Interworld Colleges Foundation Inc.

Burgos St, Paniqui,Tarlac

COLLEGE OF BUSINESS AND ACCOUNTANCY

NAME: Date:
Professor: Section: Score:

Cost Accounting
FINAL GRADING EXAMINATION

THE EXAM IS GOOD FOR ONE AND A HALF HOUR ONLY. FAILURE TO SUBMIT ON TIME WILL BE GIVEN
DEDUCTION ON EVERY MINUTE PASSED.

1. The following data for December were taken from the cost records of mixing department. Air
manufacturing company which uses the average costing method.
Cost:
Work in process, December 1;
Materials P24,000
Labor 15,000
Factory Overhead 7,600
Work in process, December 1 ( all material, 50% converted) 1,000 units
Put into process during the month 10,000 units
Work in process, December 31 (all material, 60% converted) 1,400 units
Cost during the month:
Material P251,000
Labor 193,800
Factory overhead 149,000

Required: Prepare a cost of production report (50 points)

2. The bird company uses Job order cost system. The following debits (credit) appeared in the
books work in process account for the month of December 2021:

December Description Amount

1 balance P4,000
31 Direct Materials 24,000
31 Direct Labor 16,000
31 Factory overhead 12,800
31 to finished goods (48,000)

Bird company applies overhead to production at a predetermined rate of 80% of direct

labor cost. Job no. 5 the only job still in process on December 31 , has been charged with direct
labor of P2,000. What was the amount of Direct materials charged to Job. No.5? (25 points)
3. Breeze company materials purchases during December totaled P110,000 and the Cost of Goods
Sold during the month was P345,000. Factory overhead was 50% of direct labor cost .

Inventories were as follows:

December 1 December 31
Finished goods 102,000 105,000
Work in process 70,000 66,000
Materials 30,000 36,000

What is the cost of Direct labor charged to work in process? (25 points)