ACC 122_SAS_DAY 18 - EXAM-1

ACC 122: Cost Accounting and Control
Student Activity Sheet Module # 18
Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________
Materials:
2ND GRADING PERIOD
Writing materials & calculator
GENERAL DIRECTIONS
READ THIS PAGE BEFORE STARTING THE ASSESSMENT
This is a 23 paged test and is composed of 1 section and has a total score of sixty (60) points. You have
sixty (60) Minutes to finish this test. The breakdown of the exam is as follows:
(1) Multiple-choice Section. The questions in this section is with LEARNING OBJECTIVE:
four answer choices. The test is composed of 60 questions and is
rated as 1 point each. This assessment measures the
competence of the student in terms
All things unnecessary for the test must be put in front of the testing of his/her application of knowledge
area. Use BLACK or BLUE ink ballpen only. Write all your answers on and skills in the following topics:
the designated answer sheet. Further, erasures are strictly NOT 1. Cost Accounting System
allowed and will invalidate your answers. 2. Job-Order System
a. Direct Materials
You may NOT use smart phones or reference materials during the b. Direct Labor
testing session. Only the allowed calculators should be used. c. Overhead
3. Statement of Cost of Goods
Try to answer all questions. In general, if you have some knowledge Manufactured and Sold
4. Process Costing
about a question, it is better to try to answer it. You will not be penalized
a. Cost Accumulation
for guessing. Procedures
b. Equivalent Units of
Be sure to allocate your time carefully so you can complete the Production
entire test within the exam session. You may go back and review your c. Preparation of cost of
answers at any time during the exam session. production under FIFO
d. Preparation of cost of
Those who are caught cheating or doing acts not allowed during the production under FIFO
exam shall be instructed to surrender their test papers and shall leave e. Accounting for Lost Units
the testing room immediately. Subsequently, their papers shall be rated
as ZERO.
This concludes the instruction page.
You may now begin answering.
Page 1 of 16
This document is the property of PHINMA EDUCATION.

MULTIPLE CHOICE. Write your answer on the space provide before the number.
_______1. Which of the following statements is correct?

I. A process cost accounting system is appropriate for homogeneous products that are continuously mass
produced.
II. The perpetual inventory method cannot be used in a job order cost system.
a. Statement I only
b. Statement II only
c. Both statements are correct
d. Both statements are incorrect

I. A job order cost system and a process cost system are two alternative methods for valuing inventories.
II. A job order cost system identifies costs with a particular job rather than with a set time period.
a. Statement I only

I. A company may use either a job order cost system or a process cost system, but not both.
II. Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control accounts in the
general ledger when a job order cost accounting system is used.
a. Statement I only
_______4. Which of the following production operations would be most likely to employ a job order system
of cost accounting?
a. Candy manufacturing
b. Crude oil refining
c. Printing text books
d. Flour Milling
_______5. Winter Company incurred direct materials costs of P500,000 during the year. Manufactur-ing
overhead applied was P90,000 and is applied at the rate of 60% of direct labor costs. Winter Company’s
total manufacturing costs for the year were
a. P740,000.
b. P644,000.
c. P590,000.
d. P944,000.
_______6. Cost of goods sold is obtained from

a. analysis of all the control accounts in the cost system.
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b. the finished goods inventory records.

c. the work in process inventory records.
d. the Raw Materials Inventory control account.
_______7. The existence of under- or overapplied overhead at the end of the month
a. is expected to be offset in future months.
b. indicates that an error has been made.
c. requires a retroactive adjustment to the cost of all jobs completed.
d. is written off as a bad estimate expense.
_______8. Clean Manufacturing has the following labor costs:

Factory—Gross wages P117,000
Factory—Net wages 96,000
Employer Payroll Taxes Payable 15,000
The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to
Factory Labor for
a. P132,000.
b. P117,000.
c. P111,000.
d. P102,000.
_______9. A materials requisition slip showed that direct materials requested were P30,000 and indirect
materials requested were P6,000. The entry to record the transfer of materials from the storeroom is
a. Work In Process Inventory .................................................... 30,000
Raw Materials Inventory .............................................. 30,000
b. Direct Materials ..................................................................... 30,000
Indirect Materials ................................................................... 6,000
Work in Process Inventory ........................................... 36,000
c. Manufacturing Overhead ...................................................... 36,000
d. Work In Process Inventory .................................................... 30,000
Manufacturing Overhead ...................................................... 6,000
_______10. The job cost sheet does not show

