1
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
Direct materials 50,000
Direct Labor 40,000
FO applied 30,000
Finished Goods 125,450
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
2
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
inventory of June 30; materials P3,000; direct labor P2,000; overhead P1,500.
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
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:
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
Materials
800
Wages payable
2,000
Manufacturing Overhead Control
1,000
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
