Bacostmx-1tay2223-Midterms Quiz 1 Reviewer

BACOSTMX-QUIZ 1 REVIEWER
The following information are available for Fortified Company during the 6-months period ending in
June 30:
Accounts Beginning Ending
Direct Materials P174,000 P132,000
Work in process 311,500 289,750
Finished Goods 192,000 255,000
Supplementary data:
a. Purchases during the period:
Direct materials P1,500,000
Factory supplies 60,000
b. Supervision fee 175,000
c. Direct labor hours worked, 21,000 @P45,
excluding 1,000 hours overtime. The
company’s policy on overtime is time and a
half (50% premium).
d. Other factory overhead including factory
supplies used of P25,000 but excluding 300,000
overtime premium.
e. Actual overhead is applied to the job.
1. The prime costs during the period amounted to:

a. P2,487,000
b. P2,448,000
c. P2,532,000
d. P2,403,000
2. The conversion costs during the period amounted to:
a. P1,532,500
b. P1,442,500
c. P2,012,500
d. P1,487,500
The following information has been taken from the cost records of T Co. for the past years:
Raw materials used in the production P326,000
Prime costs for the period P551,000
Conversion cost for the period P360,000
(OH applied is equal to 60% of direct labor)
Cost of goods available for sale 826,000
Selling of Administrative expenses 25,000
Inventories Beginning Ending
Raw Materials P75,000 P85,000
Work in Process 80,000 30,000
Finished Goods 90,000 110,000
3. The cost raw material purchased amounted to:

a. P316,000
b. P336,000
c. P360,000
d. P411,000
4. The total factory costs for the period amount to:
a. P911,000
b. P551,000
c. P686,000
d. P767,000
Dove Manufacturing Company’s Cost of Goods Sold for the year amounted to P6,900,000. The work
in process at the end was 90% of the beginning Work in Process inventory. Factory overhead was
applied at 60% of direct labor costs. On January 1, inventories showed the following balances
• Finished Goods P2,040,000

• Work in Process 800,000
• Direct Materials 400,000
• Factory Supplies 180,000
During the period, the following purchases were recorded:
• Direct Materials P3,200,000

• Factory Supplies 900,000
It was also noted that Finished Goods decreased by P320,000 while direct materials and factory supplies
increased by P180,000 and P50,000, respectively.
5. The cost of materials, labor and overhead added during the period amount to:
Materials Labor Overhead
a. P3,870,000 P2,918,750 P1,751,250
b. 3,020,000 3,312,000 2,206,000
c. 3,870,000 3,450,000 2,070,000
d. 3,020,000 2,175,000 1,305,000
The following cost information is available from the records of Johnson Company for the year just
ended:
Inventories January 1 December 31
Finished Goods P2,400,000 P2,950,000
Work in process 3,000,000 2,400,000
Raw Materials 4,400,000 2,800,000
Store Supplies 850,000 700,000
Office Supplies 150,000 280,000
Purchases:
Raw Materials P9,000,000
Store Supplies 1,200,000
Office Supplies 850,000
Other costs and expenses:
Salaries & Benefits:
Direct labor P6,500,000
Indirect labor 560,000
Supervision fee 1,250,000
Administrative & selling 2,360,000
Depreciation (60% factory; 40% adm & Sell) 1,500,000
Rent (60% factory; 40% adm & sell) 1,200,000
Utilities (60% factory; 40% adm & sell) 600,000
Advertising 320,000
Factory supplies used 850,000
Additional information:
The company applies actual overhead to production and sells their produce at price to give the
company a gross profit rate of 25%. If problem is silent, assume gross profit based on sales.
6. The total sales for the period amounted to:
a. P27,920,000
b. P26,175,000
c. P29,787,667
d. P27,925,000
The following data were taken from the records of Serendra Company:
Inventories June 1 June 30

Raw Materials ? P50,000
Work in process P80,000 P95,000
Finished goods P60,000 P78,000
Raw materials purchased P46,000
Factory overhead, 75% of Direct labor costs 63,000
Operating expenses, 12.5% of sales 25,000
Net income 25,000
7. The cost of goods sold for June amounted to:

a. P120,000
b. P150,000
c. P168,000
d. P183,000
8. JMP Industries electricity costs and machine hours over a nine-month period follow: (Relevant
range is from 2,000 to 5,000 machine hours)
Month Machine hours Cost
April 2100 P 9,750
May 3400 14,300
June 5800 21,640
July 4900 19,550
August 2500 11,150
September 3000 12,900
October 2400 10,800
November 1800 8,440
December 4800 22,000
Using the high-low method, how much is the electricity costs if the actual machine hours used
is 2,800?
a. P11,830
b. P12,200
c. P12,900
d. P11,740
As part of cost study, the cost accountant of ABC Corporation has recorded the cost of operations at
seven different levels of materials usage. The records show the following:
Kilos of materials Cost of operations

80 P 800
60 480
20 320
120 1,200
140 1,280
40 480
100 1,040
9. Using the least square method, the average rate of variability per kilo of material used is:
a. P 8.00
b. P .11
c. P 10.00
d. P 8.71
10. Using the least square method, the fixed portion of the cost is
a. P 320
b. P 103
c. P 160
d. P 206

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BACOSTMX-QUIZ 1 REVIEWER

1. The prime costs during the period amounted to:

3. The cost raw material purchased amounted to:

• Finished Goods P2,040,000

During the period, the following purchases were recorded:

• Direct Materials P3,200,000

Inventories June 1 June 30

7. The cost of goods sold for June amounted to:

Kilos of materials Cost of operations

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