I . Last month, Pare Company placed P60,000 of materials into product: fa Coe end of the oy 480.000 wa 200 lower than the Hy ay the direct Sec mater Materials procured during May 201 myoy lever at invente uring May m o. PA7S,000 ; vo" WO he ec B. 375,000 - Pag Company incurred the followin Adapted) : c i 7 120,000: factory overhead, 108,000, 8 ung the month dy 7140,000. Inventories show the following conene mate Th: direct lab Hlals purchas Finished goods .. Ending work in process P30,000 Direct materials 57,500 43,500 How much is the cost of goods Manufactured? a. P443,500 Cc. P386,000 b. 382,000 d. 388,000 (Adapiec' The Printing Department used 8,000 labor hours at P5.60 per hour and ! Binding Department used 4,600 hours at P6.00 per hour. Factory averh sapplied at a rate of P6.00 per labor hour in the Printing Department a P8.00 per labor hour in the Binding Department. Pare's inventory acco. show the following balances: p99 0N v Finished goods .... . 0 Work in process x Materials......... What is the total cost of goods sold? 2. 219,600 c. P1080" %. 214600 d+858 ; SO —_Chaprer ig Pier te 4. The factory ledger: of Diamond Corporation contains the following con data for the year ended December 31, 201! “os inventories Opening Closing Raw materials .. we AO P170,000 Work-in-process.... vo Oo 40,000 Finished G00 «0.0 180,000 220.900 Raw materials USED .voscccsssssesseessv sensor 452,000 Total manufacturing costs charged to production during the year (including raw materials, direct labor and factory overhead applied at the rate of 50% of Direct lADOr COSH) oases ccelesc seen 1,372,000 Compute the: (1) cost of raw materials purchased and (2) direct labor. charged to production during the year: a. (1) P632,000; (2) P240,000 c. (1) P672,000; (2) P720,000 b. (1) P672,000; (2) P480,000 d. (1) P360,000; (2) P480,000 (PhilCPA) 5. National Marketing Corp. uses a job-order costing system. it has three production departments, X, Y, and Z. The manufacturing cost budget for 2011 is as follows: Dept.X Dept.Y — Dept.2 600,000 — P400,000 —P200,000 200,000 500,000 400,000 600,000 100,000 200,000 Direct Materials Direct Labor .. Manufacturing overhead . For Job No. 01-90 which was completed in 2011, direct materials cost was P75,000 and direct labor cost was as follows: Dept. X P foe Dept. Y.. ao Dept. Z. 20) ji it jc der on The corporation applies manufacturing overhead to each job or the basis of direct labor cost, using departmental rates predetermined at the beginning of the year based on the manufacturing cost budget.b 7 yfoctung cost of Jb No. 01-90 which was completedis 2011 1 Cc. P385,000 73500) d. 150,000 (PhiCPA} dato were taken from the records of Best ¢ ‘ompany tow m 08/31/2011 09/30/20 ONES eis on vonerensnnnnnnn P 2 PSo.000 inte es 0.000 95,000 rrshed goods 60,000 8,000 . chases, P46,000. om nates 75% of direct labor cos!, P63,000 ractO9 On dministrotive expenses, 12.5% of soles, P25 000 se ne for September, 2011, P25,000 xe! not he cost of raw materials inventory on August 3), 20112 30,000 cc. P46,000 B 40000 50,000 , PhilCPA + yatCorporation manufactures rattan furniture sets for export and uses the iob order cost system in accounting for its costs. You obtained from the corporation's books ‘and records the following information for the year ended December 31, 2011: - _ Thework in process inventory on January | was 20% less than the work in process inventory on December 31. - The total manufacturing costs added during 20!) was 900.2 based on actual direct materials and direct labor Du! with manufacturing overhead applied on actual direct labor pesc The manufacturing overhead applied to process was “eof direct labor pesos, and it was equal to 25% © fo! manutactuing costs The cost of goods manufactured, also based on ova! die Materials, actual direct labor and applied Mma overhead, was P8S0,000 tH“~~ 860 Chapter jy The cost of direct materials used and the work-in-process inventory a December 31, 2011 Work-in process Direct Materials ee a. ~ ~~ P200,000 b 250.000 c. 250,000 d. 275,000 (PhilCP a) 8. Fusion Company has the following daia on April 30, 2011: April manufacturing overhead..... P30,101.a0 Decrease in ending inventories Materials .. 