• No results found

AFAR 14D Cost Accounting (Job Order, Process Costing, JIT Backflush, Activity Based Costing, Joint and ByProducts,Standard Costing )

N/A
N/A
Protected

Academic year: 2021

Share "AFAR 14D Cost Accounting (Job Order, Process Costing, JIT Backflush, Activity Based Costing, Joint and ByProducts,Standard Costing )"

Copied!
9
0
0

Loading.... (view fulltext now)

Full text

(1)

La Salle University La Salle University College of Accountancy College of Accountancy ACADEMIC COUNCIL’s THE FORUM

ACADEMIC COUNCIL’s THE FORUM

ADVANCED FINANCIAL ACCOUNTING AND REPORTING ADVANCED FINANCIAL ACCOUNTING AND REPORTING

DRILL ON COST ACCOUNTING

DRILL ON COST ACCOUNTING

Part 1

Part 1 –– Job Order Costing Job Order Costing 1.

1. Product costing in a manufacturing firm is Product costing in a manufacturing firm is the processthe process of:

of: a.

a. accumulating the company's period costs.accumulating the company's period costs. b.

b. allocating costs among the firm's departments.allocating costs among the firm's departments. c.

c. placing a value on the company's placing a value on the company's fixed assets.fixed assets. d.

d. assigning costs to the firm's inventory.assigning costs to the firm's inventory. 2.

2. Which of the following manufacturers would mostWhich of the following manufacturers would most likely use job-order costing?

likely use job-order costing? a.

a. Chemical manufacturers.Chemical manufacturers. b.

b. Microchip processors.Microchip processors. c.

c. Custom-furniture manufacturers.Custom-furniture manufacturers. d.

d. Gasoline refiners.Gasoline refiners. 3.

3. As production takes place, all manufacturing costs areAs production takes place, all manufacturing costs are added to the:

added to the: a.

a. Work-in-Process Inventory account.Work-in-Process Inventory account. b.

b. Manufacturing-Overhead Inventory account.Manufacturing-Overhead Inventory account. c.

c. Cost-of-Goods-Sold account.Cost-of-Goods-Sold account. d.

d. Finished-Goods Inventory account.Finished-Goods Inventory account. 4.

4. Which of the following statements about materials isWhich of the following statements about materials is false?

false? a.

a. Acquisitions of materials are normally charged toAcquisitions of materials are normally charged to the Purchases account.

the Purchases account. b.

b. The use of direct materials gives rise to a debit toThe use of direct materials gives rise to a debit to Work-in-Process Inventory.

Work-in-Process Inventory. c.

c. The use of indirect materials gives rise to a debitThe use of indirect materials gives rise to a debit to Manufacturing Overhead.

to Manufacturing Overhead. d.

d. The use of indirect materials gives rise to a creditThe use of indirect materials gives rise to a credit to Manufacturing Supplies Inventory.

to Manufacturing Supplies Inventory. 5.

5. Longview Corporation recently usedLongview Corporation recently used ₱₱72,000 of direct72,000 of direct materials and

materials and ₱₱3,000 of indirect materials in3,000 of indirect materials in production activitie

production activities. s. The journal entries The journal entries reflectingreflecting these transactions would include:

these transactions would include: a.

a. a debit to Raw-Material Inventory fora debit to Raw-Material Inventory for ₱₱72,000.72,000. b.

b. a debit to Manufacturing Overhead fora debit to Manufacturing Overhead for ₱₱3,000.3,000. c.

c. a credit to Manufacturing Overhead fora credit to Manufacturing Overhead for ₱₱3,000.3,000. d.

d. a debit to Work-in-Process Inventory fora debit to Work-in-Process Inventory for ₱₱75,000.75,000. 6.

6. Tudors, Inc. purchases and resells a single item ofTudors, Inc. purchases and resells a single item of product. Inventory at the beginning of September product. Inventory at the beginning of September 2017 was 400 units, values at

2017 was 400 units, values at ₱₱1.80 each. Further1.80 each. Further receipts and sales during the month were as follows: receipts and sales during the month were as follows:

Units

Units Pesos Pesos Per Per UnitUnit Sept.

Sept. 8 8 Receipts Receipts 600600 ₱₱2.102.10 Sept.

Sept. 14 14 Receipts Receipts 500 500 ?? Sept.

Sept. 25 25 Sales Sales 1,250 1,250 4.004.00 The company uses the FIFO. Gross margin for The company uses the FIFO. Gross margin for September was

September was ₱₱2,500.2,500.

