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Midterm Exam P3004 Summer 2019
Midterm Exam P3004 Summer 2019
Midterm Exam P3004 Summer 2019
MIDTERM EXAMINATION
P3004 COST ACCOUNTING
SUMMER 2019
GENERAL INSTRUCTION: This is your test paper, write your answer on a separate test
booklet.
Test II. Identify whether the cost item is fixed or variable. Write FC if it is fixed cost and
VC if it is variable cost.
1. Rentals of Office Space.
2. Lumpia Wrapper in a lumpia production business.
3. Salaries of Laborers who work directly with the production of products.
4. Salaries of management personnel.
5. Transportation cost of raw materials purchased.
6. Insurance for building.
7. Permits and Licenses.
8. Labels for packaging.
9. Fuel for machineries used in production.
10. Depreciation of equipment.
Test III. Identify whether the cost item is direct or indirect. Write IC if it is indirect cost
and DC if it is direct cost.
1. Commission of resellers.
2. Depreciation of service vehicle.
3. Interest expense for loans.
4. Raw materials used in production.
5. Wages of laborers directly involved in production.
6. Rentals.
7. Taxes on sale of goods
8. Transportation in.
9. Containers of products sold.
10. 13th month pay of employees.
Test IV. Compute what is being asked for. Each item indicates the corresponding score.
1. The selling price per unit is P75.00 and the variable cost per unit is P25.00. What
is the contribution margin per unit? (5 points)
2. The rental fee per month is P7,500.00; Salaries of managers is P25,000.00 and
the depreciation per month is P2,500.00. What is the total fixed cost? (5 points)
3. The fixed cost of Madaya Halaya is P15,000.00 per month. It sells each product
at P45.00 and the variable cost per unit is P15.00.00. What is the breakeven
point? (10 points)
5. If Kulas Suka is selling its vinegar at P25.00 per bottle with variable cost of
P10.00 per bottle, it incurs total fixed cost of P7,500.00 per month. Assuming the
business sold 3000 bottles, what is the margin of safety? (15 points)
6. Refer to problem number 5. What will be the new breakeven point if the fixed
cost will increase to P10,000.00? (10 points)
7. Refer to proble number 4. What will be the new break even point if the variable
cost per unit will increase to P15.00? (10 points)
Prepared by:
DARWIN O. ANIAR
Course Instructor