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Material
Labor
Overhead
Put in Process
Material
Labor
4,000 units
Completion
(%)
All
50
50
Cost
P1,992
1,074
846
20,000
units
P12,000
9,984
100% of
Labor
Overhead
Units completed and
21,000
transferred
units
In process at the end
3,000 units
Material
All
Labor
60
Overhead
60
22.The production equivalent for material is
Weighted Average FIFO
A. 24,000
20,000
B. 20,000
21,000
C. 20,000
24,000
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D. 21,000
20,000
23.The production equivalent for labor and overhead is
Weighted Average FIFO
A. 21,000
20,800
B. 24,000
22,800
C. 22,800
20,800
D. 21,000
21,000
24.The total cost of the work in process at the end is
Weighted Average FIFO
A. P3,577
P3,500
B. P3,477
P3,528
C. P3,528
P3,477
D. P3,500
P3,577
25.What is the entry to record manufacturing costs incurred during September?
A. WIP Assembly Department 31,968
Materials
12,000
Payroll
9,984
Applied Overhead
9,984
B. WIP Assembly Department 35,880
Materials
13,992
Payroll
11,058
Applied Overhead
10,830
C. Materials
12,000
Payroll
9,984
Applied Overhead
9,984
WIP Assembly Department
31,968
D. Materials
13,992
Payroll
11,058
Applied Overhead
10,830
WIP Assembly Department
35,880
E. WIP Assembly Department 3,912
Materials
1,992
Payroll
1,074
Overhead
846
For items 26 -27:
26.For the month of May 2014, the Finishing department, the last department of the process,
of BCD Inc. had in opening work in process 80% complete units and in ending work in
process 50% complete units. Related data for the month:
Units
Conversion Cost
Work in process, May 1
50,000
P88,000
Units started and costs incurred during May 270,000
572,000
Units completed and transferred during May 200,000
May
If the company uses FIFO costing, the conversion cost of the work in process at the end of
would be how much?
A. P132,000
C. P176,000 E. P163,428
B. P156,000
D. P254,000
27.The entry to record the transfer of completed units from the finishing department would
include:
Debit
Credit
A. WIP-Finishing Dept
Finished Goods
B. Cost of Goods Sold
WIP Finishing Dept
C. Finished Goods
WIP Finishing Dept
D. WIP Finishing Dept
Cost of Goods Sold
For items 28 -29:
28.At the CDE Industrial Co., the process begins with the blending of various chemicals and
ends with the canning of the paint after which the gallon cans are sent to the Shipping
Dept. for packing and crating. Direct labor and overhead are continuously added during
processing. Overhead is applied at the rate of P30 per direct labor hour. After blending,
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completed units are transferred to the Heating Department. Data for the month of October
in the Blending Dept:
Physical units:
Work in process, beginning inventory
4,000 gallons
Raw materials chemicals (7% complete)
Direct labor (25% complete)
Overhead (25% complete)
Started in process
21,000 gallons
Completed and transferred
20,000 gallons
Work in process, ending inventory
Raw materials chemicals (100% complete)
Cost:
Work in process, beginning inventory
Raw materials chemicals
P456,000
Direct labor (P100 per hour)
32,500
Overhead
?
Current Costs
Raw materials chemicals
P2,284,000
Direct labor (P100 per hour)
320,000
Overhead
?
Using the weighted-average method, the cost of raw materials-chemicals in the work in
process ending inventory was how much?
A. P438,400
C. P571,000
B. P548,000
D. P687,000
29.What is the entry to record the transfer of completed goods from the blending department
assuming the company uses the weighted-average method?
A. Finished Goods
2,597,750
WIP Blending Department
2,597,750
B. WIP Blending Department
2,597,750
WIP Heating Department
2,597,750
C. WIP Heating Department
2,597,750
WIP Blending Department
2,597,750
D. WIP Blending Department
2,580,000
WIP Heating Department
2,580,000
E. WIP Heating Department
2,580,000
WIP Blending Department
2,580,000
For items 30 33:
EFG Manufacturing Co. makes a single product in two departments. The production department
for Dept.2 for May 2014 follows:
Quantities:
In process, May 1 (40% done)
4,000 units
Received from Dept.1
30,000 units
Finished and Transferred
25,000 units
In process, May 31, (60% done)
6,000 units
Production Costs
May 1
Current
Transferred In
P16,300
P89,100
Materials
3,800
67,500
Conversion cost
1,940
81,000
Materials are added at the start of the process, and losses normally occur during the early
stages of the operation.