What was the cost per unit of the 500

What was the cost per unit of the 500 units receivedunits received on Sept. 14? on Sept. 14? a. a. ₱₱2.082.08 b. b. ₱₱2.002.00 c. c. ₱₱1.941.94 d. d. ₱₱1.041.04

Use the following to answer the

Use the following to answer the next two questions:next two questions: Work in process of Alonzo Corporation in July 1, 2017 Work in process of Alonzo Corporation in July 1, 2017 (per general ledger) is

(per general ledger) is ₱₱22,800.22,800. Per cost sheets:

Per cost sheets: Direct

Direct materials materials Direct Direct laborlabor Job 101

Job 101 ₱₱6,0006,000 ₱₱3,0003,000 Job

Job 102 102 8,000 8,000 2,5002,500 Amount charged to Work in process for July 2017 Amount charged to Work in process for July 2017

Direct

Direct materials materials Direct Direct laborlabor Job 101 Job 101 ₱₱3,0003,000 ₱₱1,0001,000 Job Job 102 102 2,000 2,000 1,5001,500 Job Job 103 103 6,000 6,000 2,6002,600 Job Job 104 104 4,500 4,500 2,0002,000 Factory overhead is applied to production based on Factory overhead is applied to production based on direct labor cost. Jobs 101 and 103 are completed direct labor cost. Jobs 101 and 103 are completed during the month.

during the month. 7.

7. Cost of goods put into process must be:Cost of goods put into process must be: a. a. ₱₱42,10042,100 b. b. ₱₱26,86026,860 c. c. ₱₱45,40045,400 d. d. ₱₱49,66049,660 8.

8. The cost of goods manufactured for the month of JulyThe cost of goods manufactured for the month of July is is a. a. ₱₱21,60021,600 b. b. ₱₱15,40015,400 c. c. ₱₱25,56025,560 d. d. ₱₱31,80031,800 9.

9. The accounting records for 2017 of Wagner Music Co.The accounting records for 2017 of Wagner Music Co. showed the following:

showed the following:

Decrease in raw materials inventory

Decrease in raw materials inventory ₱₱45,00045,000 Decrease

Decrease in in finished finished goods goods inventory inventory 150,000150,000 Raw

Raw materials materials purchased purchased 1,290,0001,290,000 Direct

Direct labor labor payroll payroll 600,000600,000 Factory

Factory overhead overhead 900,000900,000

Freight-out 135,000

Freight-out 135,000

The cost of raw materials used for the period The cost of raw materials used for the period amounted to amounted to a. a. ₱₱1,245,0001,245,000 b. b. ₱₱1,290,0001,290,000 c. c. ₱₱1,335,0001,335,000 d. d. ₱₱1,380,0001,380,000 10.

10. The following information relates to Job No. The following information relates to Job No. 2468,2468, which being carried out by Flexy Co. to meet a which being carried out by Flexy Co. to meet a customer’s order.

customer’s order.

Dept.

Dept. A A Dept. BDept. B Direct materials used

Direct materials used ₱₱5,0005,000 ₱₱3,0003,000 Direct

Direct labor labor hours hours employed employed 400 400 200200 Direct labor rate per hour

Direct labor rate per hour ₱₱4.004.00 ₱₱5.005.00 Overhead rate per DL hour

Overhead rate per DL hour ₱₱4.004.00 ₱₱4.004.00 Adm.

Adm. and and other other overhead overhead 20% 20% of of fullfull production cost production cost Profit

(2)

The selling price to the customer for Job 2468 is: a. ₱16,250

b. ₱20,800 c. ₱17,333 d. ₱19,500

11. Hamilton Company uses a job order costing. Factory overhead is applied to production at a budgeted rate of 150% of direct labor costs. any overapplied or underapplied factory overhead is closed to the cost of goods sold account at the end of the month. Additional information is avaiable as follows: Job 101 was the only job in process at January 31, 2017 with

accumulated costs as follows:

Direct materials ₱4,000

Direct labor 2,000

Factory overhead applied 3,000

Jobs 102, 103, and 104 were started during February. Direct materials requisitions for February totaled ₱26,000. Direct labor costs of ₱20,000 were incurred for February. Actual factory overhead was ₱32,000 for February. The only job still in process at the end of February was Job 104, with costs of ₱2,800 for direct materials and ₱1,800 for direct labor.

The cost of goods manufactured for February was: a. ₱77,700

b. ₱79,700 c. ₱78,000 d. ₱85,000

12. Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of ₱27,000 and ₱15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to:

a. ₱0. b. ₱28,500. c. ₱51,300. d. ₱70,500.

Use the following to answer the next three questions: The following were taken from the books o f Marvin Company. January 1 March 31 Raw materials ₱268,000 ₱167,000 Work in process 0 0 Finished goods ₱43,000 ? (100 units) (200 units) Materials purchased ₱1,946,700 Direct labor 2,125,800 Factory overhead 764,000 Sales (12,400 units at ₱535)

The company uses the FIFO method for costing inventories.

