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College of Accountancy, Business, Economics and International Hospitality Management

QUIZ I
ACC 204 – Cost Accounting and Control
First Semester, AY 2023 – 2024

Name: __________________________________________ Score: ___________

Section: _________________________________________ Date: ___________

General Directions:
1. Erasures should be avoided.
2. Answers must be complete and in correct spelling.
3. Unanswered questions will be marked wrong.

1. Curry Company consumed P450,000 worth of direct materials during May 2022. At the of the
month, the direct materials inventory of Curry was P25,000 lower than the May 1 inventory level.
How much was the direct materials procured during May 2022?
a) P475,000
b) P375,000
c) P400,000
d) P425,000
2. Green Company incurred the following costs during the month: direct labor, P120,000; factory
overhead, P108,000; and direct materials purchases, P160,000. Inventories show the following
costs:
Beginning Ending
Finished goods P27,000 P30,000
WIP P61,500 P57,500
Direct Materials P37,500 P43,500
How much is the cost of goods manufactured?
a) P443,500
b) P382,000
c) P386,000
d) P388,000
3. Last month, Thompson Company placed P60,000 of materials into production. The printing
department used 8,000 labor hours at P5.60 per hour and the binding department used 4,600 hours
at P6.00 per hour. Factory overhead is applied at a rate of P6.00 per labor hour in the printing
department and P8.00 per labor hour in the binding department: Thompson’s inventory accounts
show the following balances:
Beginning Ending
Finished goods P22,000 P17,000
WIP P15,000 P17,600
Direct Materials P20,000 P18,000
What is the total cost of goods sold?
a) P219,600
b) 214,600

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c) P108,000
d) P217,200
4. The factory ledger of Wiggins Corporation contains the following cost data for the year ended
December 31, 2022:
Inventories
Opening Closing
Raw materials P 150,000 170,000
WIP 160,000 60,000
Finished goods 180,000 220,000
Raw materials used 652,000
Total manufacturing cost charged to production during
the year (including raw materials, direct labor and
factory overhead applied at the rate of 50% of
direct labor cost 1,372,000
Compute the: (1) cost of raw materials purchased and (2) direct labor charged to production
during the year:
a) (1)P632,000; (2) P240,000

b) (1)P672,000; (2) P480,000

c) (1)P672,000; (2) P720,000

d) (1)P360,000; (2) P480,000

5. Steve Corp uses a job-order costing system. It has three production departments, X, Y and Z. The
manufacturing cost budget for 2022 is as follows:

Dept. X Dept. Y Dept. Z

Direct Materials P 600,000 400,000 200,000

Direct Labor 200,000 500,000 400,000
Manufacturing overhead 600,000 100,000 200,000

For Job No.01-90 which was completed in 2022, direct materials cost was P75,000 and direct labor
cost was as follows:

Dept. X P40,000
Dept. Y P100,000
Dept. Z P20,000
The corporation applies manufacturing overhead to each job order on the basis of direct labor cost,
using departmental rates predetermined at the beginning of the year based on the manufacturing
cost budget.

The total manufacturing cost of Job No.01-90 which was completed in 2022 is:

a) P235,000

b) P310,000

c) P385,000

d) P150,000

6. The following data were taken from the records of Looney Company:

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08/31/2022 09/30/2022
Inventories:
Raw materials P ? P50,000
Work in Process 80,000 95,000
Finished goods 60,000 78,000

Raw materials purchases, P46,000.

Factory Overhead, 75% of direct labor cost, P63,000
Selling and administrative expenses, 12.5% of sales, P25,000
Net income for September 2022, P25,000
What is the cost of raw materials inventory on August 31, 2022?
a) P30,000

b) P40,000

c) P46,000

d) P50,000

7. Tatum Corporation manufactures rattan furniture sets for export and uses the job order cost system
in accounting for its costs. You obtained from the corporation’s books and records the following
information for the year ended December 31, 2022:

- The work in process inventory on January 1 was 20% less than the work in process
inventory on December 31.

- The total manufacturing costs added during 2011 was P900,000 based on actual direct
materials and direct labor but with manufacturing overhead applied on actual direct
labor pesos.

- The manufacturing overhead applied to process was 72% of the direct labor pesos, and
it was equal to 25% of the total manufacturing cost.

- The cost of goods manufactured, also based on actual direct materials, actual direct
labor and applied manufacturing overhead, was P850,000

The cost of direct materials used and the work-in-process inventory on December 31, 2022:
Direct Materials Used Work-in-process Inventory
a) P1,075,000 P200,000

b) P362,500 P250,000

c) P312,500 P250,000

d) P312,500 P275,000

8. Brown Company has the following data on April 30, 2022:

April manufacturing overhead P30,101.80

Decrease in ending inventories:
Materials P2,430.00
Goods in Process P590.00
Increase in ending inventory:
Finished goods P1,320.40

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The manufacturing overhead amounts to 50% of the direct labor, and the direct labor and
manufacturing overhead combined equal 50% of the total cost of manufacturing. All materials are
purchased F.O.B shipping point.