30.How much is the cost of the ending work in process inventory using weighted average?
A. P44,640
C. P46,800
B. P45,600
D. P51,680
31.How much is the cost of goods manufactured suing the first-in first-out?
A. P187,250
C. P195,250
B. P193,040
D. P214,040
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32.How much is the total unit cost per EUP using FIFO?
A. P5.50
C. P5.20
B. P8.80
D. P8.60
33.I. The entry to record the cost incurred during May is:
WIP-Dept2 154,240
Materials
71,300
Conversion Cost
82,940
II. Using weighted-average, the entry to record goods completed is:
Finished Goods
215,000
WIP Dept2
215,000
A. Only Statement I is false
B. Only Statement II is false
C. Both statements are false
D. Neither of the statements is true
For items 34 and 35:
34.FGH Products transferred 40,000 units to one department; 20,000 units were in beginning
inventory in that department. At the end of the month, 30,000 units were transferred out
to the next department, 16,000 units remained in work in process, 40% complete as to
conversion costs and the remaining units were lost at the 75% stage of conversion.
Beginning inventory was 60% complete as to conversion costs and lost units were the
result of internal failure. What is the equivalent units of conversion cost using FIFO
costing?
A. 24,400
C. 18,200
B. 17,450
D. 34,900
35.The cost of the lost units in the cost production report will be charged to:
A. Finished and Transferred Only
B. Ending Inventory Only
C. Both finished and transferred and ending inventory
D. Neither of the finished and transferred and ending inventory
36.GHI Manufacturing Co.s second department received 30,000 units. There were 10,000
units during the start of the month in that department. At the end of the month, 24,000
units were transferred out to the 3rd department, 12,000 units remained in work in
process, 40% complete as to conversion costs and the remaining units were lost at the
75% stage of conversion. Beginning inventory was 60% complete as to conversion costs,
and lost units were the result of normal production shrinkage. What is the equivalent units
of conversion cost using FIFO?
A. 11,400
C. 26,800
B. 22,800
D. 14,400
For items 37 - 38:
37.HIJ Inc. instituted a new process in January. During January, 20,000 units were started in
Department A. Of the units started, 2,000 were lost in the process due to normal
production shrinkage, 14,000 were transferred to Department B, and 4,000 remained in
work in process at January 31. The work in process at January 31 was 100% complete as to
material costs and 50% complete as to conversion costs. Material costs of P54,000 and
conversion costs of P80,000 were charged to Department A in January. What were the total
costs transferred to Department B?
A. P134,000
C. P56,000
B. P99,960
D. P112,000
38.How much is the recorded cost of the normal spoilage in the cost production report?
A. P5,400
C. P16,000
B. P14,280
D. 0
For items 39 -40:
IJK Industries manufactures a series of three models of molded plastic chairs: standard (without
arms), deluxe (with arms), and executive (with arms and padding). All are variations of the same
design. The company uses batch manufacturing and has a hybrid costing system. It has an
Page 6 of 8
extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets
are produced by the extrusion operation, some of which are sold directly to other manufacturers.
During the forming operation, the remaining plastic sheets are molded into chair seats and the
legs are added; the standard model is sold after this operation. During the trim operation, the
arms are added to the deluxe and executive models, and the chair edges are smoothed. Only the
executive model enters the finish operation where the padding is added. All units produced
receive the same steps within each operation.
The July production run had a total manufacturing cost of P1,796,000. The units of production
and direct material costs incurred were as follows:
Units
Extrusion
Form
Produced Materials
Materials
Plastic sheets
5,000 P120,000
Standard Model 6,000
144,000
P48,000
Deluxe Model
3,000
72,000
24,000
Executive Models 2,000
48,000
16,000
Totals
16,000
P384,000
P88,000
Trim
Materials
Finish
Materials
P18,000
12,000
P30,000
P24,000
P24,000
Direct Labor
Factory Overhead
Extrusion
Operation
P304,000
480,000
Form
Operation
P120,000
144,000
Trim
Operation
P60,000
78,000
Finish
Operation
P36,000
48,000
Plastic Sheet
Standard Model
P73
P32
P36.50
P52.50
P12
P16
P24
P32
P73
P105
Deluxe Model
Executive Model
P33.60
P54
P69.30
P96.30
P19
P25
P38
P50
P138.60
P192.60
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11. __________
21. __________
31. _________
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39. _________
10.________
20. __________
30. __________
40. _________
INSTRUCTIONS:
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