13. The number of units manufactured is: a. 11,900

b. 12,000 c. 12,500 d. 15,200

14. The cost of goods manufactured per unit is: a. ₱300

b. ₱350 c. ₱395 d. ₱420

15. The cost of goods sold is: a. ₱4,091,500

b. ₱4,109,500 c. ₱4,901,500 d. ₱4,910,500 Part 2 – Process Costing

16. Which of the following items is not a characteristic of a process cost system?

a. Once production begins, it continues until the finished product emerges

b. The products produced are heterogeneous in nature

c. The focus is on continually producing homogeneous products

d. When the finished product emerges, all units have precisely the same amount of materials, labor, and overhead

17. Britney Company has unit costs of ₱10 for materials and ₱30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to

conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is

a. ₱  45,000 b. ₱  55,000 c. ₱  75,000 d. ₱100,000

18. In the Star Company, the predetermined overhead rate is 80% of direct labor cost. During the month,

₱210,000 of factory labor costs are incurred, of which ₱180,000 is direct labor and ₱30,000 is indirect labor. Actual overhead incurred was ₱200,000. The amount of overhead debited to Work in Process Inventory should be

a. ₱120,000 b. ₱144,000 c. ₱168,000 d. ₱160,000

19. The Assembling Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40%

complete as to materials and conversion costs. The equivalent units of production are

a. 22,600 b. 23,000 c. 24,000 d. 25,000

20. The Amor Company has 2,000 units in beginning work in process, 20% complete as to conversion costs, 23,000 units transferred out to finished goods, and 3,000 units in ending work in process one-third complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. Equivalent units for materials and conversion costs are

a. 22,000 and 24,000 b. 26,000 and 24,000 c. 24,000 and 26,000 d. 26,000 and 26,000

21. Lucas Co. adds materials in the beginning of the process in the Forming Dept., which is the first of two stages of its production cycle. Information converting the materials used in the Forming Dept. in October are as follows:

(3)

Units Costs Work in process, Oct. 1 6,000 ₱3,000 Units stated in October 50,000 25,560 Units comp. & transf. to next dept. 44,000

Using the weighted-average method, what was the materials cost of work in process at October 31? a. ₱3,000

b. ₱6,000 c. ₱5,250 d. ₱6,120

Use the following to answer the next two questions: On April 1, the Collins Co. had 6,000 units of work in Dept. B, the second and last stage of their production cycle. The costs attached to these 6,000 units were ₱12,000 of costs transferred in from Dept. A, ₱2,500 of material cost added in Dept. B and ₱2,000 of

conversion cost added in Dept. B. Materials are added in the beginning of the process in Dept. B. Conversion was 50% complete on April 1. During April, 14,000 units were transferred in from Dept. A at a cost of ₱27,000 and materials costs of ₱3,500 and conversion costs of ₱3,000 were added in Dept. B. On April 30, Dept. B had 5,000 units in work in process 60%

complete as to conversion costs. The costs attached to these 5,000 units were ₱10,500 of costs transferred in from Dept. A, ₱1,800 of materials costs added in Dept. B and ₱800 of conversion costs added in Dept. B. 22. Using the weighted average method, the equivalent

units for the month of April were: Transferred

from Dept. A Materials Conversion a. 15,000 15,000 15,000 b. 19,000 19,000 20,000 c. 20,000 20,000 18,000 d. 25,000 25,000 20,000

23. Using the weighted average method, what was the cost per equivalent unit for conversion cost?

a. ₱4,200/15,000 b. ₱5,800/20,000 c. ₱5,800/18,000 d. ₱5,000/18,000

24. Sanley, Inc. manufactures a product which goes through three consecutive processes, Process 1, Process 2, and Process 3. Data for the month of September 2017 are as follows:

PROCESS

1 2 3

Work in process, beg. ₱8,000 ₱13,000 ₱2,000 Materials added 20,000 4,000 5,000 Conversion costs 10,000 10,000 16,000 Closing work in process 6,000 9,000 4,000

What was the value of the output transferred from Process 3 to the finished goods warehouse for the month of September?

a. ₱63,000 b. ₱65,000 c. ₱67,000 d. ₱69,000

25. Ten-ten Company produces a small standard

component in a process operation. There is a quality control check at the end of the processing. Items which fall this check are sold off as scrap for ₱1.80 per unit. The expected rate of rejection is 10%. Normal loss is not given a cost except that whatever scrap value it has is credited to the process account. The cost/value

of the abnormal loss or gain, n et of scrap, is written off to the profit and loss account.

