Divine Word College of Calapan

SCHOOL OF ACCOUNTANCY
LONG QUIZ 3 EXAMINATION
\
A.Y. 2020-2021 2nd SEMESTER

NAME: ______________________________________ SCORE: ________/RATING: _________

ID NUMBER: ________________________________ COURSE: __________________________

Dear God,
As I take my examination today, I am truly hoping that you will be my guide as I answer the questions.
I pray that You enlighten my mind and spirit so that I will not be hindered by any fear or worry.
Beyond these, I am thankful for all the blessings You give me and all the love that I feel from my family,
friends and people around me.
Please forgive me if I forget You specially when I am happy and when I just get to remember You to
blame when I am weary.
I know that with Your purest love, I am blessed; with your warm embrace, I am safe.
Dear Lord, I love You.
Amen.

INSTRUCTIONS:
Comply the following requirements WITH SOLUTION IN GOOD FORM.
Rounding-off during computation is discouraged. But for practical reasons, you may round-off to five (5)
decimal places during computation. Final answer should be rounded-off to two (2) decimal places only if
final answer necessitates decimal points (Monetary Amount, Percentage, etc). Whole number should be
answered to questions such as number of units and other indivisible things.
BOX your final answers.
Submit your answer in PDF file via LMS WITHIN THE TIME PERIOD.

1. Queue Company's Job 1234 for the manufacture of 2,200 coats was completed during May at the
unit costs presented below. Due to an internal failure in the production process, 200 coats were
found to be spoiled during final inspection that were sold to a jobber for P6,000.

Direct materials P20

Direct labor 18
Factory overhead 19
P57
What would be the unit cost of good coats produced on Job 1234?

2. During April, Eureka Company incurred the following costs on Job 567 for the manufacture of
200 motors:

Original cost accumulation:

Direct materials P 660
Direct labor 800
Factory overhead (150% of direct labor) 1,200
P 2,660
Direct costs of reworking 10 units:
Direct materials $100
Direct labor 150
$250
The rework costs were attributable to the exacting specifications of the customer. What is the cost
per finished unit of Job 567?
 Use the following information to answer the next four (4) items:
David Company produces two products, Product X and Product Y, and uses a costing system in
which all overhead is accumulated in a single cost pool and allocated based on machine hours.
David's management has decided to implement ABC because a cost study has revealed significant
amounts of overhead cost related to setup activity and design activity. The number of setups and
the number of design hours will be the activity drivers for the two new cost pools, and machine
hours will continue as the base for allocating the remaining overhead. Selected information
follows for David Company's most recent year of operations:

Product X Product Y Total

Units produced 500 15,500 16,000

Direct material cost:

Per unit P200 P20
Total P100,000 P310,000 P410,000

Machine hours 3,000 47,000 50,000

Direct labor cost P50,000 P350,000 P400,000
Setups 120 80 200
Design hours 6,000 4,000 10,000

Overhead:
Setup-related P250,000
Design-related 350,000
Other 900,000
Total overhead P1,500,000

3. Calculate the per-unit costs reported for Product X by the existing costing system.
4. Calculate the per-unit costs reported for Product Y by the existing costing system.
5. Calculate the per-unit costs reported for Product X by the ABC system.
6. Calculate the per-unit costs reported for Product Y by the ABC system.

Use the following information to answer the next four (4) items:
You have applied for a cost accounting position with Chelsea Containers. The company controller
has asked all candidates to take a quiz to demonstrate their knowledge of job order costing.
Chelsea’s job order costing system is based on normal costs, and overhead is applied based on
direct labor cost. Th e following information pertaining to May has been provided to you:

Job No. Direct Material Direct labor Applied Overhead Total Cost
67 P 35,406 P 13,840 P 15,916 P 65,162
69 109,872 14,480 16,652 141,004
70 2,436 4,000 4,600 11,036
71 308,430 57,000 ? ?
72 57,690 4,400 5,060 67,150

You are informed that Job #68 had been completed in April. You are also told that Job
#67 was the only job in process at the beginning of May. At that time, the job had been
assigned P25,800 for direct material and P7,200 for direct labor. At the end of May,
Job #71 had not been completed; all others were complete. Answers to the following
questions are required:
7. What is Chelsea Containers’ predetermined overhead rate?
8. What was the total cost of beginning Work in Process Inventory?
9. What were total direct manufacturing costs incurred for May?
10. What was cost of goods manufactured for May?

SUBJECT: Cost Accounting and Control TIME: ___________________ DAY: __________ Page2
 11. Ace Tool Company manufactures a product in two departments, Shaping and Assembly. The
product is processed first in the Shaping Department. Then, it is transferred to the Assembly
Department where component parts purchased from other vendors are added to the unit. A
process cost system with a FIFO cost flow assumption is used to account for work in process
inventories. Data related to November operations in the Assembly Department is as follows:

Units in beginning WIP (Stage of Completion: 90% materials, 80% labor and
overhead) 1,000
Units received from Shaping Department this period 3,000
Units transferred to Finished Goods this period 2,800
Units in ending WIP (Stage of Completion: 40% materials, 50% labor and overhead) 1,200

Costs charged to the department Beginning WIP Current Month

Costs from Shaping Department (Transferred-in) P236,000 P292,500
Materials 77,000 133,750
Labor 35,000 96,720
Overhead 49,000 166,160

Prepare a cost of production report for Assembly Department. (5 points)

12. Ace Tool Company manufactures a product in two departments, Shaping and Assembly. The
product is processed first in the Shaping Department. Then, it is transferred to the Assembly
Department where component parts purchased from other vendors are added to the unit. A
process cost system with a Weighted Average cost flow assumption is used to account for work in
process inventories. Data related to November operations in the Assembly Department is as
follows:

Units in beginning WIP (Stage of Completion: 90% materials, 80% labor and
overhead) 1,000
Units received from Shaping Department this period 3,000
Units transferred to Finished Goods this period 2,800
Units in ending WIP (Stage of Completion: 40% materials, 50% labor and overhead) 1,200

Costs charged to the department Beginning WIP Current Month

Costs from Shaping Department (Transferred-in) P236,000 P292,500
Materials 77,000 133,750
Labor 35,000 96,720
Overhead 49,000 166,160

Prepare a cost of production report for Assembly Department. (5 points)

***** End of Long Quiz 3 *****

SUBJECT: Cost Accounting and Control TIME: ___________________ DAY: __________ Page3