CENTRAL MINDANAO UNIVERSITY

COLLEGE OF BUSINESS AND MANAGEMENT AC 54 – Cost Accounting

DEPARTMENT OF ACCOUNTANCY Cost Accounting Cycle – Post Test
Prepared by: JOHN PAUL ROSARIO, REA, CPA
Name: _________________________________________ Date: ____________________ Score: _________________

Open Ended: Provide the items asked

PROBLEM 1: Use the following information for questions a – n (1 -14).
Manufacturing costs for Nicole Company for selected months are as follows:
May August November
Beginning work in process P 80,000 P (f) P 98,000
Direct materials used 280,000 190,000 155,000
Direct labor 195,000 170,000 (j)
Factory overhead (a) 150,000 90,000
Total manufacturing costs 725,000 510,000 380,000
Total cost of goods put into process (b) 540,000 (k)
Ending work in process 95,000 (g) (l)
Cost of goods manufactured (c) 475,000 385,000
Beginning finished goods (d) 38,000 (m)
Cost of goods available for sale 830,000 (h) 460,000
Ending finished goods (e) 75,000 (n)
Cost of goods sold 720,000 (i) 355,000

Compute for the missing items:

______________________a. ______________________h.
______________________b. ______________________i.
______________________c. ______________________j.
______________________d. ______________________k.
______________________e. ______________________l.
______________________f. ______________________m.
______________________g. ______________________n.

PROBLEM 2: Use the following information for questions 15 to 20.

Some selected sales and cost data for Alcid Manufacturing Company are given below:
Direct materials used P100,000
Direct labor 150,000
Factory overhead (40% variable) 75,000
Selling and administrative expenses
(50% direct, 60% variable) 120,000

QUESTIONS:
______________________15. Prime cost was
______________________16. Conversion cost was
______________________17. Direct cost was
______________________18. Indirect cost was
______________________19. Product cost was
______________________20. Variable cost was

PROBLEM 3: Individual problems

Given the following information:
Finished goods beginning P26,000
Finished goods ending 37,000
Cost of goods manufactured 127,000
______________________21. What is the cost of goods sold?

Given the following information:

Direct labor cost incurred P250
Direct materials used 110
Beginning work in process 50
Ending work in process 300
Finished goods completed 170
______________________22. Calculate the manufacturing overhead incurred for F&B Co

During 2019, there was no change in either the raw material or work in process beginning and ending inventories. However, finished goods, which had a
beginning balance of P25,000, increase by P15,000.
______________________23. If the manufacturing costs incurred totalled P600,000 during 2019, the goods available for sale must have been

During the month of May 2019, Candid Manufacturing Co. incurred P30,000, P40,000, and P20,000 of direct materials, direct labor and factory overhead
costs, respectively.
______________________24. If the cost of goods manufactured was P95,000 in total and the ending work in process inventory was P15,000, the beginning
inventory of work in process must have been

The gross margin for Cruise Company for 2019 was P325,000 when sales were P700,000. The FG inventory, beg. was P60,000 and the FG inventory, end
was P35,000
______________________25. The cost of goods manufactured was

MCQ – Theory
______26. If the amount of “Cost of goods manufactured” during a period exceeds the amount of “Total manufacturing costs” for the period, then (choose
which statements is/are true)
Statement 1: Ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory
Statement 2: Ending work in process is greater than the amount of the beginning work in process inventory
Statement 3: Ending work in process is equal to the cost of goods manufactured
Statement 4: Ending work in process is less than the amount of the beginning work in process inventory
a. All are true
b. only three statements are true
c. only two statements are true
d. only one statement is true

______27. A manufacturing company reports cost of goods manufactured as

a. a current asset on the balance sheet
b. an administrative expense on the income statement
c. a component in the calculation of cost of goods sold
d. a component of the raw materials inventory on the balance sheet

______28. Sales commissions are classified as

a. prime costs
b. period costs
c. product costs
d. indirect labor

______29. The was of a timekeeper in the factory would be classified as

a. prime cost
b. direct labor
c. indirect labor
d. administrative expense

______30. For a manufacturing company, the cost of goods available for sale during a given accounting period is
Statement 1. The beginning inventory of finished goods
Statement 2. The cost of good manufactured during the period
Statement 3. The sum of the above
Statement 4. Equal to the beginning inventory of finished goods if ending inventory is zero
Statement 5. Equal to the cost of goods manufactured during the period if beginning inventory of finished goods is zero

a. None is true
b. only one is false
c. only two is false
d. only three is false
e. only four is false