Materials input 1,000 units ₱5,100

Conversion cost ₱3,000

Output to finished goods 800 units What was the full cost of the finshed output that passed the quality control check?

a. ₱7,040 b. ₱7,920 c. ₱7,200 d. ₱8,100

Use the following to answer the next three questions: Opening inventory 4,000 units

Percentage of completion Value

Materials 100% ₱1,992

Labor 50% 1,074

Overhead 50% 846

Put in process 20,000 units

Materials value ₱12,000

Labor 9,984

Overhead is 100% of labor cost

Units completed and tranferred 21,000 units Units in process at the end 3,000 units

Materials 100%

Labor and overhead 60%

26. The equivalent production for material is Under Average Under FIFO

a. 24,000 20,000

b. 20,000 21,000

c. 20,000 24,000

d. 21,000 20,000

27. The equivalent production for labor and overhead is Under Average Under FIFO

a. 21,000 20,000

b. 24,000 22,000

c. 22,800 20,800

d. 21,000 21,000

28. The total cost of the work in process at the end is Under Average Under FIFO

a. 3,577 3,500

b. 3,477 3,528

c. 3,528 3,477

d. 3,500 3,577

Use the following for the next two questions: Complete the following process account of Lei Manufacturing Company by supplying the peso amounts of (A) and (B) on the credit side of the account. Process Y May 1 May 1-31 6,000 units 1/3 completed ₱4,800 16,000 units completed (A) May 1-31 May 31 Mat. 12,000 @₱0.50 ₱6,000 2,000 units 1/2 completed (B) Labor 3,600 Overhead 5,400

29. The peso amount of the 16,000 units completed (A) is a. ₱17,800

b. ₱18,200 c. ₱17,600 d. ₱16,400

(4)

30. The peso amount of the 2,000 units 1/2 completed (B) is a. ₱2,200 b. ₱1,600 c. ₱2,000 d. ₱1,400

Part 3 – JIT and Backflush

31. The primary objective of just-in-time processing is to a. accumulate overhead in activity cost pools

b. eliminate or reduce all manufacturing inventories c. identify relevant activity cost drivers

d. none of them

32. The benefits of a successful Just-In-Time system include all of the following except:

a. funds tied up in inventories are released for use elsewhere.

b. inventory buffers are increased. c. throughput time is reduced. d. defect rates are decreased.

33. Which of the following is not a b enefit of just-in-time processing?

a. Control of significant inventory balances. b. Enhanced product quality.

c. Reduction of rework costs. d. Production cost savings.

34. A key concept of the JIT inventory system is:

a. the raw materials, work in process, and finished goods inventories of manufacturing companies act as buffers so that operations can proceed

smoothly even if suppliers are late with deliveries or a department is unable to operate fo r a brief period due to breakdowns or other reasons. b. the use of many suppliers so as to ensure rapid

delivery of materials for production.

c. the maintenance of a stock of raw m aterials so that defective materials can be replaced quickly so as to maintain a high rate of productivity.

d. inventories are costly to carry and can be kept to minimum levels or eliminated completely with careful planning.

35. The flow of goods through a JIT system is based on: a. a workstation efficiently completing its processing

of a batch of units so that the units can proceed forward to the next workstation before the next workstation is ready to receive them.

b. processing goods in large batch sizes rather than less economical small batches.

c. maintaining a stockpile of raw materials in anticipation of materials shortages.

d. producing to meet customer demand with no buildup of inventory at any point in the production process.

36. A successful JIT system is based upon which of the following concepts?

a. The company must rely upon a large numb er of suppliers to ensure frequent deliveries of small lots.

b. The company should always choose those suppliers offering the lowest prices.

c. The company should avoid long-term contracts with suppliers so as to exert pressure on suppliers to make prompt and frequent deliveries.

d. A small number of suppliers make frequent deliveries of specific quantities thus avoiding the buildup of large inventories of materials on hand.

37. A company adopting the JIT approach would:

a. produce large batches of products so as to recoup the costs associated with setups.

b. attempt to reduce setup time so as to economically produce in smaller batches. c. adapt a functional plant layout so as to enhance

production flexibility.

d. require workers to become highly specialized in operating a single machine.

38. Which account is used in just-in-time p rocessing? a. Raw materials inventory

b. Work in process inventory c. Merchandise inventory

d. Raw and In-Process inventory

39. Under just-in-time processing, all of the following are received or completed “just in time” except 

a. finished goods. b. raw materials. c. supplies.

d. subassembly parts. 40. Just-in-time processing

a. is based on a just-in-case philosophy. b. results in a push approach.

c. minimizes inventory storage and waiting time. d. all of these.

41. Problems encountered with using traditional product costing for JIT manufacturing usually stem from a. assigning direct materials costs to units of

product.

b. assigning direct labor costs to units of product. c. assigning overhead costs to units of product. d. all of the above

42. A characteristic of the just-in-time manufacturing environment is

a. frequent deliveries of materials b. manufacturing cells

c. little or no inventory of finished product d. all of the above

43. Just-in-time relates to

a. people getting to their job location just in time to begin their work.

b. machinery placed in service just in time to begin production.

c. materials received from suppliers just in time for production needs.

d. all of the above.

44. When JIT manufacturing is used, which of the following costs is considered an indirect product cost?

a. the cost to set up cell equipment b. the cost of maintenance on equipment c. property taxes on the plant

d. salary of the cell supervisor

45. When JIT manufacturing is used, which of the following costs is considered a direct product cost? a. insurance on the plant and equipment

b. repair parts for the machinery c. janitors’ salary

d. salary of the plant supervisor Part 4 – Activity Based Costing

46. When a firm redesigns a product to reduce the number of component parts, the firm is

(5)

b. increasing the value added to the product. c. decreasing product variety.

d. decreasing non-value-added costs.

