Republic of the Philippines

CAMARINES NORTE STATE COLLEGE

F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

Cost Accounting – Final Project

Write the letter of the correct answer and the solution on a piece of paper and upload it in our google classroom. (Do it by group with
3 members. Deadline of submission is on or before December 13,2021 at 8 am)

1. Process costing methods are used by the following except

a. Industries producing homogeneous products in large volume
b. Service industries such as gas, water and heat
c. Customized cabinet manufacturer
d. Manufacturer of 8 – ounces jars peanut butter
2. The following are the characteristics of process cost system except
a. Cost are accumulated by department or cost center
b. Each department has its own general ledger WIP Inventory account
c. Total cost and unit costs for each department are periodically calculated
d. Equivalent units are used to restate – WIP Inventory to terms of completed units at the beginning of a period
3. Which of the following is/are a correct statement/s about process costing?
STATEMENT 1 - The denominator in computing the unit cost of a product is the actual units.
STATEMENT 2 -Unit cost is computed upon completion of the job.
a. Statement 1 only
b. Statement 2 only
c. Both statements are correct
d. Both statements are incorrect
4. It is a product flow wherein the raw materials are placed into process in the first department and flow through every department in
the factory.
a. Parallel product flow
b. Sequential product flow
c. Selective product flow
d. Flow chart
5. The product moves to different departments within the factory, depending upon the desired final product.
a. Parallel product flow
b. Sequential product flow
c. Selective product flow
d. Flow chart
6. From the industries listed below, which one is most likely to use process costing in accounting for production costs?
a. Road Builder
b. Electrical contractor
c. Newspaper publisher
d. Automobile Repair
7. Which of the following is characteristic of process costing system?
a. WIP Inventory is restated in terms of completed units
b. Costs are accumulated by order
c. It is used by a company manufacturing custom machinery
d. Standard costing are not applicable
8. An equivalent unit of material or conversion cost is equal to
a. Amount of material or conversion cost necessary to complete one unit of production
b. A unit of work in process inventory
c. The amount of material or conversion cost necessary to start a unit of production in WIP
d. Fifty percent of the material or conversion cost of a unit of finished goods inventory
9. When should process costing techniques be used in assigning costs to products?
a. if the product is manufactured on the basis of each order received
b. When production is only partially completed during the accounting period
c. If the product is composed of mass- produces homogeneous units
d. Whenever standard costing techniques should not be used.
10. The percentage of completion of the beginning WIP inventory should be considered in the computation of the equivalent units of
production for which of the following methods of process costing?
FIFO Weighted Average
a. yes No
b. yes yes
c. No No
d. No no
11. The units transferred in from the first department to the second department should be included in the computation of equivalent
units for the second department under which of the following methods of process costing?

FIFO Weighted Average

a. yes No
b. yes yes
c. No No
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

d. No no AND PUBLIC ADMINISTRATION

COLLEGE OF BUSINESS

12. An analysis of the activity in the department or cost center for the period.
a. Material requisition form
b. Cost of production report
c. Quantity Schedule
d. Cost of goods manufactured statement
13. This schedule accounts for the physical flow of units into and out of departments
a. Equivalent units of production
b. Cost of production report
c. Quantity Schedule
d. Cost of goods manufactured statement
The Zee manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a
month. The company started its manufacturing operation on 1st February, 2018 and costs of production for this month were as
follows:
Material  41,412;      Labor     32,054;         FOH        23,870
The production statistics for the month were as follow:
Units completed and transfer to finished goods store 6,500
Unit in Process on February 31, 2018 was 1,600 (Material 40%, Labor and FOH 20 per cent)
14. How much is the total manufacturing cost?
a. 97,336
b. 91,000
c. 8,100
d. 6,336
15. Using the same information, how much is the cost transferred to finished goods store?
a. 97,336
b. 91,000
c. 8,100
d. 6,336

16. Using the same information, how much is the work in process inventory ending?
a. 97,336
b. 91,000
c. 8,100
d. 6,336

The Prince Corporation has two production departments and maintains a process cost system. The following is a summary of the cost
for the month of December, 2017:
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

Report form production control department shows as follows:

17. How many units are being transferred to Department II?

a. 8,000
b. 1,500
c. 6,500
d. 4,500
18. How much is the Work in process Inventory ending for Department I?
a. 104,260
b. 7,915
c. 112,175
d. 45,508
19. How many equivalent units were produced for Department II?
Materials Labor Overhead

a. 6,500 7,250 7,000

b. 6,800 7,250 7,500
c. 6,000 6,500 7,250
d. 6,500 6,500 7,500

Correct Answer : 6,100 Mat; 5500 labor; 5000 OH

20. Below are the differences between FIFO and Average except:
a. Under FIFO, work last month on the units in process beginning is considered while under weighted average it is ignored.
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

b. Under FIFO, cost of goods in

COLLEGE OFending inventory AND
BUSINESS equals the equivalent
PUBLIC units in ending inventory times the unit current cost
ADMINISTRATION
while under weighted average, cost of goods in ending inventory equals the equivalent units in ending inventory times the weighted
average unit cost.
c. Under weighted average method, there is no assumed flow of manufacturing operation while under FIFO there is an
assumed flow of manufacturing operation.
d. Under weighted average method, WIP beginning in the department will require separate computation for its equivalent
production while FIFO the stage of completion of beginning is ignored.

