Set A - Costquiz 4
Set A - Costquiz 4
Quiz 4/Activity 3
Cost Accounting (AC9)
Name________________________________________ Date_____________
1. Under perpetual inventory system, the purchase of materials is recorded in the account
a. Purchases
b. Work in Process Inventory
c. Raw Materials inventory
d. Finished Goods Inventory
3. The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the items included in orders is
a. purchasing costs
b. ordering costs
c. stockout costs
d. carrying costs
6. The company has been ordering more than the economic order quantity. This would result in
a. More frequent orders
b. Carrying costs less than order cost
c. Carrying cost greater than order cost
d. Equal safety stock costs and carrying costs
10. In the period of rising prices, what effect would the use if FIFO has on the Cost of Goods Sold of the company?
a. No effect
b. Cost of Goods Sold increases
c. Cost of Goods Sold decreases
d. Cannot be determined
Part 2:
11. Kick Company had 150 units of product on hand at January 1 costing 21 each. Purchases of Product A during the month of
January were as follows:
a. 9,850
b. 9,700
c. 5,850
d. 9,600
The company was able to sell 1,250 units at 4.00 each. Gross margin for the sale was P2,500. What was the cost per unit of
the 500 units received on June 20?
a. 1..04
b. 2.08
c. 2.00
d. 1.94
a. 1,000,000 units
b. 1,400,000 units
c. 1,960,000 units
d. 2,000,000 units
15. Using the same information above, how many order will be placed?
a. 200
b. 143
c. 286
d. 280
16. Sing Corporation provided the following transactions from the materials ledger for the month of march
Date Units
Opening Balance March 1 50 [email protected]
Received March 5 100 units @ 5.00
Received March 12 200 units @ 4.50
Issued March 2 30 units
Issued March 18 150 units
Using the moving average method, at what amount should Sing report as raw materials inventory
a. 765
b. 777
c. 786
d. 790
17. Black Company carried four items in inventory. The following per unit data relate to these items at the end of first year of
operations:
Units Cost Sales Price Selling Cost Normal Profit
Category 1 A 25,000 105 130 15 20
B 20,000 85 90 10 10
Category 2 C 40,000 50 45 5 5
D 30,000 65 75 15 10
18. Using the same information above, what is the measurement of inventory under LCNRV applied to inventory category?
a. 7,725,000
b. 7,875,000
c. 8,275,000
d. 7,625,000
The following information was available from the inventory records of Rich Company for January:
Isssued to Production
January 7 2,500
January 31 4,000
19. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the
weighted-average inventory method, rounded to the nearest peso?
a. 12,606
b. 12,284
c. 12,312
d. 12,432
20. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-
average inventory method, rounded to the nearest peso?
e. 12,606
f. 12,284
g. 12,312
h. 12,432