a. costs chargeable to a specific job.
b. the total costs of a completed job.
c. the unit cost of a completed job.
d. the cost of goods sold.
_______11. At the beginning of the year, Monroe Company estimates annual overhead costs to be
P600,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount
of overhead applied during the year if actual machine hours for the year was 315,000 hours is
a. P157,500.
b. P571,429.
Page 3 of 16

c. P315,000.
d. P630,000.
_______12. A cost center in a process cost system is a:

a. Unit to which costs are accumulated.
b. Job.
c. Specific product.
d. Employee.
_______13. Process costing techniques should be used in assigning costs to products:

a. If the product is manufactured on the basis of each order received.
b. In all manufacturing situations.
c. When production is only partially completed during the accounting period.
d. If the product is composed of mass-produced homogeneous units.
_______14. The cost of an equivalent unit is equal to:

a. A unit of work in process inventory.
b. The amount of cost necessary to start a unit of production into work in process.
c. The cost necessary to complete one unit of production.
d. A unit of work in process inventory.
_______15. If there is no beginning work in process inventory and the ending work in process
inventory is 90 percent complete, the number of equivalent units would be:
a. The same as the units placed in process.
b. The same as the units completed.
c. Less than the units placed in process.
d. Less than the units completed.
_______16. The computation of manufacturing cost per equivalent unit, using the average cost
method of process costing, considers:
a. Current costs only.
b. Current costs plus cost of beginning work in process inventory.
c. Current costs plus cost of ending work in process inventory.
d. Current costs less cost of beginning work in process inventory.
_______17. In a given process costing system, the equivalent units of production are computed
using the average cost method. The percentage of completion for the current period only is included in
the calculation of the:
Beginning Work in Ending Work in
Process Inventory Process Inventory
a. No No
b. No Yes
c. Yes No
d. Yes Yes
Page 4 of 16

_______18. The beginning work in process inventory is 60 percent complete, and the ending work in
process inventory is 45 percent complete. The dollar amount of the production cost included in the
ending work in process inventory (using the average cost method) is determined by multiplying the
average unit costs by what percentage of the total units in the ending work in process inventory?
a. 100 percent
b. 60 percent
c. 55 percent
d. 45 percent
_______19. What are transferred-in costs as used in a process cost accounting system?
a. Labor that is transferred from another department within the same plant instead of
hiring temporary workers from the outside
b. Costs that have been incurred in a prior department on units that have been
moved into a subsequent department
c. Supervisory salaries that are transferred from an overhead cost center to a
production cost center
d. Ending work in process inventory of a previous process that will be used in a
succeeding process
_______20. Information concerning the materials used in the Mixing Department in October is as
follows:
Units Materials Costs

Work in process, Oct. 1 11,700 P 4,100
Units started during Oct. 43,300 22,900
Units completed and transferred to next department
during Oct. 45,000
If the ending work-in-process inventory is 50% complete, using the average cost method, what was the
materials cost in work in process at October 31?
a. P2,644
b. P2,700
c. P4,330
d. P4,811
_______21. In a production cost report using process costing, transferred-in costs are similar to:
a. Material added at the beginning of the process.
b. Conversion costs added during the process.
c. Costs transferred to the next process.
d. Costs included in beginning inventory.
Page 5 of 16

_______22. The Assembly Department is the second stage of Baguio Company's production cycle.
On May 1, the beginning work in process contained 15,000 units that were 40 percent complete.
During May, 85,000 units were transferred in from the first stage of Baguio's production cycle. On May
31, the ending work in process contained 20,000 units that were 75 percent complete. Using the
average cost method, the equivalent units are:
Transferred-In Conversion
Costs Materials Costs
a. 85,000 70,000 70,000

b. 100,000 80,000 80,000
c. 100,000 95,000 95,000
d. 120,000 100,000 100,000
_______23. Doggy Company has two departments, Mixing and Curing. The following information is
available for September:
Cost per
Mixing Department: Number of units equivalent unit
Transferred to the curing 9,000 P2.00
department
Ending work-in-process inventory
70 % complete 4,000 P2.00
Curing Department:
Completed and transferred out 8,000 P3.00
30% complete 5,000 P3.00
The entry to record the transfer of inventory from the mixing to the curing department is:
a. Work-in-process - Curing 18,000
Work-in-process - Mixing 18,000
b. Finished goods 18,000

c. Work-in-process - Mixing 5,600

Work-in-process - Curing 5,600
d. Work-in-process - Curing 18,000

Transferred in costs 18,000
_______24. Doggy Company has two departments, Mixing and Curing. The following information is
available for September:
Cost per
Mixing Department: Number of units equivalent unit
Page 6 of 16