47. Non-value-added activities that are necessary to businesses, butnot  costs that customers are willing to

pay for are known as

a. business-value-added activities. b. long-term variable activities. c. short-term variable activities. d. superior business activities. 48. The term cost driver refers to

a. any activity that can be used to predict cost changes.

b. the attempt to control expenditures at a reasonable level.

c. the person who gathers and transfers cost data to the management accountant.

d. any activity that causes costs to be incurred. 49. Which of the following statements is true?

a. The traditional approach to costing uses many different cost drivers.

b. Costs that are indirect to products are by definition traceable to directly to products.

c. Costs that are indirect to products are traceable to some activity.

d. All of the above statements are true.

50. Why is it better to use separate overhead rates? a. Some departments are labor-intensive, some are

machine-intensive.

b. Labor rates vary considerably among departments.

c. The resulting overhead rates are all about the same.

d. All jobs require about the same percentage of time in all departments.

51. A company has identified the following costs and cost drivers for the coming year.

Overhead item Cost driver

Budgeted activity

Budgeted overhead Machine set-up Number of

set-up 200 ₱20,000 Inspection Number of inspection 6,500 130,000 Material handling Number of material moves 8,000 80,000 Engineering Number of engineering units 1,000 50,000 Total ₱280,000

The following information was collected on three jobs that were completed during the year:

Job 101 Job 102 Job 103 Direct materials 5,000 12,000 8,000 Direct labor 2,000 2,000 4,000 Units computed 100 50 200 Number of setups 1 2 4 Number of inspections 20 10 30

Number of material moves 30 10 50 Number of engineering hours 10 50 10

Budgeted direct labor cost was ₱100,000 and budgeted direct material cost ws ₱280,000.

If the company uses activity-based-costing, how much overhead cost should be assigned to Job 103?

a. ₱1,300 b. ₱2,000 c. ₱5,000 d. ₱5,600

52. One of Alien Company’s activity cost pools is machine setups, with estimated overhead of ₱300,000. Alien produces slacks (400 setups) and shirts ( 600 setups). How much of the machine setup cost pool should be assigned to slacks?

a. ₱0

b. ₱120,000 c. ₱150,000 d. ₱180,000

53. Empire Company makes two products, E and M. E is being introduced this period, whereas M has been in production for 2 years. For the period about to begin, 1,000 units of each product are to be manufactured. The only relevant overhead item is the cost of

engineering change orders. E and M are expected to require eight and two change orders, respectively. E and M are expected to require 2 and 3 machine hours, respectively. The cost of a change order is ₱600. If Empire applies engineering change order cost on the basis of machine hours, the overhead cost per unit to be assigned to E and M, respectively, are a. ₱2.40 and ₱3.60, respectively

b. ₱3.60 and ₱2.40, respectively c. ₱4.80 and ₱3.60, respectively d. ₱3.60 and ₱4.80, respectively

54. Empire Company makes two products, E and M. E is being introduced this period, whereas M has been in production for 2 years. For the period about to begin, 1,000 units of each product are to be manufactured. The only relevant overhead item is the cost o f

engineering change orders. E and M are expected to require eight and two change orders, respectively. E and M are expected to require 2 and 3 machine hours, respectively. The cost of a change order is ₱600. If Empire is using direct tracing, the amount of overhead per unit that will be assigned to E and M, respectively, are

a. ₱2.40 and ₱3.60, respectively b. ₱3.60 and ₱2.40, respectively c. ₱4.80 and ₱1.20, respectively d. ₱1.20 and ₱4.80, respectively

55. Wesleyan University Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital’s indirect costs:

Activity Activity Rate Room and meals ₱150 per day

Radiology ₱ 95 per image

Pharmacy ₱ 20 per physician order Chemistry lab ₱ 85 per test

Operating room ₱550 per operating room hour The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows: Patient Flor Patient Laura Number of days 7.0 3

(6)

Number of images 4.0 2 Number of physician orders 5.0 1

Number of tests 6.0 2

Number operating room hours 4.5 1 Determine the activity cost associated with Patient Flor:

a. ₱4,500 b. ₱4,550 c. ₱4,495 d. ₱4,515

Use the following to answer the next two questions: Hughes Company produces three products with the following production and cost information:

Model A Model B Model C Units produced 2,000 6,000 12,000 Direct labor hours (total) 4,000 2,000 4,000

Number of setups 100 150 250

Number of shipments 200 225 275

Engineering change orders 15 10 5 Overhead costs include setups ₱90,000; shipping costs ₱140,000; and engineering costs ₱180,000.

