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Cost Accounting Midterm Review Removed 1

The document provides detailed information on job order costing for multiple companies, including ABI Co., Sylla Company, Venice Company, and Barron Company. It outlines various job costs, overhead applications, and inventory balances, along with multiple-choice questions related to calculating prime costs, overhead, and cost of goods sold. Additionally, it discusses the disposition of over- or under-applied overhead for Amanda Co.

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124 views5 pages

Cost Accounting Midterm Review Removed 1

The document provides detailed information on job order costing for multiple companies, including ABI Co., Sylla Company, Venice Company, and Barron Company. It outlines various job costs, overhead applications, and inventory balances, along with multiple-choice questions related to calculating prime costs, overhead, and cost of goods sold. Additionally, it discusses the disposition of over- or under-applied overhead for Amanda Co.

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ctcrg5pwwz
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2 Job Order Costing

ABI Co. uses a job order costing system and the following information is available from its records.
The company has 3 jobs in process: #5, #8, and #12.
Raw material used P120,000
Direct labor per hour P8.50
Overhead applied based on direct labor cost 120%
Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and
25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are
2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000. Other actual overhead costs totaled
P36,000.
1. Refer to ABI Co. What is the prime cost of Job #5?
A. P42,250 C. P73,250
B. P57,250 D. P82,750
2. Refer to ABI Co. What is the total amount of overhead applied to Job #8?
A. P18,250 C. P30,000
B. P26,350 D. P31,620
3. Refer to ABI Co. What is the total amount of actual overhead?
A. P36,000 C. P93,000
B. P69,000 D. P99,960
4. Refer to ABI Co. How much overhead is applied to Work in Process?
A. P69,000 C. P132,960
B. P99,960 D. P144,000
5. Refer to ABI Co. If Job #12 is completed and transferred, what is the balance in Work in Process
Inventory at the end of the period if overhead is applied at the end of the period?
A. P96,700 C. P170,720
B. P99,020 D. P139,540
6. Refer to ABI Co. Assume the balance in Work in Process Inventory was P18,500 on June 1 and
P25,297 on June 30. The balance on June 30 represents one job that contains direct material of
P11,250. How many direct labor hours have been worked on this job (rounded to the nearest hour)?
A. 751 C. 1,653
B. 1,324 D. 2,976
Sylla Company has the following data on April 30, 20x8:
April manufacturing overhead…………………………………………………..………… P30,101.80
Decrease in ending inventories:
Materials……………………………………………………………………………………………… 2,430.00
Goods in process…………………………..………………………………………………………… 590.00
Increase in ending inventory:
Finished goods……………………………………………………………………………………… 1,320.40

The manufacturing overhead amounts to 50% of the direct labor and the direct labor and
manufacturing overhead combined equal 50% of the total costs of manufacturing. All materials are
purchased FOB shipping point. What is the costs of goods manufactured?
A. P180,610.80 C. P182,300.80
B. P181,200.80 D. P183,200.80
Venice Company uses job order costing. At the beginning of June 20x8 two jobs were in
process:
Job 369 Job 372
Materials P4,000 P1,400
Direct labor 2,000 600
Applied factory overhead 3,000 900
Total P9,000 P2,900

There were no inventory of finished goods on June 1. During the month, Jobs 373, 374, 376, 378, and
379 were started. Materials requisitioned for June totaled P26,000, direct labor cost, P20,000, and
actual factory overhead of P32,000. Factory overhead is applied at the rate of 150% of direct labor
cost. The only job still in process at the end of June is Job 379, with costs of P2,800 for materials
and P1,800 for direct labor. Job 376, the only finished job on hand at the end of June, has a total
cost of P4,000. The cost of goods sold at normal amounted to:
A. P76,600 C. P80,600
B. 78,600 D. 82,600
The following data were taken from the records of Barron Company:
March 1, 20x8 March 31, 20x8
Inventories:
Direct Materials……………………………………………….. P ? P 100,000
Work-in-Process……………………………………………. 160,000 190,000
Finished Goods…………………………………………… …120,000 156,000

Materials purchases, P92,000.


Factory overhead, 75% of direct labor cost, P126,000.
Operating expenses, 12.5% of sales, P50,000.
Net income for the month, P50,000.
1. The cost of goods sold for the month amounted to:
A. P300,000 C. P336,000
B. P366,000 D. P175,000
2. The direct materials inventory on March 1, 20x8 amounted to:
A. P 80,000 C. P 92,000
B. P146,000 D. P116,000
Chapter 4 Overhead

Disposition of Over-under applied Overhead Account


The records of Amanda Co. revealed the following data for 20x8:
Work in Process P 73,150
Finished Goods 115,000
Cost of Goods Sold 133,650
Direct Labor 111,600
Direct Material 84,200
1. Refer to Amanda Co. Assume, for this question only, actual overhead is P98,700 and applied
overhead is P93,250. Manufacturing Overhead is
a. Overapplied by P12,900.
b. underapplied by P18,350.
c. overapplied by P5,450.
d. underapplied by P5,450.
2. Refer to Amanda Co. Assume that Amanda has underapplied overhead of P37,200 for 20x8 and
that this amount is material. What journal entry is needed to close the Overhead account? (Round
decimals to nearest whole percent.)
a. Debit Work in Process P8,456; Finished Goods P13,294; Cost of Goods Sold
P15,450 and credit Overhead P37,200
b. Debit Overhead P37,200 and credit Work in Process P8,456; Finished Goods
P13,294; Cost of Goods Sold P15,450
c. Debit Work in Process P37,200 and credit Overhead P37,200
d. Debit Cost of Goods Sold P37,200 and credit Overhead P37,200
3. Refer to Amanda Co. Assume that Amanda has underapplied overhead of P10,000 for 20x8 and
that this amount is immaterial. What is the balance in Cost of Goods Sold after the underapplied
overhead is closed?
a. P133,650 c. P143,650
b. P123,650 d. P137,803
4. Refer to Amanda Co. Assume that Amanda has overapplied overhead of P25,000 for 20x8 and
that this amount is material. What is the balance in Cost of Goods Sold after the overapplied
overhead is closed?
a. P123,267 c. P158,650
b. P144,033 d. P108,650

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