7 2,430.00 Goods in Process 590.00 Increase in ending inventory: 1,320.40 Finished Goods .... The manufacturing overhead amounts to 50% of the direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing. All materials are purchased F.O.B. shipping point. What is the cost of goods manufactured? a. 180,610.80 c. P182,300.80 b. P181,200.80 d. P183,200.80 (AICPA/PhICPA) 9. The Fork Corporation manufactures one product and accounts for cost by a job-order cost system. You have obtained the following information for the year ended December 31, 2011 from the corporation's books and records: Total manufacturing cost added during 2011 based on actual direct materials, actual direct labor and applied factory overhead on actual direct labor cost... sean P1,000,000 Cost of goods manufactured based on actual direct materials and direct labor and applied faciory overhead... on 970,000 Applied factory overhead to work in process 75% based on direct labor cost ..... seen Applied factory overhead for the year, based Wh on total manufacturing cost ..exkin process INVENtOTY WOS BO% of ending work ing PLOCESS$ nvVentory wa cot of direct materials used for year endec 1 the ie #31 201 Cc. P990,000 370.008 d. 970.500 9: "970,000 cope ws ICP A PHI b. mpioys a job order cost system. Its monuiactu: 1G UE livities ir ef (10046 First month of operation, are summarized as follows I ve 1 yy. 20 —__JOB NU 1207 1202 ~ terials ....-. ect mate ec labor cost Direct labor hours ynits produced P7000 P5,800 11,600 P5,000 P6600 6,000 P8400 = P2400 1,100 1,000 1,400 400 200 100 1,000 300 . ao = it verhead is applied at arate of P2 per direct labor hour for vented. P3 per hour for fixed overhead, Jobs 1201, 1202 and 1203 were completed in July. What is the cosi of the completed jobs? P c. P72,900 B 62305 d. 65900 : , (AICPA) "' S9bNo.010 has, at the end of ihe second week in April, an accumulated 'oldl cost of P4,200. In the third week, P1,010 of direc! materials were used onthe Job, Wenty i st Netty (20) hours of direct labor services were applied to the job al aco SIPS per hour, is i labor fours UtiNg overhead was applied at the basis of P2.50 per a labo for fixed overhead and P? per hour for variable overhead. N0.010 wos the only job completed during the third week. wa862 | _ Chapt, Ie The total cos! =f Job Order No. 010 is: a. P5289 c. P5350 - b. $5,360 d. 5,400 Adopter The Work-in-Process account of the Malinta Company Which us, order cost system follows: eS q ob Work-In-Process April 1 Balance P25,000 Finished Goods .... vn PVD Direct Materials . 50,000 5,450 Direct labor ... 40,000 Overhead Applied . 30,000 Overhead is applied to production at-a predetermined fate, baseg direct labor cost. The work in process on April 30 represents the cost of pn No. 456, which has been charged with direct labor cost Of P3,000 and ns No. 789, which has been charged with applied overhead of P2,400, The cost of direct materials charged to Job No, 456 and Job No. 789 amounted to: - a. P8,700 c. P4,500 b. 7,600 d. 4,200 (AICPA/PhiICP A) The following information were taken from the accounting records of Yanni Music Company for 2011: Increase in raw materials inventory . P 45,000 Decrease in finished goods inventory 150,000 Raw materials purchases 1,290,000 Direct labor payroll 600,000 Factory overhead 900,000 Freight out 135,000 The cost of raw materials used during the period amounted to: P1,245,000 c. P1,335,000 a. b. 1,290,000 d. 1,380,000 adopted!ractures specialized precision elec|roni: e inc. nan End #0322 were started, Estimaje peceigers #! oth orders (60% for #0311) while dire ea) for P00 for #0311 and 400 for #0322. Lab< 0. a erhead rate Is P10 per hour while of April, 755 of the required materials eve the em in the amount of P90,000 and both job orders y yction 360 hours charged to #0311 and 1 ac corte outy rates given. ot + charged to Job Order #0311 was: ane total C8 - 64,080 45,800 c o "59,360 c. 67,600 Adapted Crafts manufactures to customers’ specifications. The comioany uses 5 b order cost system and, for the month of May, 2011, summarized the glowing information: Beginning work in process inventory (five partially completed jobs| Orders completed (eighteen) P 300,000 2,400,000 Orders shipped out (fourteen) 2,000,000 Materials requisitioned 1,700,000 Direct labor cost 800,000 Overhead = 150% of direct labor cost. The month-end work in process inventory was: a. P700,000 c. —P1,400,000 ®. 800,000 d. 1,600,000 (Adapted) 0 fmbo, Inc. manufactured 50 i in 2 lolowing Costs: ure ,000 kilos of compound Am in 2011 at tne Openin, '9 Work-in-process of P8 faa ss Of P88,125. i Of Pe 82,500 of which 90% is direct materials Closing va 2,500 of which 93% is direct labor. ‘Ork-in-process of P67,500. ~ pier t materials issued to production ....._. P 90,000 indir cturing overheadincumed oe jonv gcturing overhead applied \ rm a woe! jabor costs 107,000 * either beginning nor ending work-in- ‘ Process inventory. Who ame cost ‘of jobs completed in January 20112 oy ' wos 302,000 C. — P322,000 310,000 d. 330,000 (AICPA) ny manufactures pipes and uses ajob order costing system. During Aoorhe following jobs were started (no other jobs were in process) and the following costs Were incurred: Job xX JobY *~ JobZ Total ay — —— requisitioned... 