Transferred to the curing 9,000 P2.00

department
70 % complete 4,000 P2.00
Curing Department:
Completed and transferred out 8,000 P3.00
30% complete 5,000 P3.00
The entry to record the transfer of inventory from the curing department to the warehouse is:
a. Finished goods 18,000
b. Finished goods 24,000

Work-in-process - Curing 24,000
c. Work-in-process - Curing 24,000

d. Work-in-process - Curing 4,500

Finished goods 4,500
_______25. Department B had 1,000 units in beginning work-in-process which had transferred in
costs of P2,500 from Department A associated with them. During the period, 12,000 more units having
costs of P36,000 were transferred in to Department B from Department A. What is the unit cost for the
period of costs transferred from Department A?
a. P2.00
b. P2.75
c. P2.96
d. P3.00
_______26. The following information is available for the month of April from the First department of
the Twigg Corporation:
Units
Work in process, August 1 (60% complete) 50,000
Started in April 190,000
Materials are added in the beginning of the process in the First department. Using the average cost
method, what are the equivalent units of production for the month of April?
Materials Conversion
a. 192,000 240,000
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b. 190,000 192,000
c. 240,000 208,000
d. 240,000 192,000
the Twigg Corporation:
Units
Materials are added at the end of the process in the First department. Using the average cost method,
what are the equivalent units of production for the month of April?
a. 192,000 160,000
b. 160,000 192,000
c. 160,000 208,000
d. 240,000 192,000
the Marquee Corporation:
Units
Work in process, April 1 (50% complete) 90,000
Transferred to Second Department in April 280,000
Materials are added in the beginning of the process in the First department. Using the average cost
method, what are the equivalent units of production for the month of April?
a. 310,000 250,000
b. 250,000 295,000
c. 340,000 316,000
d. 340,000 304,000
the Marquee Corporation:
Units
Page 8 of 16


Transferred to Second Department in April 280,000
Materials are added at the end of the process in the First department. Using the average cost method,
what are the equivalent units of production for the month of April?
a. 304,000 250,000
b. 280,000 295,000
c. 340,000 316,000
d. 280,000 304,000
_______30. Information concerning Department A of Ali Company for the month of June is as
follows:
Materials
Units Costs
Work in process, beginning of month 20,000 P14,250
Started in June 85,000 P66,600
Units completed 90,000
Work in process, end of month 15,000
All materials are added at the beginning of the process. Using the average cost method, the cost
(rounded to two places) per equivalent unit for materials is:
a. P0.74.
b. P0.90.
c. P0.77.
d. P0.78.
_______31. Plemmon Company adds materials at the beginning of the process in the forming
department, which is the first of two stages of its production cycle. Information concerning the materials
used in the forming department in April follows:
Materials
Units Costs
Work in process at April 1 15,000 P 8,000
Units started during April 60,000 P38,500
during April 65,000
Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to
nearest dollar)?
a. P7,154
b. P6,200
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c. P7,750
d. P6,417
_______32. Plemmon Company adds materials at the beginning of the process in the forming
department, which is the first of two stages of its production cycle. Information concerning the materials
used in the forming department in April follows:
Materials
Units Costs
Work in process at April 1 15,000 P 8,000
Units started during April 60,000 P38,500
during April 65,000
Using the FIFO method, what is the materials cost of the work in process at April 30 (rounded to nearest
dollar)?
a. P7,154
b. P6,200
c. P7,750
d. P6,417
_______33. During April, BIrthy Bay Company's Department B equivalent unit product costs
computed under the average cost method were as follows:
Materials P2
Conversion P3
Transferred-in P5
Materials are introduced at the end of the process in Department B. There were 4,000 units (60 %
complete as to conversion costs) in work in process at April 30. The total costs assigned to the April 30
work in process inventory should be:
a. P20,000.
b. P24,800.
c. P27,200.
d. P35,200.
_______34. During April, BIrthy Bay Company's Department B equivalent unit product costs
computed under the FIFO method were as follows:
Materials P2
Conversion P3
Transferred-in P5
Materials are introduced at the end of the process in Department B. There were 4,000 units (60 %
complete as to conversion costs) in work in process at April 30. The total costs assigned to the April 30
work in process inventory should be:
Page 10 of 16

