1. You are given the following data on the operations of Sunny Mfg.

Corp:
Raw materials used P 129,000
Factory overhead 80,000
Work in process inventory, Jan. 1 35,000
Work in process inventory, Dec. 31 42,000
Finished goods inventory, Jan. 1 18,000
Finished goods inventor, Dec. 31 28,000
Cost per unit of finished product 20
Number of units sold, 12,500

How much is labor cost?

a. P58,000 b. P 38,000 c. P 24,000 d. P 34,000

2. The following data ae given by Domestic Mfg. Corp:

Increase in finished goods inventory P 12,000
Decrease in raw materials inventory 10,000
Increase in work in process inventory 5,000
Purchase returns and allowances 6,000
Freight-In 7,000
Labor cost 65,000
Factory overhead 25,000
Cost of goods sold 153,000

How much must be raw materials purchases?

a. P57,000 b. P 69,000 c. P 55,000 d. P 59,000

3. The following information is provided by Maunlad Mfg. Corp:

Cost of goods manufactured P 470,000
Labor cost 100,000
Factory overhead 50,000
Finished goods, beginning 30,000
Finished goods, ending 20,000
Cost of goods sold 480,000
Raw materials used 500% of work in process, ending
Work in process, ending 75% of work in process, beginning

Raw materials used must be

a. P 300,000 b. P 290,000 c. P 450,000 d. P 400,000

4. Golden Manufacturers provides you with the following data:

Cost of goods sold P 360,000
Raw materials used 150,000
Labor cost 100,000
Factory overhead 100,000
Ending inventory of work in process and beginning inventory of finished goods inventories are 50% and 83-1/3% of
beginning inventory of work in process, respectively. Finished goods inventory, ending is 140% of finished goods
inventory beginning.

Cost of goods manufactured is:

a. P340,000 b. P 350,000 c. P 380,000 d. P370,000

Questions 5 to 7 are based on the following information:

The totals of the manufacturing work sheet prior to the inclusion of ending inventories are as follows:
Debits Credits
Manufacturing P 210,000 P 3,600
Cost of goods sold 35,000 -
Income statement 95,000 310,000
Balance sheet ? 360,000
The ending inventories are: Raw materials, P38,000; Work in Process, P50,000; and Finished goods, inventory,
P25,000.

5. How much must be the cost of goods manufactured?

a. P 68,000 b. P 206,400 c. P 118,400 d. P 128,400
6. How much must be the cost of goods sold?
a. P 166,400 b. P 153,400 c. P 128,400 d. P 206,400

7. How much must be the net income (loss)?

a. P 215,000 b. (P 226,400) c. P 86,600 d. P 68,400

8. The following information was taken from Cody Company’s accounting records for 2018:
Decrease in raw materials inventory P 15,000
Increase in finished goods inventory 35,000
Raw materials purchased 430,000
Direct labor payroll 200,000
Factory overhead 300,000
Freight-Out 45,000
There was no work in process inventory at the beginning or at the end of the year. Cody’s cost of goods sold for 2018
is:
a. P895,000 b. P 910,000 c. P 950,000 d. P 900,000

9. How much is the cost per unit of the sole product of the company based on the following information:
Factory overhead P 35,000
Increase in raw materials inventory 8,000
Sales 120,000
Decrease in work in process, inventory 10,000
Gross profit based on sales 30%
Percentage of cost of goods sold based on cost of goods manufactured 105%
No. of units produced 160,000 units

a. P0.525 per unit b. P 0.50 per unit c. P 0.605 per unit d. P 0.60 per unit

10. The footing on a manufacturing work sheet (before adjustments and extension of the balances to the corresponding
succeeding columns) are as follow:
Debits Credits
Manufacturing P 158,000 P 39,000
Cost of goods sold 25,000 26,000
Income Statement 63,000 245,000
The following adjustments have not yet been included in the working paper:
Unused factory supplies, P2,600, still included in factory supplies expense
Unrecorded purchase returns, P15,000
Bad debts, P12,000
Understatement in finished goods inventory, P8,000

How much should be the net income?

a. P 72,400 b. P 77,600 c. P 93,600 d. P 89,600

11. How much should be the net change in finished goods inventory based on the following information:
Increase in raw materials inventory P 8,000
Decrease in work in process inventory 11,000
Direct labor cost 55,000
Factory overhead 30,000
Raw materials purchases 85,000
Freight-In 7,000
Purchase returns and allowances 9,500
Freight-Out 2,500
Sales 275,000
Gross profit percentage (based on cost) 66-2/3%

a. Increase by P5,500 c. Decrease by P5,500

b. Decrease by P21,500 d. Increase by P21,500

12. Product unit cost is P35. Determine the amount of net purchases based on the following information:
Increase in finished goods inventory P 9,000
Decrease in work in process inventory 5,000
Increase in raw materials inventory 6,000
Direct labor cost 80,000
Factory overhead 64,000
Sales 420,000
Gross profit based on sales 50%

a. P 150,000 b. P 76,000 c. P 146,000 d. P 156,000

13. Silver Corp. provides you with the following information on its 2018 operations:
Inventories, January 1, 2018:
Finished goods P 12,000
Work in process 15,000
Raw materials 19,000
Materials Purchases P 60,000
Purchase returns 3,000
Direct materials issued to production 35,000
Direct labor cost 29,000
Factory overhead control 15,100
Sales (at 60% gross profit based on cost) 94,400
Increase in work in process inventory 8,500
Factory overhead rate: 50% of direct labor cost

How much must be the change in finished goods inventory?

a. Increase by P11,000 c. Increase by P28,000
b. Increase by P32,240 d. Increase by P25,000

Questions 14 to 16 are based on the following information:

Charming Co. provides you with the following information:
August 31 September 30
Inventories:
Materials P ? p 50,000
Work in process 80,000 95,000
Finished goods 60,000 78,000

September transactions:
Raw materials purchases, P46,000
Factory overhead (75% of direct labor cost), P63,000
Selling and administrative expenses, (12.5% of sales), P25,000
Factory overhead recorded, P 62,800
Net income for September, P25,200

14. Material inventory (beginning) must be:

` a. P 40,000 b. P 40,200 c. P 43,200 d. P42,000

15. Cost of goods manufactured must be:

a. P 168,200 b. P 168,000 c. 160,000 d. P 160,200

16. Cost of goods sold (normal) must be:

a. P150,200 b. P 150,000 c. P 152,000 d. P 152,200
Questions 17 to 19 are based on the following information:
The following information pertains to Arp Co’s manufacturing operations:
Inventories March 1 March 31
Direct materials P 36,000 P 30,000
Work in process 18,000 12,000
Finished goods 54,000 72,000

Additional information for the month of March:

Direct materials purchased P 84,000
Direct labor payroll 60,000
Direct labor rate per hour 7.50
Factory overhead rate per direct labor hour 10.00

17. How much must be the prime cost for the month?
a. P 90,000 b. P 150,000 c. P 144,000 d. P 140,000

18. How much must be the conversion cost for the month?
a. P 60,000 b. P 140,000 c. P 170,000 d. P 150,000

19. How much must be the cost of goods manufactured for the month?
` a. P 236,000 b. P 296,000 c. P 230,000 d. P 246,000