2nd Flr, GF Partners Bldg, 139 H.V.

dela Costa, Salcedo Village, Makati City

3rd Flr. EPCIB Bldg. 2070 Claro M. Recto, Manila

Practical Accounting 2 Prof. Jennifer Tolentino

QUIZZER IN COST ACCOUNTING

Job Order Costing
The work in process account of the Malinta Company which uses a job order cost system follows:
Work in Process
April 1 Bal 25,000 Finished Goods 125,450
Direct materials 50,000
Direct Labor 40,000
FO applied 30,000

Overhead is applied to production at a predetermined rate, based on direct labor cost. The work in process at April 30
represents the cost of Job No 456, which has been charged with direct labor cost of P3,000 and Job No 789, which has
been charged with applied overhead of P2,400.

1. The cost of direct materials charged to Job No. 456 and 789 amounted:
a. P8,700 c. P4,500
b. P7,600 d. P4,200

2. The prime cost during the month amounted to;

a. P70,000 c. P120,000
b. P90,000 d. P145,000

The following cost data pertain to Matatag Company for March 2000
March 1 March 31
Materials P40,000 P50,000
Work in Process 25,000 35,000
Finished Goods 60,000 70,000
March 1-31
Direct Labor Cost P120,000
Factory Overhead applied 108,000
Cost of good sold 378,000
3. The cost of goods manufactured during March was;
a. P378,000 c. P398,000
b. P388,000 d. P425,000

4. The amount of materials purchased for the month was:

a. P50,000 c. P180,000
b. P170,000 d. P220,000

Hamilton Company uses a job order costing. Factory overhead is applied to production at a budgeted rate of 150% of
direct labor costs. Any overapplied or underapplied factory overhead is closed to the cost of good sold account at the
end of the month. Additional information is available as follows:
Direct Materials P4,000
Direct Labor 2,000
Factory overhead applied 3,000
P9,000
Jobs 102,103 and 104 were started during February. Direct materials requisitions for February totaled P26,000. Direct
labor costs of P20,000 were incurred for February. Actual factory overhead was P32,000 for February. The only job
still in process at he end of February was Job No 104, with costs of P2,800 for direct materials and P1,800 for direct
labor

5. The cost of goods manufactured for February was :

a. P77,700 c. P79,700
b. P78,000 d. P85,000

1
During March , Marc Company incurred the following costs on Job 209 for the manufacture of 200 motors:
Original cost accumulation:
Direct materials P660
Direct Labor 800
Factory overhead (150% of DLC) 1,200
P2,660
Direct costs of reworking 10 units:
Direct materials P100
Direct Labor 160
P260
Method A – The rework cost were attributable to the exacting specifications of Job 209, and the full rework costs were
charged to this specific job.
Method B – The defective units fall within the normal range and the rework is not related to a specific job, or the
rework is common to all the jobs.

6. The cost per finished unit of Job 209 using method A is:
a. P15.60 c. P15.80
b. P13.30 d. P13.50

7. The cost per finished unit of Job 209 using method B is:
a. P13.30 c. P15.80
b. P15.80 d. P13.60

Rumors Company applies factory overhead as follows:

Factory Overhead Rate
Fabricating Department P7.75 per machine hour
Spreading Department 15.10 per machine hour
Gossiping Department 2.125 per machine hour

Actual machine hours are: 19,000 hours for fabricating; 27,500 hours for spreading and 5,500 hours for gossiping
8. If the actual factory overhead cost for the period is P574,375, how much is over(under) applied factory
overhead?
a. (P11,875.00) c. (P187.50)
b. (P23,562.50) d. (P76,125.00)

DMF Manufacturing Company uses a job order costing system and a predetermined overhead rate based on machine
hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be P120,000
and the machine hours used would be 8,000.

The following information pertain to June of the current year:

Job A Job B Job C
Work in process, June 1 P8,000 P13,000 P19,000
Materials requisitioned 2,000 2,400 3,600
Direct labor costs 1,200 1,800 2,000
Machine hours 400 700 900

Actual manufacturing costs incurred were P29,000. At the end of June, Job B was sold at 60% above cost.