a. P20,000.
b. P24,800.
c. P27,200.
d. P35,200.
_______35. Normal losses that occur in the manufacturing process are properly classified as:
a. Extraordinary items.
b. Product costs.
c. Period costs.
d. Deferred charges.
_______36. Stanley Company adds materials at the beginning of the process in Department M. Data
concerning the materials used in the March production follows:
Units
Work in process at March 1 15,000
Started during March 38,000
Completed and transferred to next department during March 37,000
Normal spoilage incurred 2,000
Work in process at March 31 14,000
Using the average cost method, the equivalent units for the materials unit cost calculation are:
a. 38,000.
b. 51,000.
c. 55,000.
d. 37,000.
_______37. Department A is the first stage of Mann Company's production cycle. The following
information is available for conversion costs for the month of April:
......................................................................................................... Units
Beginning work in process (60% complete) ............................................. 20,000
Started in April .......................................................................................... 340,000
Completed in April and transferred to Department B............................... 320,000
Ending work in process (40% complete).................................................. 40,000
Using the FIFO method, the equivalent units for the conversion cost calculation are:
A. 336,000
B. 360,000
C. 328,000
D. 320,000
E. 324,000
Page 11 of 16

Wapasok Company
The Wapasok Company makes wreaths in two departments: Forming and Decorating. Forming began the month
with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to
conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were
still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume
Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:
Beginning Work in Process Costs:

Material P1,000
Conversion 1,500
Current Costs:
Material P3,200
Conversion 5,045
The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent
complete as to material and 90 percent complete as to conversion. The department had 300 units in ending
Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.
Decorating uses the FIFO method of process costing, and costs associated with Decorating are:
Beginning WIP Inventory:

Transferred In P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P67,745
Conversion 95,820
_______38. Refer to Wapasok Company. How many units were transferred to Decorating during the
month?
a. 600
b. 4,900
c. 5,950
d. 7,000
_______39. Refer to Wapasok Company. What was the cost transferred out of Forming during the
month?
a. P5,341
b. P6,419
c. P8,245
d. P8,330
Page 12 of 16

_______40. Refer to Wapasok Company. Assume 8,000 units were transferred to Decorating.
Compute the number of equivalent units as to costs in Decorating for the transferred-in cost
component.
a. 7,400
b. 7,700
c. 8,000
d. 8,600
Compute the number of equivalent units in Decorating for material.
a. 7,970
b. 8,000
c. 8,330
d. 8,450
Compute the number of equivalent units in Decorating for conversion.
a. 7,925
b. 7,985
c. 8,360
d. 8,465
_______43. Refer to Wapasok Company. Assume that 8,000 units were transferred to Decorating at
a total cost of P16,000. What is the material cost per equivalent unit in Decorating?
a. P8.50
b. P8.65
c. P8.80
d. P9.04
_______44. Refer to Wapasok Company. Assume that 8,000 units were transferred to Decorating at
a total cost of P16,000. What is the conversion cost per equivalent unit in Decorating?
a. P11.32
b. P11.46
c. P12.00
d. P12.78
_______45. Refer to Wapasok Company. Assume the material cost per EUP is P8.00 and the
conversion cost per EUP is P15 in Decorating. What is the cost of completing the units in beginning
inventory?
a. P 960
b. P 1,380
c. P 1,860
d. P11,940
Page 13 of 16

_______46. In a FIFO process costing system, which of the following are assumed to be completed
first in the current period?
a. units started this period
b. units started last period
c. units transferred out
d. units still in process
_______47. To compute equivalent units of production using the FIFO method of process costing,
work for the current period must be stated in units
a. completed during the period and units in ending inventory.
b. completed from beginning inventory, units started and completed during the
period, and units partially completed in ending inventory.
c. started during the period and units transferred out during the period.
d. processed during the period and units completed during the period.
_______48. The FIFO method of process costing will produce the same cost of goods transferred out
amount as the weighted average method when
a. the goods produced are homogeneous.
b. there is no beginning Work in Process Inventory.
c. there is no ending Work in Process Inventory.
d. beginning and ending Work in Process Inventories are each 50 percent complete.
_______49. The primary difference between the FIFO and weighted average methods of process
costing is
a. in the treatment of beginning Work in Process Inventory.
b. in the treatment of current period production costs.
c. in the treatment of spoiled units.
d. none of the above.
_______50. Transferred-in cost represents the cost from

a. the last department only.
b. the last production cycle.
c. all prior departments.
d. the current period only.
_______51. Which of the following is(are) the same between the weighted average and FIFO
methods of calculating EUPs?
Units to EUP Total cost to

account for calculations account for
a. no yes no
b. yes yes yes
c. yes no no
d. yes no yes
Page 14 of 16

