Cost Acc Q1

QUIZ NO.
1
1. If manufacturing overhead has been underapplied during the year, the adjusting entry at
the end of the year will show a
- DEBIT TO COST OF GOODS SOLD
2. Debits to Work in Process Inventory are accompanied by a credit to all but which one of
the following accounts?
- COST OF GOODS SOLD
3. Cost of raw materials is debited to Raw Materials Inventory when the
- MATERIALS ARE RECEIVED
4. On the cost of goods manufactured schedule, the cost of goods manufactured agrees with
the
- AMOUNT TRANSFERRED FROM WORK IN PROCESS INVENTORY TO FINISHED
GOODS DURING THE PERIOD.
5. Overhead is applied to jobs in a job order costing system
- AT THE END OF A PERIOD OR AS JOBS ARE COMPLETED, WHICHEVER IS EARLIER
6. Usually, under- or overapplied overhead is considered to be an adjustment to
- COST OF GOODS SOLD
7. Debits to Cost of Goods Sold typically represent the
- COST OF ITEMS SOLD
8. In a job order cost system, it would be correct in recording the purchase of raw materials
to debit
- RAW MATERIALS INVENTORY
9. The job cost sheet does not show
- THE COST OF GOODS SOLD
10. Cost of goods sold is obtained from
- THE FINISHED GOODS INVENTORY RECORDS
11. During 2008, Denson Manufacturing expected Job No. 51 to cost P450,000 of overhead,
P750,000 of materials, and P300,000 in labor. Denson applied overhead based on direct
labor cost. Actual production required an overhead cost of P420,000, P825,000 in
materials used, and P330,000 in labor. All of the goods were completed. What amount
was transferred to Finished Goods?
- P1,650,000
12. Gannon Company had the following information at December 31:
Finished goods inventory, January 1 P 50,000
Finished goods inventory, December 31 150,000
If the cost of goods manufactured during the year amounted to P2,100,000 and annual
sales were P2,750,000, the amount of gross profit for the year is
- P750,000
13. Yuzuru Company incurred direct materials costs of P500,000 during the year. Manu-
facturing overhead applied was P90,000 and is applied at the rate of 60% of direct labor
costs. Vernon Company’s total manufacturing costs for the year was
- P740,000
14. Redman Company manufactures customized desks. The following pertains to Job No. 978:
Direct materials used P6,300
Direct labor hours worked 300
Direct labor rate per hour P12.00
Machine hours used 200
Applied factory overhead rate per machine hour P22.00
What is the total manufacturing cost for Job No. 978?
- P14,300
15. Russell Manufacturing Company developed the following data:
- Beginning work in process inventory P180,000
- Direct materials used 140,000
- Actual overhead 220,000
- Overhead applied 160,000
- Cost of goods manufactured 240,000
- Ending work in process 300,000
Russell Manufacturing Company's total manufacturing costs for the period is
- P360,00
16. Yuzu Co. uses a job order costing system and the following information is available from its
records. The company has 3 jobs in process: A, B and C.
Raw material used P120,000
Direct labor per hour P8.50
Overhead applied based on
direct labor cost 120%
Direct material was requisitioned as follows for each job respectively: 30 percent,
25 percent, and 25 percent; the balance of the requisitions was considered indirect.
Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is
P33,000. Other actual overhead costs totaled P36,000. What is the prime cost of Job
A?
- 57,250
17. Chmelar Manufacturing Company developed the following data:
Beginning work in process inventory P 20,000

Direct materials used 120,000
Actual overhead 140,000
Overhead applied 135,000
Cost of goods manufactured 320,000
Ending work in process 15,000
How much are total manufacturing costs for the period?
- P315,000
18. Hanyu Corp. manufactures products on a job order basis. The job cost sheet for Job X
shows the following for June:
Direct material P5,000
Direct labor (100 hours @ P7.25) P725
Machine hours incurred 40
Predetermined overhead rate per
machine hour P26
At the end of March, what total cost appears on the job cost sheet for Job X?
- P7,765
19. Cost of goods manufactured equals P44,000 for 2008. Finished goods inventory is P2,000
at the beginning of the year and P5,500 at the end of the year. Beginning and ending work
in process for 2008 are P4,000 and P5,000, respectively. How much is cost of goods sold
for the year?
- P40,500
20. Yuzuru Co. uses a job order costing system. During April 2001, the following costs
appeared in the Work in Process Inventory account:
Beginning balance P 24,000
Direct material used 70,000
Direct labor incurred 60,000
Applied overhead 48,000
Cost of goods manufactured 185,000
Yuzuru Co. applies overhead on the basis of direct labor cost. There was only one job
left in WIP Inventory at the end of April which contained P5,600 of overhead. What
amount of direct material was included in this job?
- P4,400
21. During 2008, Speck Manufacturing expected Job No. 59 to cost P450,000 of overhead,
P750,000 of materials, and P300,000 in labor. Speck applied overhead based on direct
labor cost. Actual production required an overhead cost of P420,000, P825,000 in
materials used, and P330,000 in labor. All of the goods were completed. How much is the
amount of over- or underapplied overhead?
- P75,000 overapplied
22. Hanyu Inc. uses job order costing for its brand new line of sewing machines. The cost
incurred for production during 2008 totaled P12,000 of materials, P6,000 of direct labor
costs, and P4,000 of manufacturing overhead applied. The company ships all goods as
soon as they are completed which results in no finished goods inventory on hand at the
end of any year. Beginning work in process totaled P10,000, and the ending balance is
P6,000. During the year, the company completed 40 machines. How much is the cost per
machine?
- 650
23. As of December 31, 2008, Yuzuru Industries had P2,000 of raw materials inventory. At the
beginning of 2008, there was P1,600 of materials on hand. During the year, the company
purchased P244,000 of materials; however it paid for only P234,000. How much inventory
was requisitioned for use on jobs during 2008?
- P243,600
24. The following information is available for completed Job No. 402: Direct materials,
P60,000; direct labor, P90,000; manufacturing overhead applied, P45,000; units produced,
5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is
- P39,000
25. Chin Company incurred direct materials costs of P300,000 during the year. Manufacturing
overhead applied was P280,000 and is applied based on direct labor costs. The
predetermined overhead rate is 70%. How much are Chin Company’s total manufacturing
costs for the year?
- P980,000

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QUIZ NO.

Beginning work in process inventory P 20,000

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