Republic of the Philippines

BATANGAS STATE UNIVERSITY

LIPA CITY

MODULE IN COST ACCOUNTING

___________________________ _____________________________________________________________________

ANSWER KEY

TRUE OR FALSE

1. False 11. False

2. False 12. False
3. True 13. True
4. False 14. False
5. False 15. False
6. True 16. True
7. False 17. False
8. True 18. True
9. False 19. False
10. True 20. True

MULTIPLE CHOICE – THEORY

1. B 11. C
2. C 12. A
3. B 13. C
4. C 14. B
5. D 15. B
6. A 16. A
7. D 17. B
8. D 18. A
9. B 19. D
10. C 20. B
.

MULTIPLE CHOICE- PROBLEMS

1. A 11. A
2. B 12. B
3. C 13. B
4. C 14. C
5. B 15. B
6. A 16. A
7. C 17. B
8. C 18. D
9. A 19. A
10. C 20. A

COST ACCOUNTING – Cost Concepts and

Classification
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
LIPA CITY

MODULE IN COST ACCOUNTING

___________________________ _____________________________________________________________________

PROBLEM SOLVING

PROBLEM – Ram Corporation

1. A
2. C
3. A
4. B
5. C
6. C
7. A
8. C
9. C
10. C

PROBLEM – Classification I

1. Fixed
2. Variable
3. Mixed
4. Fixed
5. Fixed
6. Fixed
7. Mixed
8. Variable
9. Variable
10. Fixed

PROBLEM - Classification II

1. M
2. S
3. M
4. M
5. A

PROBLEM – Bug Company

(a) V or F (b) I or P
1. V I
2. F I
3. F I
4. V I
5. V I
6. F P
7. V I
8. V P
9. F P
10. V I

COST ACCOUNTING – Cost Concepts and

Classification
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
LIPA CITY

MODULE IN COST ACCOUNTING

___________________________ _____________________________________________________________________

PROBLEM – Kyrie Company

1.
Direct materials P50, 000
Direct labor 52, 000
Prime cost P102, 000

2.
Direct labor P52, 000
FO 95, 000
Conversion costs P147, 000

3.
Direct materials P 50,000
Direct labor 52, 000
Factory overhead 95, 000
Product costs P197, 000

PROBLEM – Mother Goose Company

1. Prime Cost - 430,000

2. Conversion Cost - 525,000
3. Inventoriable Cost - 710,000
4. Total Period Cost - 305,000

PROBLEM – Johnson Corporation

1. Variable cost per machine hour = 35,600-20,000

4,000 – 2,000
= 7.50 per machine hour

2. Total electricity expense 4,000 hours 2,000 hours

35,000 20,000
Less: Variable Cost
(4,000 x 7.50) 30,000
(2,000 x 7.50) 15,000
Fixed Cost 5,000 5,000

3. Fixed Cost 5,000

Variable Cost (6,000 x 7.50) 45,000
Total Manufacturing Cost 50,000

COST ACCOUNTING – Cost Concepts and

Classification
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
LIPA CITY

MODULE IN COST ACCOUNTING

___________________________ _____________________________________________________________________

PROBLEM – Valdez Motors Co.

1. Variable cost per machine hour = 5,475 – 3,975

210-145
= 23.08 per machine hour
2. 210 hours 145 hours
Total overhead costs 5,475 3,975
Less: Variable Costs
(210 x 23.08) 4,847
(145 x 23.08) 3,347
Fixed Cost 628 628

COST ACCOUNTING – Cost Concepts and

Classification