Pasig Catholic College

Accounting Quiz Cost Accounting

Multiple Choice Problems
1. The following cost relate to Kirstel Company for the quarter of the year.
Conversion cost
Direct materials
Manufacturing overhead
Selling and administrative expense

P 435,000
215,000
190,000
185,000

What is Kirstels prime cost for the last quarter?

a. P 460,000
b. P 410,000

c. P405,000
d. P375,000

2. For the year 2015 the gross margin of Jumbo Co. was P96,000, the cost of goods
manufactured was P340,000; the beginning inventories of work in process and finished
goods were P28,000 and P45,000, respectively; and the ending inventories of work in
process and finished goods were P38,000 and P52,000, respectively. The sales of Jumbo
Co. for 2015 must have been.
a. P419,000
b. P429,000

c. P434,000
d. P436,000

3. Some selected sales and cost data for Alcid Manufacturing Company are given below:
Direct materials used
P 100,000
Direct labor
150,000
Factory overhead (40% variable)
75,000
Selling and administrative expenses
( 50% direct, 60% variable )
120,000
Conversion cost was:
a. P150,000
b. P225,000

c. P250,000
d. P270,000

4. During the month of March 2014. Nape Co., used P300,000 of direct materials. At March
31, 2014. Napes direct materials inventory was P50,000 more than it was at March 1,
2014. Direct material purchases during the month of March 2014 amounted to:
a. P 0
b. P250,000

c. P300,000
d. P350,000

5. Peter Paul Company uses a job order cost system and applies factory overhead to
production orders on the basis of direct labor cost. The overhead rates for 2015 are 200%
for Dept. A and 50% for Dept. B. Job 123, started and completed during 2015 was
charged with the following costs.
Department
A
-----------------------P 25,000
?
40,000

Direct materials
Direct labor
Factory overhead

B
-----------------------P 5,000
30,000
?

The total manufacturing costs associated with Job 123 should be

a. P135,000
c. P195,000
b. P180,000
d. P240,000
6. March Company had 150 units of product on hand at January 1, costing P21.00 each.
Purchasing of product A during the month of January were as follows:
January 10
18
28

Unit
200
250
100

Unit Cost
P 22.00
23.00
24.00

Physical count on January 31, shows 250 units of product A on hand.

The cost of the inventory at January 31, under the FIFO method is:
a. P 5,850
b. P 5,550

c. P5,350
d. P5,250

7. Assume Boone Manufacturing had worked on two jobs, A-01 and A-02 last year 1,200
hours of direct labor was spent on Job A-01, while 1,000 hours of direct labor was spent
on Job A-02. The actual manufacturing overhead was P37,000.
The predetermined overhead rate for Boone Manufacturing is:
a. P 2.00 per unit
b. P 15.00 per DLH

c. P20.00 per DLH

d. P30.00 per DLH

8. Pocahontas Production Inc. has provided you with the following pertinent information for
the calendar year 2015.

Raw material purchases

Beginning raw material inventory
Ending raw materials inventory
Factory overhead ( including P85,000 of indirect
Labor and P20,000 of indirect materials)
Total manufacturing costs

P 135,000
100,000
175,000
277,500
960,000

Compute direct labor cost

a. P577,500
b. P382,500

c. P402,500
d. P642,500

9. M Company has two producing departments. Department A and Department B.

Department A works on raw material XYZ and then transfers it to Department B. After
Department B. puts on its finishing touches, it transfers the product to finished goods
inventory:
If Department A had put 95,000 units into process during the period and had ending
work in process of 21,000 units, what is the number of units transferred to finished goods
inventory, if Department Bs ending units in process are 12,000?
a. 104,000
b. 85,000

c. 74,000
d. 62,000

10. Department A is the first stage of Lovely Companys production cycle. The following
information is available for conversion cost for the month of May, 2015
Work in process, beginning (25% complete)
Started in May
Completed in May and transferred to Dept. B
Work in process, ending (60% complete)

UNITS
8,000
40,000
38,000
10,000

Using the FIFO method, the equivalent units for conversion costs for the month are
a. 42,000 units
b. 38,000 units

c. 44,000 units
d. 36,000 units