21. If 100 units are 70% complete, 30 units 60% complete, 200 units 40% complete, and 60 units 5% complete, how many EUP have
been produced.
a. 70 b. 171 c. 175 d. 390

22. The Roberts company provides you the following data for department X:

Compute the equivalent units of production for MATERIALS of department X for the month of January using FIFO method.

a. 10,400 b. 9,600 c. 9,700 d. 9,680

23. C Company uses the FIFO method in its process costing system. The Assembly Department started the month with 6,000 units in
its beginning work in process inventory that were 20% complete with respect to conversion costs. An additional 74,000 units were
transferred in from the prior department during the month to begin processing in the Assembly Department. There were 8,000 units in
the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.
Required: What were the equivalent units for conversion costs in the Assembly Department for the month?

a. 74,000 b. 14,000 c. 80,000 d. 75,600

24. L Company uses the FIFO method in its process costing system. Department A is the first stage of Laurie Corporation's
production process. The following information is available for conversion costs for the month of May for Department A: Units Work
in process, beginning (25% complete with respect to conversion costs) 8,000 Started in May 40,000 Completed in May and transferred
to Department B 38,000 Work in process, ending (60% complete with respect to conversion costs) 10,000 The equivalent units of
production for conversion costs for the month are

a. 42,000 b. 38,000 c. 44,000 d. 36,000

 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

25. W Company uses the FIFO method in its process costing system. The beginning work in process inventory in a particular
department consisted of 10,000 units, 100% complete with respect to materials and 60% with respect to conversion costs. The total
cost in the beginning work in process inventory was $48,200. During the month, 25,000 units were transferred out of the department.
The costs per equivalent unit were computed to be $3.10 for materials and $4.50 for conversion costs. Determine the total cost of the
units completed and transferred out of the department.
a. 48,200 b. 114,000 c. 18,000 d. 180,200

E Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the
month with 13,000 units in its beginning work in process inventory. The units were 10% complete with respect to conversion costs.
The conversion cost in this beginning work in process inventory was 12,610. An additional 89,000 units were started into production
during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 30%
complete with respect to conversion costs. A total of 806,085 in conversion costs were incurred in the department during the month.
26. Determine the cost per equivalent unit for conversion costs.

a. 7.90 b. 9.45 c. 9.45 d. 9.31

27. How many is the equivalent units of production for conversion cost?
a. 102,000 b. 85,300 d. 86,600 d. 86,600

28. If E company uses weighted average method, what will be the equivalent units of production for conversion cost?
a. 102,000 b. 85,300 d. 86,600 d. 86,600
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

The Mexico Company manufactures

COLLEGE a single product that goes
OF BUSINESS AND through two departments.
PUBLIC The data relating to activity performed in
ADMINISTRATION
first department during the month of June is given below:

29. Compute the equivalent units of production for conversion costs assuming the company uses weighted average method.

a. 205,000 b. 220,000 c. 197,500 d. None of these

Materials Conversion cost

Completed and transferred 205,000 205,000
WIP ending 7,500
212,500

Jimmy Corporation uses the weighted-average method in its process costing system. The ending WIP Inventory is 100% complete
with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is 3.75 for
materials and 1.25 for labor and overhead.
30. What is the balance of ending WIP Inventory account?
a. 33,750 b. 7,875 c. 41,625 d. Cannot be determined

31. What is the amount of completed and transferred cost?

a. 33,750 b. 7,875 c. 41,625 d. Cannot be determined

Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of
9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor
and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance
of the ending work in process inventory account Dodd Corporation uses the weighted-average method in its process costing system.

This month the beginning inventory in the first processing department consisted of 400 units, The cost and percentage completion of
these units in the beginning inventory were:

A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month.

The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs.

32. How many units are in ending inventory in the first processing department at the end of the month?
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

a. 5,900 b. 10,100 OF BUSINESS

COLLEGE c. 1,100
ANDd. Zero
PUBLIC ADMINISTRATION

33. What is the equivalent units for conversion costs for the month in the first processing department?
a. 6,800 b. 5,400 c. 5,030 d. Cannot be determined

34. What is the cost per equivalent units for materials for the month in the first processing department? Weighted average method
a. 11.18 b. 21.37 c. 19.46 d. Cannot be determined

35. Which formula is INCORRECT?

a. Total material available for used = Materials beg + Purchases
b. Total cost of goods put into process = WIP, beg + Total manufacturing cost
c. Total material available for used = Materials used + Materials end
d. Total goods available for sale = FG end + Cost of goods manufactured
36. Cost of goods manufactured in manufacturing company is analogues to
a. Ending inventory in a merchandising company
b. Beginning inventory in a merchandising company
c. Cost of goods available for sale in a merchandising company
d. Cost of good purchased in a merchandising company
37. For manufacturing company, the cost of goods available for sale during the given accounting period is
a. the beginning inventory of finished goods
b. The cost of goods manufactures during the period
c. the sum of the above
d. None of the above
38. Which of the following does not occur with process costing?
a. Allocation of cost on periodic basis
b. Allocation of cost upon completion of job
c. Allocation of cost with regards to stage of completion
d. Calculation of equivalent units
39. Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion cost. Materials are added at the beginning of
the process. If a company uses weighted-average, total equivalent units for materials will equal:
a. EU to complete beginning inventory
b. Units started into the process this period
c. Units started into the process this period plus units in the beginning inventory
d. Units transferred out
40. Purchased materials are added in the second department of a three-department process, this order does not increase the number of
units produced in the second department and would:
a. Not change the amount transferred to the next department.
b. Decrease total work in process inventory.
 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600,
Philippines

c. Increase the factory overheadOF

COLLEGE portion of the ending
BUSINESS AND work-in-process inventory.
PUBLIC ADMINISTRATION
d. Increase total unit cost.