56. What would be the per unit overhead cost f or Model A if direct labor hours were the allocation base?

a. ₱20.50 b. ₱41.00 c. ₱82.00 d. ₱76.00

57. What would be the per unit overhead cost fo r Model A if activity-based costing were used?

a. ₱20.50 b. ₱74.00 c. ₱82.00 d. ₱76.00

58. The overhead rate for Machine Setups is ₱100 per setup. Products A and B have 80 and 60 setups, respectively. The overhead assigned to each product is

a. Product A ₱8,000, Product B ₱8,000 b. Product A, ₱6,000, Product B ₱6,000 c. Product A ₱8,000, Product B ₱6,000 d. Product A, ₱6,000, Product B ₱8,000

59. Sylvia Company has identified an activity cost pool to which it has allocated estimated overhead of

₱1,920,000 and determined the expected use of cost drivers per that activity to by 160,000 inspections. Widgets require 40,000 inspections, Gadgets 30,000 inspections, and Targets, 90,000 inspections.

The overhead assigned to each product is a. Widgets ₱40,000, Gadgets ₱30,000, Targets

₱90,000

b. Widgets ₱480,000, Gadgets ₱360,000, Targets ₱1,080,000

c. Widgets ₱360,000, Gadgets ₱480,000, Targets ₱1,080,000

d. Widgets ₱480,000, Gadgets ₱360,000, Targets ₱1,080,000

60. Toylandia Company manufactures two products, X-MAN and Machman. Toylandia's overhead costs consist of setting up machines, ₱400,000; machining, ₱900,000; and inspecting, ₱300,000.

Information on the two products is:

X-MAN Machman

Direct labor hours 15,000 25,000

Machine setups 600 400

Machine hours 24,000 26,000

Inspections 800 700

Overhead applied to Machman using activity-based costing is

a. ₱  640,000. b. ₱  768,000. c. ₱  832,000. d. ₱1,000,000.

Part 5 – Joint and By Product

61. When allocating joint process cost based on tons of output,all products will

a. be salable at split-off.

b. have the same joint cost per ton.

c. have a sales value greater than their costs. d. have no disposal costs at the split-off point. 62. Which of the following statements istrue regarding

by-products or scrap?

a. Process costing is the only method that should result in by-products or scrap.

b. Job order costing systems will never have by-products or scrap.

c. Job order costing systems may have instances where by-products or scrap result from the production process.

d. Process costing will never have by-products or scrap from the production process.

63. Incremental revenues and costs need to be considered when using which allocation method?

a. Physical measures b. Sales value at split-off c. Either a or b

d. Neither a nor b

64. For purposes of allocating joint costs to joint products using the relative sales value at split-off method, the costs beyond split-off

a. are allocated in the same manner as the joint costs.

b. are deducted from the relative sales value at split-off.

c. are deducted from the sales value at the point of sale.

d. do not affect the allocation of the joint costs. 65. The method of pricing by-products/scrap where no

value is assigned to these items until they are sold is known as the

a. net realizable value at split-off point method. b. sales value at split-off method.

c. realized value approach.

d. approximated net realizable value at split-off method.

66. Lego Plastics, Inc. has two joint products, ABBA and ADDA, and uses the net realizable value method of allocating joint costs. The total joint costs for the year 2017 amounted to ₱300,000. During the year,

additional processing costs after split-off were ₱160,000 for ABBA and ₱240,000 for ADDA. Lego produced 16,000 units of ABBA and 8,000 units of ADDA during the year. The selling price for ABBA is ₱20.00 and for ADDA is ₱50.00.

(7)

The portion of joint costs allocated to ADDA during the year is a. ₱175,000 b. ₱225,000 c. ₱180,000 d. ₱150,000

67. Janice Corporation processes direct materials up to the split-ff point, where products R and S are produced and therefore sold. For the month just ended, the following information were made available

Direct materials processed- 20,000 gallons (yield-19,000 gallons of good product and 1,000 gallon of shrinkage)

Production Unit selling price R 10,000 gallons ₱1,500 per gallon S 9,000 gallons ₱1,000 per gallon The cost of buying 20,000 gallons of direct materials and processing up to split off point to yield a total of 19,000 gallons of good products was ₱19,500,000. The beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending inventories amounts reflected 600 gallons for R and 1,050 gallons for S.

