MULTIPLE CHOICE - COMPUTATIONAL ( SHOW SOLUTIONS) 1. Maganda company manufactures pipes and uses a job order costing system. During May, the following jobs were started (no other jobs were in process) and the following costs were incurred: Job X Job Y Job Z Total Materials P10,000 P20,000 P15,000 P45,000 Direct labor 5,000 4,000 2,500 11,500 P15,000 P24,000 P17,500 P56,500 In addition, estimated overhead of P300,000 and direct labor costs of P150,000 were estimated to be incurred during the year. Actual over head of P24,000 was incurred in May; overhead is applied on the basis of direct labor costs. If only Job X and Job Z were completed during the month, the journal entry to record the initiation of all jobs would be: a. Work-in-process P79,500 Material P45,000 Wages payable 11,500 Applied factory overhead 23,000 b. Work-in-process P80,500 Direct materials P45,000 Direct labor 11,500 Factory overhead 24,000 c. Work-in-process P80,500 Direct materials P45,000 Direct labor 11,500 Applied factory overhead 24,000 d. Direct labor P11,500 Direct materials 45,000 Work-in-process P56,500 2.Last month, Sago 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. Sago's inventory accounts show the following balances: Beginning Ending Finished goods P22,000 P17,000 Work in process 15,000 17,600 Materials 20,000 18,000 What is the cost of goods sold at normal costing? a. P219,600 b. P214,600 c. P108,000 d. P217,200 3. Banaba Company provided the inventory balances and manufacturing cost data for the month of January. Under Banaba's cost system, any over-or underapplied overhead is closed to the cost of goods sold accounts at the end of the calendar year. Inventories: January 1 January 31 Direct material P30,000 P40.000 Work-in-process 15,000 20,000 Finished goods 65,000 50,000 Month of January Factory overhead applied P150,000 Cost of goods manufactured 515,000 Direct materials used 190,900 Actual factory overhead 144,000 What is the cost of goods sold at actual costing? a. P509,000 b. P524,000 c. P530,000 d. P536,000

4. Rose Co. had 3,000 units in work in process at April 1, 2018, which were 60% complete ass to conversion cost. During April, 10,000 units was completed. At April 30, 4,000 units remained in work in process which were 40% complete ass to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April? a. 9,000 b. 9,800 c. 10,000 d. 11,000

5.Department CC has the following April production information: Beginning work in process 24,000 units Units started during the month 780,000units Units transferred to next operation in April 744,000 units Ending work in process (40% complete) 60,000 units Beginning work in process cost P 120,000 April's production cost 5,256,000 The unit cost of production is: a. P 7.00 b. P20.22 c. P 6.89 d. P 6.69 6.The Masaya Corporation manufactures only one product, and the raw materials must pass through Processes A, B, and C, in that order, before completion. On October 1, the inventories of Process C and Finished Goods were:

Process C - 1.200 units, 2/3 completed, P4,200. Finished Goods - 1,000 units, at P3.00 per unit. During October, 2,000 units valued at P5,000 were transferred in from Process B. Direct labor cost in Process C was P3,100 and the overhead cost applied to Process C was P3,200. The inventories on October 31 were: Process C - 600 units, 1/2 completed. Finished Goods - 1,300 units. The conversion cost per equivalent unit for October is: a. P1.50 b. P2.75 c. P3.00 d. P3.50

(7-8.) Questions 7 and 8 are based on the following information: A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats. and the bats are then transferred to the Finishing Department where a sealant is applied The Forming Department began manufacturing 10.000 "Casey sluggers" during the month of May. There was no beginning inventory. Costs for the Forming Department for the month of May were as follows: Direct materials. P33,000 Conversion costs 17,000 Total 150 000 A total of 8,000 bats were completed and transferred to the Finishing Department, the remaining 2,000 bats were still in the forming process at the end of the month. All of the Forming Department's direct materials were placed in process, but, on average, only 25% of the conversion cost was applied to the ending work-in-process inventory. 7. The cost of the units transferred to the Finishing Department is a. P50,000 b. P40,000 c. P53,000 d. P42,400 8. The cost of the work-in-process inventory in the Forming Department at the end of May is: a. P10,000 b. P 2,500 c. P20,000 d. P 7,600

