Shaina Camaganacan

BSA- 2nd Year

Cost Accounting

1. Cost of good sold is:

Answer: a. An expense
2. For manufacturing company, the cost of goods available for sale is during a given accounting
period is:
Answer: c. The sum of the above
3. Which of the following would not be classified as manufacturing overhead?
Answer: b. Direct materials
4. The wage of a timekeeper in the factory would classified as
Answer: c. Indirect labor
5. As current technology changes manufacturing processes, it is likely that direct
Answer: b. Labor will decrease

Problems:
1. For the month of March 2019, prime cost was
Answer: D. 150,000

Solution:
Direct Materials:
Direct Materials, beg. 36,000
Add: Direct Material Purchased 84,000
Less: Direct Mats- end (30,000)
Total Direct Materials 90,000
Direct Labor 60,000
Prime Cost P150,000

2. For the month of March 2019, conversion cost was

Answer: b. 140,000

Solution:
Direct Labor 60,000
Factory Overhead (60,000/7.50)x10) 80,000
Conversion Cost: P140,000

3. For the month of March 2019, cost of goods manufactured was

Answer: d. 236,000

Direct Materials used

Direct Materials, beg 36,000
Add: Direct Materials Purchase 84,000
Goods Available for Sale P120,000
Less: Direct Materials, end 30,000 90,000
Add: Direct Labor
Factory Overhead 80,000
Total Manufacturing Cost P230,000
Add: Work in process, beg 18,000
Cost of goods put into process P248,000
Less: Work in process, end 12,000
Cost of Goods Manufactured P236,000

4. The total amount of direct materials purchased during March was:

Answer: c. 180,000
5. The cost of goods manufactured during March 2019 was:
Answer: b. 388,000

Solution:
Direct materials
Direct Materials, beg 40,000
Purchases 180,000
Less: Direct Materials, end (50,000) 170,000
Add: Direct labor 120,000
Factory overhead 108,000
Manufacturing costs 398,000
Add: Work in process, beg. 25,000
Cost of Goods put into process 423,000
Less: Work in process, end (35,000)
Cost of Goods Manufactured 388,000
Add: Finished goods, beg 60,000
Goods available for sale 448,000
Less: Finished goods, end (70,000)
Cost of Goods Sold P 378,000

Reflection:

Donna Company
Cost of Goods Sold
For the month ended, May 31 2019

Direct Materials
Direct Materials, beg 124,000
Purchased Materials 107,800
Less: Direct Materials, end (115,000) 116,800
Direct Labor 160,000
Factory overhead 240,000
Manufacturing cost 516,800
Add: Work in process, beg 129,200
Cost of goods put into process 646,000
Less: Work in process, end (124,000)
Cost of good manufactured 522,000

Donna Company
Cost of Goods Manufactured
For the month ended, May 31 2019

Cost of goods manufactured 522,000

Add: Finished goods, beg 150,000
Goods available for sale 672,000
Less: Finished goods, end (122,000)
Cost of goods sold P 550,000