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    Sanchez, Mark Laurence S. BSA 2106 Cost Accounting Exercises: Multiple Choice

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    Mark Laurence Sanchez
    This document contains 8 multiple choice questions related to cost accounting and work in process inventory calculations. The questions provide production quantity and cost data for different time periods and departments. They ask the learner to calculate unit costs, equivalent units of production, accumulated costs of work in process inventory, and ending inventory values based on the information given.

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    Sanchez, Mark Laurence S. BSA 2106 Cost Accounting Exercises: Multiple Choice

    Uploaded by

    Mark Laurence Sanchez
    219 views4 pages
    This document contains 8 multiple choice questions related to cost accounting and work in process inventory calculations. The questions provide production quantity and cost data for different time periods and departments. They ask the learner to calculate unit costs, equivalent units of production, accumulated costs of work in process inventory, and ending inventory values based on the information given.

    Original Description:

    Cost Accounting about FIFO Method

    Original Title

    COST ACCTING_ACTIVITY

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    This document contains 8 multiple choice questions related to cost accounting and work in process inventory calculations. The questions provide production quantity and cost data for different time periods and departments. They ask the learner to calculate unit costs, equivalent units of production, accumulated costs of work in process inventory, and ending inventory values based on the information given.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    219 views4 pages

    Sanchez, Mark Laurence S. BSA 2106 Cost Accounting Exercises: Multiple Choice

    Uploaded by

    Mark Laurence Sanchez
    This document contains 8 multiple choice questions related to cost accounting and work in process inventory calculations. The questions provide production quantity and cost data for different time periods and departments. They ask the learner to calculate unit costs, equivalent units of production, accumulated costs of work in process inventory, and ending inventory values based on the information given.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Sanchez, Mark Laurence S.

    BSA 2106
    Cost Accounting

    EXERCISES:
    Multiple Choice
    1. The product of Pili Mfg. Co passes through three producing departments namely, A,
    B and C. The department unit costs for April and May 2014 were as follows:
    Dept A Dept B Dept C
    April P 5.00 P 8.00 P 4.00
    May 5.80 7.50 4.30

    As of May 31, there are 10,000 units in process in Dept C, ½ done. They were placed
    in process in Dept A in April, transferred to Dept B in April, and then transferred to
    Dept. C in May. Assuming that these 10,000 units comprise the only work in process
    inventory for each of the last three months, how much must be their accumulated
    cost?

    a. P 151,500
    b. P 146,500
    c. P 154,500
    d. Not given

    2. The following data are given on the production of Perez Mfg. Co. for July 2014:
    Total equivalent production 28,500
    Placed in process, finished and transferred 20,000
    Finished and on hand 6,000 units
    In process, end 8,000 units, 1/8 done
    In process, beginning ? units, 1/4 done
    Placed in process ?
    The FIFO costing method is used.
    How many units were there in the beginning inventory of work in process?

    a. 2,000
    b. 1,500
    c. 6,000
    d. Not given

    3. The following data are given on the production of Sumigla Mfg. Co. for June, 2014

    Quantity data:
    In process, June 1 8,000 units, 1/4 done
    Placed in process 40,000 units
    Finished and on hand 6,000 units
    In process, June 30 3,000 units, 1/3 done
    Cost data:
    Work in process, June 1 P 4,390
    Factory costs, June:
    Materials 52,800
    Labor 22,000
    Factory overhead 13,200
    Costs are applied evenly throughout the process.
    What must be the unit cost of those completed and transferred out as finished goods?

    a. P 2.00
    b. P 2.01
    c. P 2.09
    d. Answer not given

    4. Acapulco Mfg. Co processes its product in three consecutive departments, A, B


    and C. The following data are given on the third department’s production for July,
    2014:
    Quantity data:
    In process, July 1 5,000 units, 4/5 done
    Transferred in 22,000 units
    In process, July 31 8,000 units, 3/4 done
    Cost data:
    In process, July 1 P 30,610
    Transferred in 110,000
    Factory costs, July:
    Materials 15,750
    Labor 8,400
    Factory overhead 6,300
    What unit cost must be assigned to the units transferred out?

    a. P 6.45
    b. P 6.44
    c. P 1.45
    d. Not given

    5. In August, 2014, Department B of Sumulong Mfg. Co. received 30,000 units (@ P


    6.20) from Department A. As of August 31, 2014, 3,000 units are still in process, 2/3 done.
    On August 1st, there were 2,000 units in process (1/4 done) with accumulated cost of P
    12,585. Department B incurred the following in August: materials, P 21,350; labor P
    4,575. Factory overhead rate is 66 2/3 % of labor cost.
    What value must be assigned to the ending inventory of work in process?

    a. P 20,500
    b. P 14,300
    c. P 19,550
    d. Not given

    6. Taguig Mfg. Co. has its product processed in two consecutive departments, M and
    P. In Dept. M, materials are added at the start of the process while in Dept. , materials
    are added when goods are 60% done. Labor and factory overhead are evenly applied
    throughout the processes. The following data are given on the operations of these two
    departments for September, 2014:
    Department M Department P
    Stage of Stage of
    Units completion Units completion

    In process, Sept.
    1 3,000 60% 2,000 20%
    Placed in process 20,000
    Transferred in 16,000
    In process,Sep30 ? 40% ? 80%
    Transferred out ? 15,500

    What should be the equivalent units of production for each of the two departments?
    Department M Department P
    Conversion Conversion
    Materials Cost Materials Cost
    a.
    20,000 17,600 16,000 17,100
    b.
    16,000 17,600 16,000 15,900
    c.
    20,000 17,000 18,000 17,100
    d. D None of the above

    7. Parang Mfg. Co. adds all the materials at the start of the process. The following
    data are given on its production for October, 2014:

    Quantity data:
    In process, Oct 1 1,000 units, 1/5 done
    Placed in process 28,000 units
    In process, Oct 31 6,000 units, 1/4 done
    Cost data:
    In process, Oct 1 P 1,420
    Factory costs, October:
    Materials 42,000
    Labor 12,150
    Factory overhead rate: 50% of labor cost

    What must be the unit cost of those transferred to stockroom during the month?

    a. P 2.25
    b. P 2.24
    c. P 2.59
    d. None of these

    8. Department II of Lanzones Mfg. Co. adds all the materials at the middle of the
    process. The following information pertains to the November, 2014 production:

    Quantity data:
    In process, Nov 1 8,000 units, 1/4 done
    Transferred in 50,000 units
    In process, Nov 30 3,000 units, 3/5 done

    Cost data:
    In process, Nov 1 P 9,450
    Transferred in 50,000
    Factory costs, November:
    Materials 29,000
    Labor 13,700
    Factory overhead rate: 80% of labor cost
    How much must be the ending inventory of work in process?

    a. P 5,850
    b. P 2,310
    c. P 5,310
    d. Not given

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