Cost Accounting and Control

Acctg 106 – 2023-2024 2nd Semester

Activity 1

Instruction: Handwrite the answers to the following questions on yellow paper. Submit
your handwritten responses before taking your midterm exams.

Chapter 1: Introduction to Cost Accounting

1. Define financial accounting

2. Define management accounting

3. How does management accounting serve both external users and internal users?

4. What are the differences between financial accounting and managerial

accounting?

5. Differentiate job -order costing from process costing.

6. What are the main characteristics of job order costing?

7. What are the main characteristics of process costing?

 Cost Accounting and Control
Acctg 106 – 2023-2024 2nd Semester
Activity 2

Instruction: Handwrite the answers to the following questions on yellow paper. Submit
your handwritten responses before taking your midterm exams.

Chapter 2: Costs- Concepts and Classifications

1. Distinguish between direct and indirect costs

2. Define the three integral components of a product.

3. Define variable, fixed, and mixed costs and discuss the effects of changes in

volume on these costs.

4. What are the formulas to be used in using the high low method in separating

mixed costs into fixed and variable components?

5. What are the formulas to be used in using the least square method in separating

mixed costs into fixed and variable components?

6. Distinguish between common costs and joint costs.

 Cost Accounting and Control
Acctg 106 – 2023-2024 2nd Semester
Activity 3

Instruction: Handwrite the answers to the following questions on yellow paper. Submit
your handwritten responses before taking your midterm exams.

Chapter 3: Cost Accounting Cycle

1. List the items given below (1-15) and for each item indicate the appropriate letter
or letters, the schedule and/or financial statement(s) in which the item will appear.
The schedule and financial statement are prepared on a yearly basis.

A. Cost of good sold statement

B. Statement of Comprehensive Income
C. Statement of Financial Position

The following items are found in its ledger and accompanying data:

1) Direct Labor 8) Finished goods Inventory,

2) Raw Material Inventory,
beginning
3) Work in Process inventory,
ending
4) Finished goods inventory,
beginning
5) Factory Overhead Applied
6) Depreciation on Office
Equipment
7) Work in Process Inventory,
beginning
ending
9) Cost of Goods Manufactured
10) Cost of Goods Available for
Sale
11) Cost of Materials Purchased
12) Accumulated Depreciation –
Office Equipment
13) Direct Materials Used
14) Total Manufacturing Cost
15) Factory Machinery

2. What is the format of the Statement of Comprehensive Income for a

Manufacturing business?

3. What is the format of the Statement of Comprehensive Income for a

Merchandising business?
4. Marvin Manufacturing Company has developed the following information for the

year ended December 31, 2023.

Raw Materials Inventory, January 1 ₱175,000.00

Purchases ₱300,000.00
Raw Materials Inventory, December 31 ₱125,000.00
Direct Labor ₱185,000.00
Factory Overhead (120% of Direct
Labor Cost)
Work in Process Inventory, January 1 ₱95,000.00
Work in Process Inventory, December
₱120,000.00
31
Finished Goods Inventory, January 1 ₱100,000.00
Finished Goods Inventory, December
₱80,000.00
31

Required: Cost of Goods Sold Statement

 Cost Accounting and Control
Acctg 106 – 2023-2024 2nd Semester
Activity 4

Instruction: Handwrite the answers to the following questions on yellow paper. Submit
your handwritten responses before taking your midterm exams.

Chapter 4: Job Order Costing

1. Under the job-cost system, purchases of direct materials are debited to?
2. Under the job-cost system, issues of direct materials are debited to?
3. Under the job-cost system, what journal entry should be made for the return to the
stockroom of direct materials previously issued to production for use on a
particular job?
4. Under the job-cost system, the peso amount of the entry involved in the transfer
of inventory from work in process to finished goods is the sum of the costs charged
to all jobs?
5. Under the job-cost system, indirect labor used should be debited to?
6. Which of the following is the basic document that is used to accumulate the cost
of each order in job order costing?
7. What is the best cost accumulation procedure to use when many batches, each
differing as to product specification, are produced?
8. The most common treatment of under or overapplied overhead is to close it to?
9. It’s two o’clock in the morning and you’ve been studying job-order costing for the
past three hours. You drift off to sleep and in your first dream you visit JOB-RDER
COSTING LAND. You are a durect labor perso and are traveling through a giant
ledger. By the time you finish your journey, which accounts will you travel
through and in what order?
a. Work in Process, Cost of Goods Manufactured, Finished Goods and Cost of
Goods Sold
b. Direct Labir, Work in Process, Finished Goods, and Cost of Goods Sold
c. Work in Process, Finished Goods, and Cost of Goods Solde
d. Manufacturing Overhead, Work In process, Cost of Goods Manufactured,
and Finished Goods
e. Direct Labor, Work in Process, Finished Goods, Cost of Goods
Manufactured and Cost of Goods Sold.
 10. Which of the following production operations would be most likely to employ a
job order system of cost accounting?
11. Someone told Marco de Santos, president of D’Santos Company, that under or
over applied manufacturing overhead can be allocated to three accounts. What are
those three accounts?
12. What accounts would be debited and credited when direct materials are
purchased on accounts?
13. What accounts would be debited and credited when the wages for indirect
laborers are recorded?
14. In a job-order costing system, payroll taxes deductions paid by the employer for
factory employees are normally accounted for as?
15. Cost of raw materials are debited to Raw Materials Inventory when:
a. The materials are ordered
b. The materials are received
c. Materials are put into production
d. The bill for the materials is paid.

The following information is taken from the records of the ABC Manufacturing Company
for the first quarter of 2024

January 1, 2024 March 31, 2024

Raw Material Inventory 32,200 34,100
Work in Process Inventory 38,500 33,050
Finished Goods Inventory 44,600 48,800
Direct Labor 254,000
Factory Overhead Cost 236,900
Cost of Goods Sold 678,300

1. How much is the Cost of Goods Manufactured during the first quarter?
2. How much is the total cost of goods placed in process?
3. How much is the cost of raw materials used?
 Cost Accounting and Control
Acctg 106 – 2023-2024 2nd Semester
Activity 5

Instruction: Handwrite the answers to the following questions on yellow paper. Submit
your handwritten responses before taking your midterm exams

Chapter 5: Just In Time and Backflush Accounting

The ABC Corporation has a cycle time of 1.5 days, uses a raw and in process account, and
charges all conversion costs to Cost of Goods Sold. At the end of each month, all
inventories are counted, their conversions cost components are estimated, and inventory
account balances are adjusted. Raw Materials cost is backflushed from raw and in process
account to finished goods. The following information for April.

Beginning balance of RIP account,

23,400
including P14,040 of conversion cost
Beginning balance of finished goods
account, including P14,040 of conversion 24.,000
cost
Raw Materials received on credit 444,000
Ending RIP inventory per physical
counts, including P15,360 conversion cost 25,600
estimate
Ending FG per physical count, including
19,000
P11,400 conversion cost estimate
Conversion Cost (Direct Labor -P210,000;
FOH P189,000)

Required: Journal Entries to record the given transactions.