Escolar Documentos
Profissional Documentos
Cultura Documentos
4. G & G Company pays time and a half for hours in excess of 40 8. Using machine hours, how much overhead will be allocated
hours per week. An individual is paid P24.00 per hour and to the Deluxe?
worked 44 hours a week. The weekly earnings of the a. P34,286 c. 28,500
employee will amount to: b. P17,455 d. 29,544
a. P1,036 c. P1,032
b. P1,104 d. P960 9. Joint costs are those costs
a. of products requiring the services of two or more
5. Arnold Factory provides for an incentive scheme for its processing departments.
factory workers which features a combined minimum b. of a product from a common process that has
guaranteed wage of P875 per week and piece rate of P11.25. relatively little sales value and only a small effect on
Production report for the week show: profit.
Employee Units produced c. of production that are combined I the overhead
A 67 account.
B 78 C d. of two or more products produced from a common
80 process.
D 82
E 72
10. 2.The journal entry to record the requisition of materials for Prepaid Insurance 5,000
production in the amount of P90,000 and for indirect factory
use in the amount of P10,000 is c. Depreciation Expense P35,000
a. Work in Process P100,000 Insurance Expense 5,000
Materials P100,000 Factory Overhead Applied P40,000
35. In department 1 of the XYZ Company, the beginning and 40. The following information pertains to Lap Co.s Palo Division
ending in-process inventory were 2,000 units and 1,000 units, for the month of April:
respectively. The ending inventory is 40% complete. There Number of Units Cost of Materials
were 5,000 units started during the period. The cost Beginning work-in-process 15,000 P 5,650
expended for the current period were P7,500. The cost Started in April 40,000 18,000
expended last period attributable to the beginning inventory Units completed 42,500
of this period is P2,740. How much is the cost assigned per Ending work-in-process 12,500
equivalent unit of inventory? All materials are added at the beginning of the process. Using the
a. P1.50 c. P1.70 weighted-average method, the cost per equivalent unit for
b. P1.60 d. P1.75 materials is
a. P0.59 c. P0.45
36. Using the same info as in the previous item, how much is the b. P0.55 d. P0.43
cost assigned to ending inventory?
a. P10,240 c. P640 Next three (3) questions are based on the following data: ERIC
b. P540 d. P600 Corporation manufactures a product that gives rise to a by-
product called X. The only costs associated with the by-product
37. Using the same info as in the previous item, how much is the are selling costs of P1 for each unit sold. ERIC accounts for X sales
cost assigned to inventory transferred to next department? first by deducting its separable costs from such sales and then by
a. P10,240 c. P9,640 deducting this net amount from cost of sales of the major
b. P9,600 d. P6,000 product. This year, 1,000 units of X were sold at P4 each.
38. The following data pertain to a companys cracking- 41. If sales and cost of sales of ERIC are P50,000 and P17,000,
department operations in December: respectively, prior to adjustment for the by-products net
Units Completion
realizable value, how much is the gross margin of ERIC after a. P36,000 c. P41,333
adjustment b. P40,000 d. P50,000
a. P30,000 c. P29,000
b. P36,000 d. P37,000 48. Assuming Golden Foods does not adjust the joint cost for the
value of Charlie, the by-product, the joint cost to be allocated
42. If ERIC changes its method of accounting for X sales by to Beta using the net-realizable-value method is
recording the net amount as additional sales revenue, ERICs a. P30,000 c. P52,080
gross margin will b. P31,000 d. P62,000
a. Be unaffected. c. Decrease by P3,000
b. Increase by P3,000. d. lncrease by P4,000. 49. A job order costing system would probably be appropriate for
a firm that produces:
43. If ERIC changes its method of accounting for X sales by a. Automobiles.
recording the net amount as other income, ERICs gross b. Accounting Firm
margin will c. Video cassettes.
a. Be unaffected c. Decrease by P3,000. d. Microcomputers.
b. Increase by P3,000. d. Decrease by P4,000.
50. An industry most likely to use process costing is:
The next five (5) questions are based on the following data: a. Sugar Processing
Golden Foods produces three supplemental food products b. Textbook publishing.
simultaneously through a refining process costing P93,000. The c. Aircraft manufacturing.
joint products, Alpha and Beta, have a final selling price of P4 per d. Construction.
pound and P10 per pound, respectively, after additional
processing costs of P2 per pound of each product are incurred 51. When a manufacturing firm has a highly automated plant,
after the split-off point. Charlie, a by-product, is sold at the split- the most probable basis for applying manufacturing
off point for P3 per, pound. overhead costs to units produced would be:
a. Units produced. c. Direct labor cost.
Alpha: 10,000 pounds of Alpha, a popular but relatively rare grain b. Machine hours. D. Material cost.
supplement having a caloric value of 4,400 calories per pound.
52. Overapplied overhead would result when:
Beta: 5,000 pounds of Beta, a flavoring material high in a. Overhead costs budgeted for the period exceeds
carbohydrates with a caloric value of 11,200 calories per pound. actual overhead cost incurred.
b. Actual overhead costs incurred exceed overhead
Charlie: 1,000 pounds of Charlie, used as a cattle feed supplement applied to production.
with a caloric value of 1,000 calories per pound. c. Overhead applied to production exceeds actual
overhead costs incurred.
44. Assuming Golden Foods inventories Charlie, the by-product, d. The plant operated at fewer hours than were
the joint cost to be allocated to Alpha, using the net- budgeted.
realizable-value method is
a. P 3,000 c. P31,000 53. Partial or completed units of manufactured goods that do not
b. P30,000 d. P60,000 meet customer specifications and sell at reduced price or
simply discarded are called
45. Assuming Golden Foods inventories Charlie, the by-product, a. spoilage c. scrap
the joint cost to be allocated to Alpha, using the physical b. Rework d. equivalence
quantity method is
a. P 3,000 c. P31,000 54. In process and job costing system, normal spoilage cost is
b. P30,000 d. P60,000 considered as
a. conversion costs c. inventoriable costs
46. Assuming Golden Foods inventories Charlie, the by-product, b. sunk costs d. non inventoriable costs
the joint cost to be allocated to Beta using the weighted-
quantity method based on caloric value per pound is 55. An Unit cost is calculated in costing system by assigning total
a. P39,208 c. P50,400 costs incurred to many similar units is classified as
b. P39,600 d. P52,080 a. accounting period costing system
47. Assuming Golden Foods inventories Charlie, the by-product, b. process costing system
the joint cost to be allocated to Alpha using the gross market- c. job costing system
value method is d. none of above
56. Costing system which is a combination of process costing and
job costing system is classified as
a. weighted costing system
b. average costing system
c. hybrid costing system
d. double costing system