9. The total costs associated to Job A is

a. P35,200 c. P11,200
b. P17,200 d. P40,200

10. The billing price for Job B is

a. P44,320 c. P31,580
b. P94,720 d. P46,200

The following information was taken from the records of the Uganda Corporation for the month of June 2002. (There
were no inventories of work in process or finished goods on June 1)

Units Costs
Sales during the month 8,000 P?
Manufacturing costs for month:
Direct Materials P32,000
Direct Labor 20,000
Overhead costs applied 15,000
Overhead costs underapplied 800
Inventories, June 30:
Work in process 1,000 P?
Finished goods 2,000 ?
Indirect manufacturing costs are applied on a direct labor costs basis. The underapplied balance is due to seasonal
variations and will be carried forward. The following cost estimates have been submitted for the work in process

2
inventory of June 30; materials P3,000; direct labor P2,000; overhead P1,500.

11. The no of units that were completed and transferred to finished goods during the month was
a. P8,000 c. P10,000
b. P6,000 d. P11,000

12. The actual overhead for the month is

a. P15,000 c. P14,200
b. P15,800 d. answer not given

13. The manufacturing cost per unit is

a. P6.05 c. P11.09
b. P8.375 d. P4.84
Hull Machine Shop is a manufacturer of aircraft parts. Five aircraft parts out of job lot of 50 aircraft parts are spoiled.
Costs assigned prior to the inspection point are P2,000 per part. The current disposal price of the spoiled parts is
estimated to be P600 per part

14. If the spoilage is normal and attributable to a specific job, the unit cost of the good units is
a. P2,000 c. P600
b. P2,155 d. P1,400

15. If the spoilage is normal common to all jobs, the unit cost of the good units is
a. P2,000 c. P600
b. P2,155 d. P1,400

16. If the spoilage is abnormal, the amount chargeable to Loss from spoilage account is
a. P3,000 c. P7,000
b. P10,000 d. P0

17 Consider Hull Machine Shop above, if the 5 aircraft pars are defective, normal and attributable to specific job
and it requires the following cost to rework the units: Materials of P800, Labor of P2,000 and Overhead of
P1,000. The entry to record the cost of rework is:
a. Manufacturing Overhead Control 3,800
Materials 800
Wages Payable 2,000
Manufacturing Overhead Applied 1,000

b. Loss from rework 3,800

Materials 800
Wages Payable 2,000
Manufacturing Overhead Applied 1,000

c. Work in Process 3,800

Materials 800
Wages payable 2,000
Manufacturing Overhead applied 1,000

d. Work in Process 3,800

Materials 800
Wages payable 2,000
Manufacturing Overhead Control 1,000

18. Consider data in No 14, except that the rework is normal and common to all jobs, the entry to record the cost of
reworked is:
a. Manufacturing Overhead Control 3,800
Materials 800
Wages Payable 2,000
Manufacturing Overhead Applied 1,000

b. Loss from rework 3,800

Materials 800
Wages Payable 2,000
Manufacturing Overhead Applied 1,000

c. Work in Process 3,800

Materials 800
Wages payable 2,000
Manufacturing Overhead applied 1,000

d. Work in Process 3,800

Materials 800
Wages payable 2,000

3
 Manufacturing Overhead Control 1,000

Fred Company employs a job order costing system. Only three jobs, #105, #106, and #107 were worked during
November and December 2001. Job#105 was completed December 10; the other two jobs were still in production on
December 31, the end of the company’s operating year. Job cost sheets on the three job follows:
#105 #106 #107
November costs:
Direct Materials P16,500 P9,300 -
Direct Labor 13,000 7,000 -
Factory Overhead 20,800 11,200 -

December costs;
Direct Materials P- P8,200 P21,300
Direct Labor 4,000 6,000 10,000
Factory Overhead ? ? ?

The following additional information is available:

Manufacturing overhead is assigned to jobs on the basis of direct labor cost
Indirect materials used during December totaled P4,000
Indirect labor cost for December totaled P8,000
Various manufacturing overhead incurred during December was P19,000
Balances in the inventory accounts at November 30 were as follows:
Raw Materials P40,000
Work in Process ?
Finished Goods 85,000

19. The predetermined overhead rate used to assigned overhead costs to jobs is
a. 60% of DL cost c. 160% of DL cost
b. 62.50% of DL cost d. 60% of DM cost

20. The total overhead costs applied during December is

a. P12,500 c. P32,000
b. P12,000 d. P31,000

21. The entry to record overhead charged to production is

a. Work in process 31,000
Manufacturing Overhead Control 31,000

b. Work in process 31,000

Materials 4,000
Wages Payable 8,000
Various Account 19,000

c. Work in Process 32,000

Manufacturing Overhead Control 32,000

d. Work in Process 32,000

Manufacturing Overhead Control 32,000

22. The cost of goods manufactured for the period is

a. P56,700 c. P58,300
b. P54,300 d. P55,000

23. The balance of the work in process on December 31 is

a. P27,500 c. P32,000
b. P23,800 d. P73,000

24. The total amount debited to work in process account for December is
a. P81,500 c. P61,500
b. P49,500 d. P80,500

25. The overhead resulted to a variance of

a. P3,000 underapplied c. P19,000 underapplied
b. P3,000 overapplied d. P19,000 overapplied

