct materials purchases, P160,000.
Inventories show the following costs:
BEGINNING ENDING
Finished Goods P 27,000 P 30,000
Work In Process 61,500 57,500
Direct Materials 37,500 43,500

REQUIRED:
Compute the cost of goods manufactured

C. GWAPINGS Company has the following data that were taken their records.

Aug 31, 2021 Sept. 30, 2021

INVENTORIES:
Raw materials P ? P 50,000
Work In Process 80,000 95,000
Finished Goods 60,000 78,000

Raw Materials purchases, P46,000

Factory Overhead, 75% of direct labor cost , P63,000
Selling and administrative expenses, 12.50% of sales, P25,000
Net Income for September, 2021, P25,000

REQUIRED:
Compute the cost of raw materials inventory on August 31, 2021

D. The following information were taken from the accounting records of DUGAS
Company for the year 2021:

Increase in raw materials inventory P 45,000

Decrease in finished goods inventory 150,000
Raw materials purchase 1,290,000
Direct labor payroll 600,000
Factory Overhead 900,000
Freight-Out 135,000

REQUIRED:
Compute the cost of raw materials used during the period

-end of exam - goodluck-