ReSA

The Review $choo} of Accountancy

R. Papa Cor. S. H- LoyoJ.a Sts- Sampal-oc, ManiJ.a
TeI Nos" z 734-39-89; 735-98-07
PRACTICAL ACCOUNTING PROBLEMS II Mul[iple Choice - Cost Accounting
(AICPA/ CMA/ CIA Adapted)
lob Order Costing
1. Paula C end of 2003 as follows: \2
c/:.').
Raw Materials s5,000 t jr
Work in Process
Finished s0,000 ),,\
,J!
t!_
Durinq 2003 the costs were
-ii: ''
Raw materials
Direct-labor oavroll (, ,.: J
Factorv overhead ?/u
r'J n
1rl ,
.Paula's cost of goods sold for 2003 was: -.--,; -'-
,a. P 921,000 c. P 966,000
b. 956,000
. l-r, , Gll
d. 979,000
iL.t .i,
.
2. Heth Comp any had{he following rnventones at the beginning and of [llrr"h ZOOS,

3-ruroo3----r@
Direct materials P 36.000 P 30.000
Work in process 18 000 12.000
goods
I Finished

The following additional manufacturing icsi data were available for the month of March
2003
Di rect matenals pu rc-lrased P 84.000
Drrect-labor payroll 60.000
Direct-labor rate per hour
Factory overhead rate per direct-labor hour 10.00

The cost of goods manufactured for March 2003 was.

a. P212,000 c. p230,000
b. 218,000 d. 236,000

Item 3 and 4-are based on the following datal

Leslie Company uses job-order costinE. Factory overhead is applied to production at a
predetermined rate of 150o/o of direct labor cost. Any over- or underapplied factory
overhead is closed to the cost of goods sold account at the end of each month. Additional
information is available as foltcws:
Job 101 was the only job in process at January 31 , with accumulated costs as follows.
Direct materials
2,000

Job 102, 103, and 104 were started during February.

Direct materials requisitions for February totaled P26,000.
Direct labor cost of P20,000 vuas incurred for February.
Actualfactory overhead was P32,000 for February.
The only job still in process cn'Febru ary 28 was Job 104, with costs of P2,800 for direct
materials and P1,800 for direct labor.
3. The cost of goods manufactured for FeLrruary was
a..P77,700 c. P79,700
b.. 78,000 d. 85,000

P2-CA