Using the volume of production as the basis for allocating joint costs, the assigned costs to R and S would be

a. R, ₱ 9,750,000.00 and S, ₱9,750,000.00 b. R, ₱10,550,000.00 and S, ₱8,950,000.00 c. R, ₱10,028,571.43 and S, ₱9,471,426.57 d. R, ₱10,263,157.89 and S, ₱9,236,842.11

Use the following to answer the next three questions: Comely Products manufatures three products, R, S and T, in a joint process. For every ten kilos of raw

materials input, output is five kilos of R, three kilos o f S, and two kilos of T. During August, 50,000 kilos of raw materials costing ₱120,000 were processed and completed, with joint conversion costs of ₱200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs:

Product Further processing cost Selling price

R ₱30,000 ₱10.00

S 20,000 12.00

T 30,000 15.00

68. The unit cost of Product R is: a. ₱  7.12

b. ₱  8.00 c. ₱10.00 d. ₱25.32

69. Assuming that all units are sold, the gross margin on sales for Product S is:

a. ₱80,000 b. ₱72,000 c. ₱60,000 d. ₱48,000

70. If all units of Product T are sold, and selling and administrative expenses are 20% of sale, the net income from the sale of Product T is:

a. ₱18,000 b. ₱22,000 c. ₱24,000 d. ₱64,000

71. Lee Company produces two products in a single

operation, Bex and Rom. Joint production cost for June 2017 were ₱30,000. During the month, further

processing costs beyond split-off point needed to convert the products into salable form were ₱25,000 and ₱35,000 for 1,600 units of Bex and 800 units of Rom, respectively. Bex sells for ₱50 per unit and Rom sells for ₱100 per unit. Lee uses the net realizable method for allocating joint product costs.

For June 2017, the joint cost allocated for product Bex were

a. ₱20,000 b. ₱16,500 c. ₱13,500 d. ₱10,000

72. Life Company manufactures products X and Y from a joint process that also yields a by-product Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows:

Units produced Joint costs SV at SOP

X 20,000 ? ₱300,000

Y 20,000 ? 150,000

Z 10,000 ?_____ 10,000

Total 50,000 ₱262,000 ₱460,000

Joint costs were allocated using SV at SOP method. The joint costs allocated to Product X were

a. ₱75,000 b. ₱100,000 c. ₱150,000 d. ₱168,000

Use the following to answer the next two questions: From a particular joint process, Knives Company produces products, X, Y and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 2017, all three products were processed beyond split-off. Joint production costs for the year were ₱60,000. Sales value and costs for 2017 are as follows:

X Y Z

Units produced 6,000 4,000 2,000 Sales value at SOP ₱25,000 ₱41,000 ₱24,000 If processed further

Final Sales Value Separable costs 42,000 9,000 45,000 7,000 32,000 8,000 Joint costs are allocated to the products in proportion to the relative physical volume of output.

73. The relevant unit cost for a decision to sell Product Z or process further is

a. ₱5.00 b. ₱12.00 c. ₱4.00 d. ₱9.00

74. To maximize operating income, Knives would subject the following products to additional processing: a. X only

b. X, Y and Z c. Y and Z only d. Z only

75. In Burns Company produces two joint products, X and Y. in separating products X and Y a by -product is also

(8)

produced. During the month of July, 20,000 gallons of input were processed producing 12,000 gallons of X, 7,000 gallons of Y, and 1,000 gallons of the by-product. The materials and conversion costs i ncurred to

process and separate the products amounted to

₱57,000. The following were taken from the books f or the month of July.

Addt’l

Processing Cost Sales Price Sales Units

X ₱0.50/gallon ₱6.50 10,000

Y 0.75/gallon 5.50 5,000

Z 0.10/gallon 2.00 700

Using physical measure to allocate the joint costs, the total manufacturing cost per unit of X, assuming that the by-product is valued at zero cost at the split-off point, is

a. ₱3.50 b. ₱3.75 c. ₱3.40 d. ₱3.65

Part 6 – Standard Costing

76. RTW Co. manufactures a “one-size-fits-all” ready-to-wear outfit and uses a standard cost system. Each unit of finished outfit contains two yards of fabric that cost ₱75 per yard. Based on experience, a 20% loss on fabric input is incurred. For each unit of outfit, the standard materials cost is

a. ₱150.00 b. ₱180.00 c. ₱187.50 d. ₱200.00

77. Dahl Co. uses a standard costing system in connection with the manufacture of a “one size fits all” article of clothing. Each unit of finished product contains 2 yards of direct material. However, a 20% direct

material spoilage calculated on input quantities occurs during the manufacturing process. The cost of the direct material is ₱3 per yard. The standard direct material cost per unit of finished product is

a. ₱4.80 b. ₱6.00 c. ₱7.20 d. ₱7.50

78. Fleece Company uses a standard-costing system in relation to its manufacture of scarves. Each finished scarf contains 1.5 yards of direct materials. However, a 25% direct materials spoilage, which is calculated based on input quantities, occurs during the manufacturing process. The cost of th e direct materials is ₱2.00 per yard. The standard direct materials cost per unit of finished product is a. ₱2.25

b. ₱3.00 c. ₱3.75 d. ₱4.00

79. Garland Company uses a standard cost system. The standard for each finished unit of product allows for 3 pounds of plastic at ₱0.72 per pound. During

December, Garland bought 4,500 pounds of plastic at ₱0.75 per pound, and used 4,100 pounds in the

production of 1,300 finished units of product. What is the materials purchase price variance for the month of December?

a. ₱117 unfavorable. b. ₱123 unfavorable. c. ₱135 unfavorable. d. ₱150 unfavorable.