What is the cost of goods manufactured?

a) P180,610.80

b) P181,200.80

c) P182,300,80

d) P183,200.80

9. The Smart Corporation manufactures one product and accounts for cost by a job-order cost system.
You have obtained the following information for the year ended December 31, 2022 from the
corporation’s books and records:

Total manufacturing cost added during 2022 based on actual

direct materials, actual direct labor and applied factory
overhead on actual direct labor cost P1,000,000
Cost of goods manufactured based on actual direct materials and
direct labor and applied factory overhead P970,000
Applied factory overhead to work in process based on direct
labor cost 75%
Applied factory overhead for the year, based on total
manufacturing cost 27%
Beginning work in process inventory was 80% of ending work in process inventory.
Compute the cost of direct materials used for year ended December 31, 2022.
a) P370,000

b) P970,000

c) P990,000

d) P970,500

10. Williams Company employs a job order cost system. Its manufacturing activities in July 2022, its
first month of operation, are summarized as follows:

JOB NUMBERS
1201 1202 1203 1204
Direct materials P7,000 P5,800 P11,600 P5,000
Direct labor cost P6,600 P6,000 P8,400 P2,400
Direct labor hours 1,100 1,000 1,400 400
Units produced 200 100 1,000 300
Manufacturing overhead is applied at a rate of P2 per direct labor hour for variable overhead, P3
per hour for fixed overhead.
Jobs 1201, 1202 and 1203 were completed in July.
What is the cost of the completed jobs?
a) P62,900

b) P62,500

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c) P72,900

d) P65,900

11. Job No. 010 has, at the end of the second week in April, an accumulated total cost of P4,200. In the
third week, P1,010 of direct materials were used on the Job.

Twenty (20) hours of direct labor services were applied to the job at a cost of P5 per hour.

Manufacturing overhead was applied at the basis of P2.50 per direct labor hour for fixed overhead
and P2 per hour for variable overhead.

Job No. 010 was the only job completed during the third week.

The total cost of Job Order No. 010 is:

a) P5,390

b) P5,360

c) P5,350

d) P5,400

12. The work-in-process account of the Horford Company which uses a job order cost system follows:

Work-In-Process

April 1 Balance P25,000 Finished goods P125,450

Direct Materials P50,000
Direct Labor P40,000
Overhead Applied P30,000

Overhead is applied to production at a predetermined rate, based on direct labor cost. The work in
process on April 30 represents the cost of Job No. 456, which has been charged with direct labor
cost of P3,000 and Job No. 789, which has been charged with applied overhead of P2,400.
The cost of direct materials charged to Job No. 456 and Job No. 789 amounted to:
a) P8,700

b) P7,600

c) P4,500

d) P4,200

13. The following information were taken from the accounting records of Irving Company for 2022:

Increase in raw materials inventory P45,000

Decrease in finished goods inventory P150,000
Raw materials purchases P1,290,000
Direct labor payroll P600,000
Factory overhead P900,000
Freight out P135,000

The cost of raw materials used during the period amounted to:
a) P1,245,000

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b) P1,290,000

c) P1,335,000

d) P1,380,000

14. Durant Corp. manufactures specialized precision electronics kits. In late March, Job orders #0311
and #0322 were started. Estimated materials cost were P90,000 for both orders (60% for #0311)
while direct labor hours were estimated at 700 for #0311 and 400 for #0322. Labor rate is P18 per
hour while variable overhead rate is P10 per hour.

By the end of April, 755 of the required materials have been issued to production in the amount of
P90,000 and both job orders have been 50% converted with 360 hours charged to #0311 and 180
hours charged to #0322 at the hourly rates given.

The total cost charged to Job Order #0311 was:

a) P45,800

b) P52,350

c) P64,080

d) P67,600

15. Harden Corp. manufactures to customers’ specifications. The company uses a job order cost system
and, for the month of May 2022, summarized the following information:

Beg. WIP (five partially completed jobs) P300,000

Orders completed (eighteen) P2,400,000
Orders shipped out (fourteen) P2,000,000
Materials requisitioned P1,700,000
Direct labor cost P800,000
Overhead = 150% of direct labor cost
The month-end work in process inventory was:
a) P700,000

b) P800,000

c) P1,400,000

d) P1,600,000

16. Bridges Inc. manufactured 50,000 kilos of compound Am in 2022 at the following costs:

Opening work-in-process of P88,125.

Materials of P182,500 of which 90% is direct materials.
Labor of P242,500 of which 93% is direct labor.
Closing work-in-process of P67,500

Factory overhead is 125% of direct labor cost and includes indirect materials and indirect labor.
The cost of goods manufactured is:
a) P651,056

b) P692,306

c) P706,906

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d) P727,531

17. Seth Co.’s materials purchase during 2022 are P25,590 and materials put into production are direct
and indirect materials, respectively, worth P18,500 and P7,090. The total factory payroll is P74,000
of which P50,000 represents direct labor. Other factory overhead costs amount to P32,000. The
company applies the actual factory overhead cost to process. Sales, cost of goods sold, and cost of
goods manufactured, respectively, are P130,000, P120,000 and P128,000.

By what amount did the company’s closing goods in process inventory exceed its opening goods
in process inventory?
a) P1,590

b) P3,590

c) P5,390

d) P10,590

18. James Co. is a manufacturing concern using the perpetual inventory system. The following
materials inventory account data is provided:

Beginning balance P275,000

Other debits to the account P825,000
Excess of ending inventory over beginning inventory P55,000
How much is the cost of materials issued to production?
a) P770,000

b) P1,045,000

c) P1,100,000

d) P1,155,000

19. The following selected information pertains to Anthony Processing Co.: direct materials, P62,500;
indirect materials, P12,500; factory payroll, P75,000 of direct labor and P11,250 of indirect labor;
and other factory overhead incurred, P37,500.

The total conversion cost was:

a) P136,250

b) P137,500

c) P250,000

d) P273,750

20. Russell uses a job order cost system and applies factory overhead to production orders on the basis
of direct-labor cost. The overhead rates for 2022 are 200% for Department A and 50% for
Department B. Job 123 started and completed during 2022, was charged with the following costs:

Department
A B
Direct materials P25,000 P5,000
Direct labor ? P30,000
Factory overhead P40,000 ?

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The total manufacturing cost associated with Job 123 should be
a) P135,000

b) P180,000

c) P195,000

d) P240,000

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