Name: Prelims Quiz No.

Write the letter of your answer on the space before the number.

1. The following costing system use predetermined application rate for manufacturing overhead, except
a. Normal Costing c. Actual Costing
b. Standard Costing d. None of the choices
2. The following terms are used in exchange for the term factory overhead, except
a. Manufacturing overhead c. factory burden
b. Indirect materials d. factory expenses
3. The following are prime costs, except
a. Assembly costs in a toy company c. rubber in a rubber band
d. Salary of factory guard in a lens company d. none of the choices
5. It refers to the costs system where cost of products are accumulated by jobs. This system is applicable for unique
products that produces normally in small quantity.
a. Normal costs system c. Job order costs system
b. Standard costing system d. Process costing system
4. The following are the steps in typical cycle of operations of firm using job order costs system, except
a. Procurement b. Warehousing c. Selling d. None of the choices
5. It refers to the moving of goods from the factory to the warehouse to be held until they are sold.
a. Procurement b. Warehousing c. Selling d. None of the choices
6. If manufacturing costs and cost of goods manufactured are the same
a. the work-in-process beginning is higher than work-in-process ending
b. the work in process beginning is lower than the work in process ending
c. the work in process beginning and work in process ending are the same
d. None of the choices
9. During application of manufacturing overhead, which of the following is incorrect?
a. Work-in-process is debited for the amount of application
b. Manufacturing overhead control is credited for the amount of application
c. Work-in-process is debited for actual amount
d. Manufacturing overhead control is debited for the amount of application
10. Job order cost system and process cost system differ in the way
a. Manufacturing costs are assigned to production runs and the number units for which costs are averaged
b. Orders are taken and the number of units in the orders
c. Product profitability is determined and compared with planned costs
d. Manufacturing processes can be accomplished and the number of production runs that may be performed in a
year
11. A company services office equipment. Some customers bring their equipment to the company’s service shop; other
customers prefer to have the company’s service personnel come to their offices to repair their equipment. The most
appropriate costing method for the company is
a. Job-order costing system c. activity-based costing system
b. Process costing system d. operation costing system
12. The document used to accumulate cost of job orders is termed as
a. Job-order sheet b. Job-cost sheet c. Invoice d. Requisition order
13. Many companies recognize three major categories of costs of manufacturing a product. These are direct materials,
direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile
a. The cost of small tools used in mounting tires on each automobile
b. The cost of tires in each automobile
c. The cost of the laborers who place tires on each automobile
14. Examples of factory overhead costs are
a. lubricants for factory machinery c. Both of the preceding choices
b. depreciation of the factory machinery d. None of the choices
15. For manufacturing company, which of the following is an example of period costs?
a. depreciation of factory equipment c. wages of salesperson
b. wages of machine operators d. insurance on factory equipment
Use the following information to answer the next three questions:
The following costs relate to Antonio industries for the last quarter:
Conversion Cost P435,000
Direct Materials P215,000
Manufacturing Overhead P190,000
Selling and administrative expenses P185,000
`16. What is Antonio’s prime costs for the last quarter?
a. P460,000 b. P410,000 c. P405,000 d. P375,000
17. Antonio’s total manufacturing costs is
a. P460,000 b. P645,000 c. P650,000 d. P840,000
18. Antonio’s total period costs is
a. P185,000 b. P275,000 c. P400,000 d. P620,000
Use the following information to answer the next two questions:
Justine Company produced 5,500 outdoor chairs for Job Order No. 610. Total material cost was P51,700. Each chair
required 2.2 hours of direct labor at P8.90/hour. A total of P53,845 of factory overhead was traced to order 610.
19. What is the prime costs per unit of this order?
a. P19.58 b. P28.98 c. P29.37 d. P38.77
20. What is the conversion costs per unit of this order?
a. P19.58 b. P28.98 c. P29.37 d. P38.77
Use the following information to answer the next three questions
A manufacturing company shows the following amounts in the cost of goods sold statement and income statement for
the year 2016
January 1, 2016 December 31, 2016
Materials P100,000 P150,000
Work in process P87,000
Finished goods P80,000
Materials used P590,000
Cost of Goods Sold P750,000
Cost of Goods P800,000
Manufactured
Total Manufacturing cost P790,000
21. How much is the work in process in January 1, 2016?
22. How much is the finished goods inventory in December 31, 2016
23. How much is the amount of materials purchased during 2016?
24. Cost of goods sold is
a. an expense b. a period cost c. is an asset d. None of the choices
25. For a manufacturing company, the cost of goods available for sale during a given period is
a. the beginning inventory of finished goods
b. the costs of good manufactured during the period
c. the sum of the above
d. the difference choices a and b
26. The wage of a timekeeper in the factory would be classified as
a. prime costs b. direct labor c. indirect labor d. administrative expenses
27. As current technology changes manufacturing processes, it is likely that
a. direct labor will increase c. conversion costs will decrease
b. indirect material will decrease d. prime cost will increase
28. A manufacturing company reports costs of goods manufactured as
a. a current asset on the balance sheet
b. an administrative expense on the income statement
c. a component in the calculation of costs of goods sold
d. a component of raw materials inventory on the balance sheet
29. In C Company, the predetermined overhead rate is 80% of direct labor cost. During the month, C incurs P210,000 of
factory labor costs, of which P200,000 is direct and the remaining is indirect. Actual overhead incurred was P200,000. The
amount of overhead debited to Work-in Process account must be
a. P200,000 b. P144,000 c. P168,000 d. P160,000
30. Using the information in the previous number, the amount of overapplied or underapplied overhead is
a. 40,000 underapplied c. 56,000 underapplied
b. 32,000 underapplied d. None of the choices
31. The following information was taken from Jeric Company’s accounting records for the year-ended December 31, 2016
Increase in raw materials inventory P25,000
Decrease in finished goods inventory P45,000
Raw materials purchased P450,000
Direct labor payroll P200,000
Factory overhead P300,000
There was no work-in process inventory at the beginning and at the end of the period. The costs of goods sold amounts
to
a. P950,000 b. P925,000 c. P975,000 d. P995,000
32. Using the information in the previous number, how much is the cost of goods manufactured
a. P950,000 b. P925,000 c. P975,000 d. none of the choices
Use the following information to answer the next three questions:
M Company has the following information for the month of March 2016