_______52. A process costing system does which of the following?
Calculates Assigns costs to inventories

EUPs
a. no no
b. no yes
c. yes yes
d. yes no
_______53. Which of the following statements is false? The cost of rework on defective units, if
a. abnormal, should be assigned to a loss account.
b. normal and if actual costs are used, should be assigned to material, labor and
overhead costs of the good production.
c. normal and if standard costs are used, should be considered when developing the
overhead application rate.
d. abnormal, should be prorated among Work In Process, Finished Goods, and Cost
of Goods Sold.
_______54. If normal spoilage is detected at an inspection point within the process (rather than at the
end), the cost of that spoilage should be
a. included with the cost of the units sold during the period.
b. included with the cost of the units completed in that department during the period.
c. allocated to ending work in process units and units transferred out based on their
relative values.
d. allocated to the good units that have passed the inspection point.
Millan Company
Millan Company adds material at the start of production. The following production information is
available for June:
Beginning Work in Process Inventory

(45% complete as to conversion) 10,000 units
Started this period 120,000 units
Ending Work in Process Inventory
(80% complete as to conversion) 8,200 units
Beginning Work in Process Inventory

Costs:
Material P24,500
Conversion 68,905
Current Period Costs:

Page 15 of 16

Material P 75,600
Conversion 130,053
_______55. Refer to Millan Company. How many units must be accounted for?
a. 118,200
b. 128,200
c. 130,000
d. 138,200
_______56. Refer to Millan Company. What is the total cost to account for?
a. P 93,405
b. P205,653
c. P274,558
d. P299,058
_______57. Refer to Millan Company. How many units were started and completed in the period?
a. 111,800
b. 120,000
c. 121,800
d. 130,000
_______58. Refer to Millan Company. What are the equivalent units for material using the weighted average method?
a. 120,000
b. 123,860
c. 128,360
d. 130,000
_______59. Refer to Millan Company. What are the equivalent units for material using the FIFO method?
a. 111,800
b. 120,000
c. 125,500
d. 130,000
_______60. Refer to Millan Company. What is the cost of all units transferred out using the FIFO method?
a. P204,624
b. P191,289
c. P287,004
d. P298,029
– NOTHING FOLLOWS –
Page 16 of 16

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ACC 122: Cost Accounting and Control

Student Activity Sheet Module # 18

Name: ____________________________________________________________ Class number: _______

This concludes the instruction page.

You may now begin answering.

Name: ____________________________________________________________ Class number: _______

_______1. Which of the following statements is correct?

_______2. Which of the following statements is correct?

_______3. Which of the following statements is correct?

_______6. Cost of goods sold is obtained from

Name: ____________________________________________________________ Class number: _______

b. the finished goods inventory records.

_______8. Clean Manufacturing has the following labor costs:

_______10. The job cost sheet does not show

Name: ____________________________________________________________ Class number: _______

_______12. A cost center in a process cost system is a:

_______13. Process costing techniques should be used in assigning costs to products:

_______14. The cost of an equivalent unit is equal to:

Name: ____________________________________________________________ Class number: _______

Units Materials Costs

Name: ____________________________________________________________ Class number: _______

a. 85,000 70,000 70,000

b. Finished goods 18,000

c. Work-in-process - Mixing 5,600

d. Work-in-process - Curing 18,000

Name: ____________________________________________________________ Class number: _______

Transferred to the curing 9,000 P2.00

b. Finished goods 24,000

c. Work-in-process - Curing 24,000

d. Work-in-process - Curing 4,500

Name: ____________________________________________________________ Class number: _______

Name: ____________________________________________________________ Class number: _______

Started in April 250,000

Name: ____________________________________________________________ Class number: _______

Name: ____________________________________________________________ Class number: _______

Name: ____________________________________________________________ Class number: _______

Beginning Work in Process Costs:

Beginning WIP Inventory:

Name: ____________________________________________________________ Class number: _______

Name: ____________________________________________________________ Class number: _______

_______50. Transferred-in cost represents the cost from

Units to EUP Total cost to

Name: ____________________________________________________________ Class number: _______

_______52. A process costing system does which of the following?

Calculates Assigns costs to inventories

Beginning Work in Process Inventory

Beginning Work in Process Inventory

Current Period Costs:

Name: ____________________________________________________________ Class number: _______

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