Scribd
Upload
402 views4 pages

Cost Accounting Mastery - 1

The document contains 15 multiple choice questions regarding inventory valuation, costing systems, job order costing, process costing, and calculation of cost of goods sold. The questions cover topics such as calculation of economic order quantity, identification of predetermined overhead rates, identification of manufacturing accounts, calculation of manufacturing costs, and calculation of cost of goods sold.

Uploaded by

Mark Revarez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
402 views4 pages

Cost Accounting Mastery - 1

The document contains 15 multiple choice questions regarding inventory valuation, costing systems, job order costing, process costing, and calculation of cost of goods sold. The questions cover topics such as calculation of economic order quantity, identification of predetermined overhead rates, identification of manufacturing accounts, calculation of manufacturing costs, and calculation of cost of goods sold.

Uploaded by

Mark Revarez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

1.

The following data pertains to Western Company’s materials inventory:


Number of pounds required annually 17,000
Cost of placing an order P25
Annual carrying cost per pound of material P4.50
What is Western Company’s EOQ?

2. What costing system uses predetermined rate in computing for all the manufacturing costs?

3. Which of the following is not synonymous term to “ factory overhead”?


a. factory burden b. manufacturing overhead
c. manufacturing expenses d. none of the choices

4. What do you call the sum of costs of goods sold and ending inventory?

5. What part of the typical cycle operations of a job order costs system is the transformation of raw materials to
finished product using labor and overhead happens?
a. procurement b. production c. warehousing d. selling

6. What account is debited during application of manufacturing overhead?

7. In case the amount of underapplied overhead is immaterial, such amount must be closed to what account?

8. A company services office equipment. Some customers bring their equipment to the company’s service shop. Other
customers prefer to have the company’s service personnel came to their offices to repair their equipment. The most
appropriate costing method for the company is
a. job order b. activity-based c. process d. backflush

9. Madagascar Company’s beginning and ending inventories for the month of November are
November 1 November 31
Direct materials 67,000 62,000
Work in process 145000 171,000
Finished goods 85,000 78,000
Production data for the month of November follows:
Direct Labor P200,000
Actual factory overhead 132,000
Direct materials purchased 163,000
Transportation In 4,000
Purchase returns and allowance 2,000
Madagascar uses one factory overhead control account and charges factory overhead to production at 70% of direct
labor cost.

How much is the cost of goods transferred to finished goods?


a. P469,000 b. P477,000 c. P495,000 d. P484,000

10. Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted
direct labor cost and factory overhead for the previous fiscal year were P1,000,000 and P800,000, respectively.
Actual direct labor cost and factory overhead were P1,100,000 and P825,000, respectively. What is the amount of
under- or overapplied factory overhead?
a. P25,000 overapplied
b. P55,000 overapplied
c. P80,000 overapplied
d. P50,000 underapplied
11. Which of the following costs is an indirect product cost?
a. property taxes on plant facilities
b. wages of assembly workers
c. materials used
d. president's salary

12. The following information pertains to Fry Enterprises:


Cost of goods manufactured P450,000
Beginning work-in-process inventory 210,000
Ending work-in-process inventory 180,000
Manufacturing overhead 150,000

What are the prime costs for the year?


13. Inventory balances for the James Enterprises in February 2015 are as follows:
February 1, 2015 February 28, 2015
Raw materials P 27,000 P21,000
Work in process 48,000 37,200
Finished goods 108,000 90,000

During February, purchases of direct materials were P36,000. Direct labor and factory overhead costs were P60,000
and P84,000, respectively.

What is the cost of goods placed in process?


14. Midas Co. had a cost of goods sold for the quarter of P210,000.
Additional data are as follows:
Finished goods, beginning P38,000
Finished goods, ending 41,000
Factory overhead 63,000
Direct labor cost 58,000
No work in process inventories

What is the direct materials usage?


a. P86,000 b. P88,000 c. P90,000 d. P92,000

15. The following information was taken from Kim Company’s accounting records for the year ended December 31,
2009.
Increase in raw materials inventory P 15,000
Decrease in finished goods inventory 35,000
Raw materials purchased 430,000
Direct manufacturing labor 200,000
Factory overhead 300,000
Freight-out 45,000
There was no work in process beginning or end of the year. Kim’s 2009 cost of goods sold is:
a. P950,000 b. P975,000 c. 965,000 d. P995,000

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy