Quiz On Job Order Costing

The following T accounts are for Stanford Company:
Raw Materials Cost of Goods Sold

Beg. Bal. 7,000 | 24,000(2) |
(1)19,000 | |
| |
| |
| |
Sales Salaries Expense Work in Process

(4) 11,000 | Beg. Bal. 11,000 | ? (7)
| (2) 15,000 |
| (4) 18,000 |
| (6) 31,000 |
| |
Accounts Payable Manufacturing Overhead

| 19,000 (1) (2) 9,000 | 31,000 (6)
| 5,000 (5) (3) 16,000 |
| (4) 8,000 |
| (5) 5,000 |
| |
Wages & Salaries Payable Finished Goods

| 7,000 Beg. Bal. Beg. Bal. 18,000 |
| 37,000 (4) (7) 62,000 |
| End. Bal. 15,000 |
| |
Accumulated Depreciation—
Factory
| 82,000 Beg. Bal.
| 16,000 (3)
1. The indirect labor cost is:
a. P8,000.
b. P15,000.
c. P18,000.
d. P37,000.
2. The cost of goods manufactured is:

a. P82,000.
b. P64,000.
c. P71,000.
d. P62,000.
3. The cost of goods sold (after adjustment for under- or overapplied

overhead) is:
a. P58,000.
b. P69,000.
c. P72,000.
d. P65,000.
4. The manufacturing overhead applied is:

a. P24,000.
b. P31,000.
c. P38,000.
d. P42,000.
5. The cost of direct materials used is:

a. P14,000.
b. P15,000.
c. P18,000.
d. P24,000.
6. The ending Work in Process account balance would be:

a. P13,000.
b. P75,000.
c. P20,000.
d. P64,000.
Mallet Company has only Job 844 in process on March 1 of the current year. The job
has been charged with P2,000 of direct material cost, P2,500 of direct labor cost,
and P1,750 of manufacturing overhead cost. The company assigns overhead cost to
jobs at a predetermined rate of 70% of direct labor cost. Any under- or
overapplied overhead cost is closed to Cost of Goods Sold at the end of the month.
During March, the following activity and amounts were recorded by the company:
Raw materials (all direct materials):

Purchased during the month ..................... P29,500
Used in production ............................. P30,500
Labor:
Direct labor hours worked during the month ..... 2,500
Direct labor cost incurred ..................... P26,500
Indirect labor costs incurred .................. P5,500
Manufacturing overhead costs incurred (total) .. P18,500
Inventories:
Raw materials (all direct) March 31 ............ P7,500
Work in process, March 31 ...................... P14,500
Work in process inventory contains P5,500 of direct labor cost.
7. The amount of direct materials cost in the March 31 work in process

inventory account was:
a. P5,150.
b. P9,350.
c. P9,000.
d. P3,850.
8. The cost of goods manufactured for March was:

a. P67,300
b. P67,250
c. P81,800
d. P75,550
9. The entry to dispose of the under- or overapplied overhead cost for the
month would include:
a. a debit of P50 to Cost of Goods Sold.
b. a debit of P50 to Manufacturing Overhead.
c. a debit of P5,500 to Manufacturing Overhead.
d. a credit of P5,500 to Cost of Goods Sold.
10. The balance in the March 1 in the Raw Materials inventory was:
a. P10,500.
b. P9,500.
c. P6,500.
d. P8,500.
The Milo Company's records for May contained the following information:
Actual direct labor-hours ....... 9,000 hours

Actual direct labor cost ........ P 47,000
Direct material purchased ....... 16,000
Direct material used ............ 14,000
Cost of goods sold .............. 100,000
Overapplied overhead ............ 5,000
Ending inventories:
Raw materials ................. 30,000
Work in process ............... 50,000
Finished goods ................ 70,000
The company uses a predetermined overhead rate of P5.00 per direct labor hour to
apply manufacturing overhead to jobs.
11. The actual overhead cost incurred during the month was:
a. P50,000.
b. P55,000.
c. P40,000.
d. P45,000.
12. The total cost added to Work in Process during May was:
a. P101,000.
b. P106,000.
c. P61,000.
d. P111,000.
The information below has been taken from the cost records of Tercel Company for
the past year:
Raw materials used in production ......................... P326,000

Total manufacturing costs charged to jobs during
the year (includes raw materials, direct labor, and
manufacturing overhead applied at the rate of 60 per
cent of direct labor cost) ............................. 686,000
Cost of goods available for sale ......................... 826,000
Selling and administrative expenses ...................... 25,000
Inventories
Beginning Ending
Raw Materials ............. P75,000 P 85,000
Work in Process ........... 80,000 30,000
Finished Goods ............ 90,000 110,000
13. The cost of raw materials purchased during the year amounted to:
a. P411,000.
b. P360,000.
c. P316,000.
d. P336,000.
14. Direct labor costs charged to production during the year amounted to:
a. P135,000.
b. P225,000.
c. P360,000.
d. P216,000.
15. The Cost of Goods Manufactured during the year was:

a. P636,000.
b. P766,000.
c. P736,000.
d. P716,000.

Quiz On Job Order Costing

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The following T accounts are for Stanford Company:

Raw Materials Cost of Goods Sold

Sales Salaries Expense Work in Process

Accounts Payable Manufacturing Overhead

Wages & Salaries Payable Finished Goods

2. The cost of goods manufactured is:

3. The cost of goods sold (after adjustment for under- or overapplied

4. The manufacturing overhead applied is:

5. The cost of direct materials used is:

6. The ending Work in Process account balance would be:

Raw materials (all direct materials):

Manufacturing overhead costs incurred (total) .. P18,500

Work in process inventory contains P5,500 of direct labor cost.

7. The amount of direct materials cost in the March 31 work in process

8. The cost of goods manufactured for March was:

Actual direct labor-hours ....... 9,000 hours

Raw materials used in production ......................... P326,000

15. The Cost of Goods Manufactured during the year was:

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