PROCESS COSTING

4
Weighted Average Costing
The following data for te month of September were taken from the cost records of Department A of NLP which
uses average costing:
Opening inventory of work in process
Units –(all materials and 50% converted) 500
Costs – Materials P2,400
Labor 1,,500
Factory Overhead 760
Put into Production:
Units 5,000
Costs – Materials P25,100
Labor 19,380
Factory Overhead 14,900

Completed and transferred 4,800 units

Ending inventory of work in process
Units –(all materials and 60% converted) 700

1. The equivalent unit of production for labor is

a. 7,200 c. 4,970
b. 5,220 d. none of the given

2. The unit cost of material for the month is

a. P5.00 c. P4.00
b. P5.50 d. none of the given
Cost and statistics for Dept B of a company manufacturing a single product in three department follow:
Work in Process, October 1
Cost in Dept A P11,380
Cost in Dept B
Costs – Materials None
Labor P 500
Factory Overhead 50
Cost added in Dept B in October
Costs – Materials None
Labor P13, 000
Factory Overhead 450

Units in Process, October 1(60% converted) 500

Units received from Dept A at P2.60/unit 6,700
Units completed and transferred 6,800
Units in Process, October 31 (50% converted) 400

The company uses average costing method

3. The equivalent production for labor was
a. 7,200 c. 6,800
b. 7,000 d. none of the given

4. The conversion costs per unit in Dept B was

a. P2.00 c. P5.00
b. P6.00 d. none of the given

Materials are added at the start of the process in Cedar Company’s department, the first stage of the production
cycle. The following information is available for the month of July:
Work in Process, July 1 (60% converted) 60,000 units
Started in July 150,000
Transferred to next department 110,000
Lost in Production 30,000
Work in Process, July 31 (50% converted) 70,000

Under Cedar Company’s cost accounting system, the costs incurred on the lost units are absorbed by the
remaining good units
5. Using the weighted average method, what are the equivalent units for the materials?
a. 120,000 c. 180,000
b. 145,000 d. 210,000

SSS Corporation’s production cycle starts in the Mixing Department. The following information is available for
the month of April:
Work in Process, April 1 (50% converted) 40,000 units
Started in April 240,000

5
 Work in Process, April 30 (60% converted) 25,000

Materials are added in the beginning of the process.

6. Using the weighted average method , what are the equivalent units of production for the month of April?
Materials Conversion
a. 240,000 250,000
b. 255,000 255,000
c. 270,000 270,000
d. 280,000 270,000

Roy Company manufactures product X in two stage production cycle in Dept A and B. Materials are added at
the beginning of the process in Dept B. Roy uses the weighted average method. Conversion costs for Dept B
were 50% complete as to the 6,000 units in the beginning WIP and 75% complete as to the 8,000 units in the
ending WIP. 12,000 units were completed and transferred out . An analysis of the costs relating to work in
process and production activity in Dept B for February is as follows:
Trans in Materials Conversion
WIP, February 1 P12,000 P2,500 P1,000
February cost added 29,000 5,500 5,000

7. The total cost per equivalent unit transferred out for February of Product X (rounded to the nearest centavo)
a. P2.75 c. P2.82
b. P2.78 d. P2.85

The Wiring Dept is the second stage of Fern Company’s production cycle. On May 1, the beginning work in
process contained 25,000 units which were 60% complete as to conversion costs. During May, 100,000 units
were transferred in from stage one of Fern’s production cycle. On May 31, the ending work in process contained
20,000 units which were 80% complete as to conversion costs. Material costs are added at the end of the
process.
8. Using the weighted average method, equivalent units were:
Trans in Materials Conversion
a. 100,000 125,000 100,000
b. 125,000 105,000 105,000
c. 125,000 105,000 121,000
d. 125,000 125,000 121,000

Lucas Co adds materials in the beginning of the process in the Forming Dept., which is the first of two stages of
its production cycle. Information concerning the materials used in the Forming Dept in October are as follows:
Units Costs
Work in Process, October 1 6,000 P3,000
Units started in October 50,000 25,560
Units completed and transferred out 44,000 ?