March 1 March 31
Materials P40,000 P50,000
Work in Process P25,000 P35,000
Finished Goods P60,000 P70,000
Direct labor costs P120,000
Factory overhead applied P108,000
Cost of goods sold P378,000
33. The total amount of direct materials purchased during the month is
a. P50,000 b. P170,000 c. P180,000 d. P220,000
34. The cost of goods manufactured during March 2016 was
a. P378,000 b. P388,000 c. P398,000 d. P428,000
35. If the actual manufacturing overhead amounts to P107,900, how much is the underapplied or overapplied factory o
overhead?
a. P100 overapplied b. P100 underapplied c. none of the choices
Use the following information to answer the next two questions
U Company developed the following data for the current year.
Work in process inventory, January 1 P40,000
Direct materials used P24,000
Actual factory overhead P48,000
Applied factory overhead P36,000
Cost of goods manufactured P44,000
Total manufacturing costs P120,000
36. U Company’s direct labor cost for the year is
a. P12,000 b. P60,000 c. P36,000 d. P48,000
37. U Company’s work in process inventory on December 31 is
a. P116,000 b. P80,000 c. P76,000 d. P36,000
38. How much is the under or over applied overhead?
a. 12,000 overapplied b. 12,000 underapplied c. 8,000 overapplied
39. Determine the sales for the year.
Gross profit P280,000
Ending inventory P120,000
Goods available for sale P180,000
a. P300,000 b. P340,000 c. P400,000 d. P460,000
40.Under job-order costs system, issuances of materials are debited to
a. Factory Overhead Control c. Work in process control
b. Materials Control d. None of the choices
41. In job order costs system, what journal entry should be made for the return to the stockroom of direct materials
previously issued to production for use on a particular job?
a. debit Materials and credit factory Overhead
b. debit Materials and credit Work in Process
c. debit Purchase Returns and credit Work in Process
d. debit Work in Process and credit Materials
42. The most common treatment of under or overapplied overhead is to close it to
a. Work in Process c. Retained Earnings
b. Costs of Goods Sold d. Finished Goods
43. Which of the following production operations would be most likely to employ a job order cost system of cost
accounting?
a. Toy manufacturing c. Shipbuilding
b. Crude oil refining d. candy manufacturing
44. A material requisition form normally does not contain which of the following?
a. Vendor’s name b. Quantity requisitioned c. unit cost d. job number
45. Overhead applied was P120,000, while actual overhead was 124,000. Which of the following is always true of the
above?
a. Direct labor activity was overestimated c. Overhead was underapplied by P4,000
b. Overhead was overapplied by P4,000 d. The difference must be reported as a loss
46. Cost of raw materials are debited to Raw Materials Inventory when
a. the materials are ordered c. the materials are received
b. materials are put into production d. the bill for materials are paid
47. D Company’s 2016 manufacturing costs were as follows
Direct materials and direct labor P100,000
Depreciation of manufacturing equipment P70,000
Depreciation of manufacturing building P40,000
Janitor’s wages for cleaning factory premises P15,000
How much of these of costs should be inventoried for external purposes?
a. P225,000 b. P210,000 c. P385,000 d. P200,000
Use the following information for the next two questions
D Company uses a job order accounting system. Overhead is applied to production at a predetermined rate of 80% based
on direct labor costs. The following posting appear in the ledger accounts of the company for the month of September.
Work in Process, beginning P30,000
Direct materials P60,000
Direct labor P50,000
Factory overhead P40,000
Costs of jobs completer P155,000
Job No 327 was the only job not completed in September, and it has been charged P4,600 for factory overhead.
48. Direct materials charged to Job No. 327 was
a. P10,350 b. P14,650 c. P20,000 d. P25,000
49. Direct labor charged to Jaob 327 was
a. P5,750 b. P6,748 c. P8,280 P8,480
50. M Company had 150 units of product on hand at January 1 costing P21.00 each. Purchases of product A during the
month of January were as follows:

Units Unit cost

January 10 200 22.00
January 18 250 23.00
January 28 100 24.00
Physical count on January 31 shows 250 units of Product A on hand.
The cost of the inventory at January 31, under the FIFO method is
 a. P5,850 b. P5,550 c. P5,350 d. P5,250
51. The C Company uses 20,000 units of Material A in making a finished product. The costs to place an order for Material
A is P8.00 and the annual cost to carry one Material A is P2.00. The economic order quantity for material A is
a. 100 units b. 400 units c. 283 units d. 565 units
52. Using the same information in the previous number, if the cost to place one order increased by P10 and the costs to
carry one Material A in stock remains the same, the economic order quantity will be
a. 600 units b. 447 units c. 425 units d. 500 units