1.

X Corp incurred the following cost for Job 101 for manufacture of 200 units: Direct materials of 660; Direct
labor of 800 and Overhead -applied at 1,200. OH was applied based on DL. 10 units were inspected as
defective and can be rework at cost of: Direct materials of 100 and Direct labor of 160. What is the unit cost per
finished unit of Job 101 delivered to customer if the rework was due to customer's specifications?
• 14.60
• 15.37
• 16.63
• 13.50
• None of the above (15.80)

1. Direct materials 660.00

Direct labor 800.00

Overhead applied 1,200.00

Add: Cost of Rework  

      Direct materials 100.00

     Direct labor 160.00

     Overhead applied (1,200 / 800) x 160 240.00

Total manufacturing cost 3,160.00

Divided by: Units produced 200.00

Unit cost per finished unit 15.80

2. X Corp incurred the following cost for Job 101 for manufacture of 200 units: Direct materials of 660; Direct
labor of 800 and Overhead -applied at 1,200. OH was applied based on DL. 10 units were inspected as
defective and can be rework at cost of: Direct materials of 100 and Direct labor of 160. What is the unit cost per
finished unit of Job 101 delivered to customer if the rework was due to internal failure?
• 13.30
• 14.00
• 15.80
• 14.50
• None of the above

2. Direct materials 660.00

Direct labor 800.00

Overhead applied 1,200.00

Total manufacturing cost 2,660.00

Divided by: Units produced 200.00

Unit cost per finished unit 13.30

3. X Corp produced 1,000 units of product X (1 unit has a weight of 1kilo). The company accumulated 1 kilo of
excess /small parts as a result of cutting process. The 1 kilo accumulated by X Corp has no sales value. The
cost to produce the 1,000 units is 100,000. What is the unit cost of finished unit of product? Assuming the 1 kilo
of small parts from cutting department is attributable to specific job.
• 10 per unit
• 99.90 per unit
• 100 per unit
• 1,000 per unit
• None of the above

3. Cost to produce 100,000.00

Divided by: Units produced 1,000.00

Unit cost of finished unit of product 100.00

4. The overhead rate computed by the company is 10 per DL hr (which excludes an allowance for normal
spoilage of 2 per DL hr). There are 1,000 units produced with DL cost of 10,000 (DL rate is 20 per DL hr). If
normal spoilage was due to customer's specification, what is the Overhead cost per unit?
• 5 per unit
• 10 per unit
• 10 per DL hr
• 20 per unit
• None of the above

4. Total direct labor cost 10,000.00

Divided by: Direct labor cost per hour 20.00

Direct labor hours 500.00

Multiply by: Overhead rate 10.00

Total overhead 5,000.00

Divided by: Units produced 1,000.00

Overhead cost per unit 5.00

5. X Corp had 3,000 units of WIP at April 1 which were 60% complete as to CC. During April, 10,000 units
were completed (completed means TO). At April 30, 4,000 units were remained which were 40% complete as
to CC. DM are added at start of process. How many units were started during April?
• 10,000
• 9,000
• 9,800
• 11,000
• None of the above
 Completed units 10,000.00

Add: Ending units 4,000.00

Total units 14,000.00

Less: Beginning units (3,000.00)

Units started in April 11,000.00

6. X Corp had 3,000 units of WIP at April 1 which were 60% complete as to CC. During April, 10,000 units
were completed (completed means TO). At April 30, 4,000 units were remained which were 40% complete as
to CC. DM are added at start of process. What is the EUP for DM under FIFO?
• 11,000
• 14,000
• 8,600
• 9,800
• 10,000
• None of the above

6. Beginning units (3,000 x 0%) 0.00

Started and completed (10,000 - 3,000) x 100% 7,000.00

Ending units (4,000 x 100%) 4,000.00

EUP for Direct Materials 11,000.00