9. Using the weighted average method, what was the material cost of work in process at October 31?
a. P3,000 c. P6,000
b. P5,520 d. P6,120

Information concerning Dept B of the Dovinlen Co is as follows:

Units Costs
Beginning work in process 5,000 P6,300
Units transferred in 35,000 58,000
Units completed 37,000

Costs
Trans in Materials Conversion
Beginning WIP P2,900 P-0- P3,400
Units transferred in 17,500 25,500 15,000

Conversion costs were 20% complete as to beginning work in process and 40% complete as to the ending work
in process. All materials are added at the end of the process. Toby uses average method.
10. The cost per equivalent unit for conversion costs is
a. P0.44 c. P0.48
b. P0.46 d. P0.50

11. The portion of the total cost of ending WIP attributable to the transferred in costs
a. P-0- c. P1,530
b. P1,500 d. P1,650

6
FIFO Costing

1.. Lisa Co. makes fabric-covered hatboxes. The company began August with 500 boxes in process that were 100
percent complete as to cardboard, 80 percent complete as to cloth, and 60 percent complete as to conversion
costs. During the month, 3,300 boxes were started. On August 31, 350 boxes were in process (100 percent
complete as to cardboard, 70 percent complete as to cloth, and 55 percent complete as to conversion costs).
Using the FIFO method, what are equivalent units for cloth?

a. 3,450
b. 3,295
c. 3,395
d. 3,595

Forte Co. has the following information for May:

Beginning Work in Process Inventory

(70% complete as to conversion) 6,000 units
Started 24,000 units
Ending Work in Process Inventory
(10% complete as to conversion) 8,500 units

Beginning WIP Inventory Costs:

Material P23,400
Conversion 50,607

Current Period Costs:

Material P31,500
Conversion 76,956

All material is added at the start of the process and all finished products are transferred out.

2. How many units were transferred out in May?

a. 15,500
b. 18,000
c. 21,500
d. 24,000

3. Assume that weighted average process costing is used. What is the cost per equivalent unit for material?
a. P1.83
b. P1.05
c. P0.55
d. P1.31

4. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion?
a. P7.03
b. P3.44
c. P4.24
d. P5.71

The December 25th Co. makes wreaths in two departments: Forming and Decorating. Forming began the month with
500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During
the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were
100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted
average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:

Material P1,000
Conversion 1,500
Current Costs:
Material P3,200
Conversion 5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as
to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were
50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of
process costing, and costs associated with Decorating are:

7
Beginning WIP Inventory:
Transferred In P1,170
Material 4,320
Conversion 6,210

Current Period:
Transferred In ?
Material P67,745
Conversion 95,820

5. How many units were transferred to Decorating during the month?

a. 7,000
b. 600
c. 4,900
d. 5,950

6. What was the cost transferred out of Forming during the month?
a. P6,419
b. P5,341
c. P8,330
d. P8,245

BCW Co. adds material at the start to its production process and has the following information available for November:

Beginning Work in Process Inventory

(40% complete as to conversion) 7,000 units
Started this period 32,000 units
Ending Work in Process Inventory
(25% complete as to conversion) 2,500 units
Transferred out ?

7. Compute the number of units started and completed in November.

a. 29,500
b. 39,000
c. 36,500
d. 34,500

8. Calculate equivalent units of production for material using FIFO.

a. 36,800
b. 32,000
c. 39,000
d. 37,125

9. Calculate equivalent units of production for conversion using FIFO.

a. 34,325
b. 30,125
c. 37,125
d. 39,000

10. Calculate equivalent units of production for material using weighted average.
a. 34,325
b. 32,000
c. 37,125
d. 39,000

11. Calculate equivalent units of production for conversion using weighted average.
a. 39,925
b. 37,125
c. 34,325
d. 38,375

Storey Co. adds material at the start of production. February information for the company follows:

Beginning Work in Process Inventory

(45% complete as to conversion) 10,000 units
Started this period 120,000 units
Ending Work in Process Inventory
(80% complete as to conversion) 8,200 units

Beginning Work in Process Inventory Costs:

Material P24,500

8
 Conversion 68,905

Current Period Costs:

Material P 75,600
Conversion 130,053

12. How many units must be accounted for?

a. 128,200
b. 138,200
c. 130,000
d. 118,200

13. How many units were started and completed in the period?
a. 120,000
b. 111,800
c. 121,800
d. 130,000

14. What are the equivalent units for material using the weighted average method?
a. 120,000
b. 128,360
c. 130,000
d. 123,860

15. What are the equivalent units for material using the FIFO method?
a. 130,000
b. 125,500
c. 111,800
d. 120,000