9. Orchids Company has a process cost system using the FIFO cost flow method. All materials are introduced at the beginning of the process in Department One. The following information is available for the month of January 2018: Units Work in process. 1/1/18 (40% complete ass to conversion costa) 500 Started in January 2,000 Transferred to Department Two during January 2,100 Work in process, 1/31/18 (25% complete ass to conversion costs) 400 What are the equivalent units of production for the month of January 2018? Materials Conversion a. 2,500 2,200 b. 2,500 1,900 c. 2,000 2,200 d. 2,000 2,000 10. Department II of Hope Manufacturing Company presents the following production data for the month of May, 2018: Opening inventory 3/8 completed 4,000 units Started in process 13,000 units Transferred 9,000 units Closing inventory, 1/2 completed 4,000 units 3/4 completed 4.000 units What are the equivalent units of production for the month of May. 2018. FIFO AVERAGE a. 12,500 units 13,000 units b. 17,000 units 12,500 units c. 12,500 units 14,000 units d. 15,000 units 14,000 units 11. The Ilang-Ilang Corporation, engaged in a manufacturing business and using process costing, gave the following production data for three different situations Stages of completion of the inventories apply to all cost elements. (1) Started in process, 6,500 units, transferred, 5.500 units, in process, 400 units 50% completed and 600 units 25% completed. (2) Beginning inventory, 6.250 units 40% completed; started in process. 25,000 units; transferred, 26,250 units, in process at the end, 3.000 units 50% completed and 2,000 units 25% completed (3) Beginning inventory, 6,000 units 30% completed, started in process, 13,000 units: lost in processing, 500 units from production started this period (loss was normal and occurred throughout the production process); transferred. 14,000 units; in process at the end, 3,000 units 50% completed and 1,500 units 75% completed What are the equivalent production of the three different situations under FIFO and average costing? FIFO AVERAGE 1 2 3 1 2 3 a. 5,850 25,750 14,825 5,850 28,250 16,625 b. 5,850 27,550 18,425 5,580 22,850 15,662 c. 8,550 20,575 15,428 5,508 28,025 16,265 d. 5,058 20,775 12,524 5,850 28,250 16,625 12. Mataba Company sells food processors and manufactures them in a single continuous process. At the end of August there were 200 units valued at P30,095, which consists of P25 200 in materials cost and P4.895 in conversion cost. These were 100% complete as to materials and 25% complete as to conversion cost. 1.200 units were added to production during September, and these had materials costs of P168,000. Processors which have not been completed at the end of September total 200 units and were 100% complete as to materials and 50% complete as to conversion cost Conversion cost during September were P158,125 There were no units lost in process. What are the equivalent units of production tor September? Materials Conversion Cost a. 1,400 1,350 b. 1,200 1,100 c. 1,200 1,150 d. 1,200 1,250 13. Samahan, Inc manufactures a highly sensitive smoke alarm and uses the first in, first-out method for process costing and finished goods costing In costing finished goods, the unit cost for units completed from the work in process at the beginning of the period is kept separate from the unit cost of those started and completed during the period. The total manufacturing costs for the month of June is P264,000 and 2,750 units are completed during the month. The inventories at the beginning of June are: Smoke alarms in process (80% complete) 1,250 units P128,000 Smoke alarms on hand (complete) 600 units 76,800 The inventories at the end of June are: Smoke alarms in process (50% complete) 500 units Smoke alarms on hand (complete) 700 units How would the total costs accounted for be distributed? Work-in Process, End Finished Goods a. P33,000 P92,400 b. P33,000 P79,200 c. P32, 200 P92,400 d. P66,000 P52,800 14. For the month of May, the Cutting Department of Damit Co had B complete ass to the beginning work in process and 50% complete ass the ending work in process. Related data follow: Conversion Units Costs Work in process, 1 May 50,000 P88,000 Units started and costs incurred in May 270,000 572,000 Units completed and transferred to the next department in May 200,000 If the company were using FIFO method, the conversion cost of the work in process in the Cutting Department at the end of May would amount to a. P156,000 b. P254,000 c. P132,000 d. P176,000