80. JKL Company has a standard of 15 parts of component X costing P1.50 each. JKL purchased 14,910 units of component X for P22,145. JKL generated a P220 favorable price variance and a P3,735 favorable quantity variance. If there were no changes in the component inventory, how many units of f inished product were produced?

a. 994 units. b. 1,090 units. c. 1,000 units d. 1,160 units

81. The material mix variance for a product is ₱500 unfavorable, and the material yield variance is ₱600 favorable. This means that the material

a. Price variance is ₱100 favorable. b. Quantity variance is ₱100 favorable.

c. Price variance is unfavorable but the amount cannot be determined from the information given. d. Quantity variance is ₱1,100.

82. Margolos, Inc. ends the month with a volume va riance of ₱6,360 unfavorable. If budgeted fixed factory O/H was ₱480,000, O/H was applied on the basis of 32,000 budgeted machine hours, and budgeted variable factory O/H was ₱170,000, what were the actual machine hours (AH) for the month?

a. 32,424 b. 32,000 c. 31,687 d. 31,576

83. Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours allowed for October would be:

a. 625 hours b. 500 hours c. 600 hours d. 250 hours

84. Yola Co. manufactures one product with a standard labor cost of 4 hours at ₱12.00 per hour. During June 1,000 units were produced using 4,100 hours at ₱12.20 per hour. The unfavorable direct labor efficiency variance was

a. ₱1,220 b. ₱820 c. ₱1,200 d. ₱400

85. JKL Company is using a direct labor cost standard of 4 hours and a ₱12 wage rate per hour for one of its products. Planned production was 300 units, but actual production was 250 units, using for each unit 3 labor hours at a ₱13 wage rate. What is the labor price variance?

a. ₱750 unfavorable. b. ₱900 unfavorable. c. ₱1,200 favorable. d. ₱750 favorable.

Use the following to answer the next five questions: ABC Company employs a standard absorption system for product costing. The standard cost of its product is follows:

Raw materials ₱14.50

Direct labor 2 DLH @ ₱8 16.00

Manufacturing Overhead 2 DLH @ ₱11 22.00

(9)

The manufacturing overhead rate is based upon a normal annual activity level of 600,000 direct labor hours. ABC planned to produce 25,000 units each month during 2017. The budgeted manufacturing overhead for 2017 is as follows:

Variable ₱3,600,000

Fixed 3,000,000

₱6,600,000 During November of 2017, ABC Company produced 26,000 units. ABC used 53,500 direct labor hours in November at a cost of ₱433,350. Actual manufacturing overhead for the month was ₱260,000 fixed and ₱315,000 variable. The total manufacturing overhead applied during November was ₱572,000.

86. The variable manufacturing overhead spending variance for November is

a. ₱9,000 unfavorable b. ₱4,000 unfavorable c. ₱11,350 unfavorable d. ₱6,000 favorable

87. The variable manufacturing overhead efficiency variance for November is

a. ₱3,000 unfavorable b. ₱9,000 unfavorable c. ₱1,000 favorable d. ₱12,000 unfavorable

88. The fixed manufacturing overhead spending (budget) variance for November is

a. ₱10,000 favorable b. ₱10,000 unfavorable c. ₱6,000 favorable d. ₱4,000 unfavorable

89. The fixed manufacturing overhead volume variance for November is

a. ₱10,000 favorable b. ₱10,000 unfavorable c. ₱3,000 unfavorable d. ₱22,000 favorable

90. The total variance related to efficiency of the manufacturing operation for November is a. ₱9,000 unfavorable

b. ₱12,000 unfavorable c. ₱21,000 unfavorable d. ₱11,000 unfavorable

References

Related documents

1 0 )を認めた。 求めた。それぞれ各被験者群における第 3 次,第 4 次お よび第 5 次の階数での解析時間 Omsec ~ lOOOmsec (200 msec

• Students are able to design and build a digital system using VHDL and other FPGA techniques, and then im- plement it on an Altera DE1 board.. Since digital design using FPGA can

In addition to AR being a technology which augments the sense of our perceived reality through sight, it can also potentially augment end-users missing senses such as

Clair Jaycee Arms Mt Vernon Plaza Nazareth Towers Oakwood Apartments Park Place Victorian Heritage East Pages 8 -10 Argus Court Argus Green Barnett Plaza Bexley Heritage

Throughout this chapter, the narrative of the African Caribbean communities in Leeds has been analysed through the coverage of events in the early part of the decade including

relationships between these data classes. A data model includes a blueprint describing the data classes and relationships between data classes for human consumption and a data

Today, you may prefer not to rely on an alarm or a digital communicator (that sends the alarm signal down the phone line to the alarm receiving centre) to alert the police, let

We kindly invite you to participate in the 16 th conference of the European Association of Registrars (EVS) that will be held on 26 th and 27 th May 2016 in the university town