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 overhead fP24,000 was incurred in May; overhead is applied on the basis of direct ‘ebor pesos. If only Job X and Job Z were completed during the month, ‘he dppropriate entry to record the initiation of all jobs would be 9. Work-in-process . 79,500 Direct materials P4S,000 Direct labor .. . 11.500 Applied factory overhead 23,000 Be Workin proce S$ anne 80,500 Direct materials 45,000 Direct labor .. 41.500 Factory overhead 24,000NS 872 . eter 1, ¢. Work-in-process .. P80,500 Direct materials . P Direct labor ..... 45, Applied factory overhead. Wy - ‘009 d. Direct labor P11,500 Direct materia 45,000 Work-in-proces: P 56,500 (Clay 35. Tastee-Treat Company prepares, packages, and distributes six frozen vi in two difierent sized containess. The different vegetables and citer 221s Prepared in large batches. The company employs a normal cost; job orcier cas ae system. Manufacturing overheadiis assigned to batches by a Predetemineg, on the bass of rect labor hous. The manufacturing overhead costs men the company during two recent years (adjusted for changes using current py by and wage rates) are presented below. Prices 2011 2012 ON 2012 2,760,000 2,160,000 Direct labor hours worked... oe Manufacturing overhead costs incurred (adjusted for changes in current Prices and wage rates): Indirect labor .... P11,040,000 _P._ 8,640,000 Employee benefit: 4,140,000 3,240,000 Supplies 2,760,000 2,160,000 Power ... 2,208,000 1,728,000 Head and light .. 552,000 552,000 Supervision .. 2,865,000 2,625,000 Depreciation 7,930,000 7,930,000 Property taxes andinsurance .. 3,005,000 _3,005,000 Total overhead costs... P34,500,000 What is the variable overhead rate? a. P7.20 c. P6.30 b. 5.40 d. 7.70 (Adapted) ae information in No. 35, what wi ill + labor hour level of oetivily ne for overhead rate ne 7.70 c. P 576 b 13.46 d. 12.52 (Adapted) company operates its factory on a two shift jan = f 15%. if basis and pays alate ; ve aitterernni Ea ai also pays a premium of 50% for overtime Srotk. since Reger me ww ‘ wes only for stock, the cost system provide uniform a CeO i ne ly charges for production done without regard Penitt worked oF WOT done on an overtime basis. Overtime and late-shift girerentia’s gre included in Regan's factory overhead application rate oe MOY payroll for production workers is as.follows: - - ages 1 basis directlabor rates P325,000 shift differentials . eareaeeee 25,000 overtime premiums veces 10,060 for the month of May. what amount of direct labor should Regan charge to work-in-process? a. P325,000 c. P350,000 b. 335,000 d. 360,000 (AICPA) e basis of direct labor hours overhead on th ar are as follows plies factory jor and overhead forthe ye % Woodman Company ap} Budget and actual data for direct labs Budget Actual Direct labor hours aes a 600,000 550,000 Factory overhead costs . 720,000 680,000 q Ihe factory overhead for Woodman tor the year'® Q. Overapplied by P20,000 Underapplied by P’ 20,000 Underapphec 40,000 AIC b. Overapplied by P40.000874 39. . A company manufactures plastic products for the hom NS oe Ch At the beginning of the year, Smith Inc, budgeted the following: Units eaeeeeenneeneneee sue scans sag 0 Sales .... er 009 smtsone PQQ, Less: 000 Total variable expenses mien Total fixed expenses ....... Net income ........ Factory overhead: Variable... Fixed... There were no beginning inventories. Al the end of the year, there was work-in-process: total factory overheod incurred in the Year was P39,509, A underapplied factory overhead was P1,500. Factory overhead 7 Was applied the bosis of budgeted unit production. How many units were Produced hisyeur a. 10,250 ¢. 10,000 b. 9,500 d. 9,250 (Adapted) € ANd restaurant ei Customers and le budget covering next year's market. The company also does contract work for oth utilizes a job order Costing system. The flexi expected range of activity is Direct labor hours.... 50,000 110,000 Machine hours... 