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BSIE Cost Accounting
BSIE Cost Accounting
BSIE Cost Accounting
MID-TERM EXAMINATION
COST ACCOUNTING
SY 2019-2020
Roman Company uses normal costing. Its job costing system has two direct-cost categories (direct materials and direct labor) and one
indirect cost category (manufacturing overhead). The following information is obtained from the company’s records for 2018:
Total manufacturing costs, P8,000,000
Cost of finished goods manufactured, P7,920,000
Manufacturing overhead applied, P3,600,000
Manufacturing overhead was applied to production at a rate of 200% of direct labor costs.
The peso amount of work in process inventory on January 1, 2014 was P320,000
Sweet Company use normal costing in its job order costing system. Partially completed T-account and additional information for the
year 2018 follows:
24. What was the amount of direct materials issued to production during 2018?
a. P350,000 c. P360,000
b. P380,000 d. P390,000
25. What was the amount of manufacturing overhead applied to jobs during 2018?
a. P450,000 c. P460,000
b. P480,000 d. P360,000
26. What was the cost of jobs completed during 2018?
a. P940,000 c. P950,000
b. P900,000 d. P930,000
27. What was the balance of work in process inventory on December 31, 2018?
a. P300,000 c. P310,000
b. P250,000 d. P320,000
28. What was the cost of goods sold before adjustment for over or underapplied overhead?
a. P910,000 c. P850,000
b. P900,000 d. P950,000
29. What was the under-overapplied manufacturing overhead in 2018?
a. P50,000 c. P70,000
b. P60,000 d. P80,000
30. What is the operating income (loss) for 2018 assuming the under or overapplied is closed to cost of goods sold?
a. (P10,000) c. (P20,000)
b. P10,000 d. P20,000
31. What is the operating income (loss) for 2018, assuming the under or overapplied overhead is prorated to Work in Process,
Finished Goods and Cost of Goods sold?
a. (P6,800) c. P6,800
b. (P8,600) d. P8,600
Use the following data in answering 32 to 35:
Settler Company sells a number of products to many restaurants in the area. One product is a special meat cutter with a disposable
blade. Blades are sold in a package of 12 at P20 per package. It has been determined that the demand for the replacement blades is at
a constant rate of P2,000 packages per month. The packages cost the company P10 each from the manufacturer and require a three-
day lead time from date of order to date of delivery. The ordering cost is P1.20 per order, and carrying cost is 10% per year. The
company uses the economic order quantity formula.
37. What is the amount of fixed cost per month using least square regression analysis?
a. P700 c. P345
b. P355 d. P115
38. What is the amount of variable cost rate using least square regression analysis?
a. P0.1015 c. P0.1091
b. P0.1020 d. P0.1100
39. What is the amount of fixed cost per month using Hi-low method?
a. P709 c. P600
b. P345 d. P291
40. What is the amount of variable cost rate using Hi-low method?
a. P0.1015 c. P0.1000
b. P0.1091 d. None of the choices
Use the following information in answering 41 to 46
Cost data on the activities of Columbia Manufacturing for May are as follows:
April 30 May 31
Account Balances:
Finished Goods 45,602 ?
Work in Process 60,420 52,800
Direct Material 10,250 12,700
Indirect Material 5,600 5,180
Transactions in May:
Supplies purchaseed 16,500
Cost of goods sold 280,000
Raw materials purchased 105,000
Indirect Labor 22,000
Factory hear, light, and power 11,220
Factory rent 18,500
Factory insurance 2,000
Sales commission 48,000
Administrative expenses 25,000
Production supervisor's salary 5,000
Valleydale Company incurred the following costs during the month: direct labor, P120,000, overhead, P108,000; and direct material
purchases, P160,000. Inventories were costed as follows:
Beginning Ending
Finished Goods 27,000 26,000
Work in Process 61,500 57,500
Direct Materials 37,500 43,500