COSA COMPILATION OF QUIZZES PRELIM

TO FINALS (PROBLEM SOLVING)

1. The following costs relate to Antonio Industries for the

last quarter. 8. The following information’s are the pertaining to
Thailand Gem Company’s manufacturing operations. Write
Conversion Cost P435,000 the amount of your answers.
Direct Materials P215,600
Factory overhead is applied at 60% of direct labor cost
Selling administrative expense P185,000 Inventories 4/1/2022 4/30/2022
Direct Materials 45,000 37,500
1. How much is prime cost? P487, 475 WIP 22,500 15,000
SOL. Finished goods 67,500 90,000
435,000/2 = 217,500
217,500/4 = 54,375 Additional info:
217500+54,375 = 271,875 DM Purchased 105,000
DM = 215,600 DL Payroll 75,000
DL = 271,875 DL per hour 7.50
PRIME COST = 487,475 Factory overhead rate per dl hour 10

2. How much is the conversion cost? P435,000 (Given) 9. How much is the dm used? 112,500
SOL.
3. How much is the product cost? P650,600 DM, beg. 45,000
DM = 215,600 Purchased 105,000
DL = 271, 875 DM, end. 37,500
OH = 163,125 (271,875 * 60%) TOTAL 112,500
PRODUCT COST = 650,600
10. How much is applied overhead? 100,000
4. How much is the period cost? P185,000 (GIVEN) SOL.
75,000/7.50*10 = 100,000
5. Jco produces and sells milk tea flavored coconut. Over
the last five months Jco had the following production cost 11. How much is the manufacturing cost? 287,500
and production volume. DM = 112,500
DL = 75,000
Month Cost Volume OH= 100,000
June 6,000 12
July 6,659 14 12. How much is the cost of goods manufactured? 295,000
August 8,370 18 MC = 287,500
September 8,800 19 WIP, BEG. 22,500
October 8,050 17 COGP = 310,000
WIP, END. = (15,000)
6. Using the high-low method, what is the fixed cost per COGM = 295,000
month for coconut flavored production? P1,200
13. How much is the cost of goods sold? 272,500
SOL. COGM = 295,000
8,800 - 400(19) FG, BEG = 67,500
8,800 - 7,600 = 1,200 COGAS = 362,500
FG, END. = (90,000)
7. The variable cost per case is? P400 COGS = 272,500
SOL.
8,800 - 6,000= 2,800
19 - 12 = 7
2,800/7 = 400
PROBLEM SOLVING: The following manufacturing activity occurred
1-3. Scooter Corp had no beginning inventories, during the month of June 2012:
finished 40,000 units, and sold 36,000 units. There Purchased direct matrieals costing 60,000
were no ending inventories of materials or work in DL worked 9,900 hrs at 5 per hr
process. Materials purchased and used were FOH of 2.50 per direct labor hr was applied to
$225,000; direct labor and overhead were $170,000. production
Ending inventory would be at
a. $17,000 At the end of June 2012, the following information
b. $22,500 was gathered in connection with the inventories:
c. $39,500
Inventory in work in process:
d. Some other number.
DMU 12,960
Sol. 4 0,000 – 36,000 = 4,000 ending inventory DL (1,500 hrs) 7,500
units FOH applied 3,750
DMU 225,000 24,210
Conversion Cost 170,000 Inventory of direct materials 51,000
Manufacturing Cost 395,000 Compute the COGM. Show your solution
395,000/40,000 Sol.
Unit cost 9.875
9.875*4,000 DMU 60,000
Ending inventory 39,500 DL (9,900*5) 49,500
Applied OH (2.5*9,900) 24,750
Manufacturing Cost 134,250
4-6. Scooter Corp had no beginning inventories, WIP Beg 10,710
finished 40,000 units, and sold 36,000 units. There WIP End (24,210)
were no ending inventories of materials or work in COGM 120,750
process. Materials purchased and used were
$225,000; direct labor and overhead were $170,000.
Cost of goods sold would be valued at 12-15.

a. $39,500 Beta Company

b. $355,500 The following information pertains to Beta
c. $395,00 Company for Sep 20x4.
d. Some other number.
DM DL OH
Sol. 395,000 – 39,500 = 355,500 Job #323 $3,200 $4,500 ?
Job #325 ? 5,000 ?
7-11. In analyzing the job-order cost sheets, the Job #401 5,670 ? $5,550
records disclosed that the compositions of the work
in process inventory on June 1, 2012 were as Beta co. applies OH for Job #323 at 140% of DL
follows: and at 150% of DL for #325 and #401. The total
DMU 3,960 cost of Job #323 and #325 is identical.
DL (900 hrs) 4,500
Refer to Beta Co. What amount of OH is applied to
FOH Applied 2,250
10,710 Job #323?
Sol. 4,500*140% = 6,300
16-20. Quest Co. print shop that produces jobs to Required:
customer specifications. During Jan 20x6, Job
#3051 was worked on and the following 1. What is the EOQ?
information is available: 2𝑘𝑛
√ = √2(900,000)(15)
DMU $2,500 𝑐
DL hrs worked 15
Machine time used 6 = 𝟕, 𝟑𝟒𝟖. 𝟒𝟕
DL rate per hr $7 2. How many times would Duterte have to
OH application rate per hr of place an order in one year?
machine time $18
900,000/7,348.47 = 122.47 or 122
32-35 Lorenzo co. produces and sells a single item
What was the total cost of Job #3051 for Jan? of product. Inventory at the beginning of August
Sol. was 400 units valued at P18 per unit. Further
receipts and sales during the month were as follows:
DMU $2,500
DL (15*7) 105 August 10 receipts 600 units at 21php
OH applied (18*6) 1 08
2,713 August 20 receipts 500 units at ?php
OH application rate per hr of August 25 sales of 1,250 units at 40php
machine time $18
The inventory uses the FIFO method of stock
valuation. Gross profit for the August was P25,000.
21-25. What is the cost per unit of the 500 units received
JOB NUMBERS on August 20?
1201 1202 1203 1204
Sol.
DM P7,000 P5,800 P11,600 P5,000
DL 6,600 6,000 8,400 2,400 Sales 1,250*40 50,000
DL hrs 1,100 1,000 1,400 400 Gross profit (25,000)
Units COGS 25,000
produced 200 100 1,000 300
Sold units came from:
Units Cost
Manufacturing OH is applied at a rate of P2 per 400*18 7,200
direct labor hr for variable OH, P2,000 for fixed 600*21 12,600
OH. Jobs 1201, 1202, and 1203 were completed in 1,000 19,800
July. What is the cost of completed jobs? 1,250 25,000
250 5,200
1201 1202 1203 August 20 receipts
DM P7,000 P5,800 P11,600
DL 6,600 6,000 8,400 5,200/250 = 20.8
OH 4,200 4,000 4,800
58,400

26-31. Duterte buys basketball balls from a

manufacture at P100 each. Duterte expects to sell
900,000 balls evenly over the next year. Duterte
cost of capital is 10%. The total out of pocket cost
to carry one ball inventory is P0.5 and cost of
ordering ball is P15 per order.