Review in Midterm Examination - Acc 204
Review in Midterm Examination - Acc 204
Review in Midterm Examination - Acc 204
ACC 204
I. Multiple Choice.
Ans: A
Ans: D
Ans: D
Ans: A
Ans: B
Explanation: B) 2,800,000/50,000 = 56.00
A. PHP560.00
B. PHP281.25
C. PHP22.50
D. PHP20.50
Ans: C
Ans: T
Ans: F
Ans: T
Ans: T
Ans: T
16. There is two basic product costing which are Job order
costing and Process Costing.
A. TRUE
B. FALSE
Ans: T
Ans: F
18. The term "prime cost" refers to: The sum of raw
material costs and direct labor costs.
A. TRUE
B. FALSE
Ans: T
The term "prime cost" refers to the sum of raw materials
costs and direct labor costs.
Ans: T
ANS:F
There is 3 methods: direct, step, and algebraic method
III. PROBLEM SOLVING
Direct materials
purchased ..........................................................P84,000
Direct labor ......................................................… 60,000
Factory overhead ..........................................… .. 80,000
A. P140,000
B. P138,000
C. P144,000
D. P150,000
CALCULATION:
P84,000;DMP + P60,000;DL- (P36,000end- P30,000beg)
= P138,000
ANS: C
ANS: A
Solution:
Direct Materials:
Inventory, July 1 P15,000
Purchases 21,000
Total cost of available materials P36,000
Less: inventory, July 31 16,000
Cost of materials used P20,000
Less: indirect materials used 5,000
Cost of direct materials used in
Production P15,000
Direct labor 12,500
Total factory overhead 11,500
Total manufacturing cost P39,000
Add work in process inventory, July 1 20,000
Total P59,000
Less: work in process inventory, July 31 18,000
Cost of goods manufactured during the month P41,000
ANS: C
SOLUTION:
Sales P740,000
Cost of goods available for sale 650,000
Total manufacturing costs 575,000
Factory overhead 154,000
Direct materials used 164,000
Selling and administrative expenses 51,000
A. P159,000
B. P175,000
C. P168,000
Ans: C
SOLUTION:
INVENTORIES
Beginning Ending
Raw materials P90 P85
Work in process 50 65
Finished goods 100 90
Other data:
Raw materials used P365
Total manufacturing
costs charged to production
During the year
(includes raw materials,
direct labor,
and factory
overhead) 680
Cost of goods available for sale 765
Selling and general expenses 250
ANS:C
Solution:
Beginning finished goods inventory P100
Add: cost of goods manufactured during the year
(P680 + P50 -P65) P665
Total cost of goods available for sale P765
Less: ending finished goods inventory 90
Cost of goods sold during the year P675
9. Assume the following information pertaining to
PATAPOS NAH Company:
Beginning Ending
Finished goods inventory P130,000 P124,000
Work in process inventory 85,000 104,000
Direct materials 117,000 130,000
A) P890,000
B) P896,000
C) P883,000
Answer: C
ANS: B
INVENTORIES
Beginning Ending
Raw materials P90 P85
Work in process 50 65
Finished goods 100 90
Other data:
Raw materials used P365
Total manufacturing
costs charged to production
During the year
(includes raw materials,
direct labor,
and factory
overhead) 680
Cost of goods available for sale 765
Selling and general expenses 250
ANS: C
SOLUTION:
Raw materials used P365
Add: ending inventory of raw materials 85
Materials available during the year P450
Less: beginning inventory of raw materials 90
Purchases of raw materials during the year P360
Estimated factory overhead is P600,000, and the hours
usage of machinery is expected to be 150,000. Factory
overhead is applied at the rate of P10 per direct labor hour.
The wage rate for direct labor is P6 per hour, and the total
number of estimated direct labor hours for the period is:
A. 100,000
B. 150,000
C. 60,000
Ans: 60,000
Solution:
P600,000/x=10/Dlhr
x=60,000