40,000 88,000 Variable O/H costs P100,000 220,000 Fixed O/H costs 150,000 150,000 Total O/H costs .... P250,000 370,000 A predetermined overhead rate based on direct labor hours is used to opply otal overhead. Management hos estimated that 100,000 direct labor hous will be used next year. The predetermined overhead rate per direct labor hour to be used to Opply total overhead to the individual jobs next year's a. P3.36 Cc. P3.70 b. 350 d. 388 (ca —_ost - we se in had the following information, felating to 201) ne! ethead . I ted factory OF ™ P7400 0 foclorY overhead .. Pa ACK qtactory overhead applied ¢ ROUTS P76,500 esimate? taba . 44000 caer decides fo use the actual results from 2011 1 > the soe read 1° what wil the 2012 overhead rale ms determine the peo a P1690 c.. PI738 b 1.700 d. 1.740 (Adapted) any_uses a predetermined overhead rate. XYZ prepared the COMP’ ct a ‘ mind budget at the beginning of the year: Direct labor COST... reensniee — P12,000 foctory overhead... 25,000 pirect labor Nou's.. 9.000 Machine hours.. 1,500 pying the month of January, the cost sheet for order number 100 indicates mm) of raw materials, P50 of direct labor, 10 hours of direct labor, and 5 mochine hours. Order number 100 consists of 49 units of product. XYZ appiies wvethead based on direct labor cost. What amount of overhead should be opplied to order number 100? a. P50.00 c. P20,00 b. 104.17 d. 87.62 (Adaptec © Althe end of the last fiscal year, Baehr Company had Ihe following acco balances. 000 960,000 38,000 000 Overapplied overhead Cost of goods sold Hotkin-process inventory inished goods inventory ee876. 44, 45. 46. ——— Ch ter The most common treatmeni of the overapplied overiead Would bo. to a. Prorate it between work-in-process inventory and finished ooq inventory. & is b. Prorate it among work-in-process inventory linishea Goods inventory and cost of goods sold. Reportit as miscellaneous operating revenue or I! -: income Stotement Credit it to cost of goods sold. (CMa) The appropriate method for the disposition of underapplied or Overapplieg factory overhead. ao is to cost of goods sold only. is to finished goods inventory only. is apportioned to cost of goods sold and finished goods inventory, depends on the significance of the amount. ange (CMa) During the current accounting period, a manufacturing company Purchased P70,000 of raw materials, of which P50,000 of direct materials and P5.000 of indirect materials were used in production. The company also incurred P45,000 of total labor costs and P20,000 of other factory overhead costs. An analysis of the work-in-process Control account revealed P40,000 of direct labor costs. Based upon the above information, what is the total amount accumulated in the factory overhead control account? a. —P25,000 c. —P45,000 b. 30,000 d. 50,000 (CIA) Accompany allocates overhead to jobs in process using direct labor costs, raw material costs, and machine hours. The overhead application rates for the current year are: 100% of direct labor 20% of raw materials P17 per machine hour A particular production run incurred the following costs: Direct labor, P8,000 Raw materials, P2,000 . A total of 140 machine hours were required f- _1e production un —| coslits aa ne ra total cost that would be Chargeg 10 the 5.-., is tl not is J ne wi p18,000 c P34,780 18,400 None of the «, ny uses AjOb Costing system ang pane pasis of direct labor cost. Job No. . following costs assi 1, had the : 9N€d as of that o Janue direct labor, P80,000; and factory overhead P| pao od costs were incurred during the year, _; selec Applies over} 75, the ony, , le to jobs: wocoonet materials Direct labor .... traceable to jobs: Factory materials and supplies Indirectiabor .... Plant maintenance . Depreciation on factory equipme: Other factory costs..... ~345.000 523,000 not 76,000 459,000 Pane's profit plan for the year included budgeted direct labor of P320.000 and factory overhead of P448,000. Assuming no work-in-process on December 31, Pane's overhead for the year was ag. P11,000 overapplied c. P11,000 underapplied b. 24,000 overapplied 7 d. 24,000 underappiied (cla) # Avery Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of October, Avery's budgeted overhead was based ona budgeted volume of 100,000 direct labor hours. Actual Temeed amounted to P325,000 with actual direct labor hours totaling 0.000. How much was the overapplied or underapplied overhead &_P30.000 overapplied c. P5,000 overapplied 30.000 und i d. 5,000 underappiied inderapplied (AICPA) Pea 878 NE Chaprey a 49, The followir @ standard cost variance analysis report on direct ‘Abo, Sl. Cost fora on of a manufacturing company: Actual Actual Standard Hours at Hours at Hours at Actual Standard Standard Job Wages Wages Wages 213 P 3,243 P 3,700 P 3,100 215 15,345 15,675 15,000 217 6,754 7,000 6,600 219 19,788 18,755 19,250 2 3,370 3,470 2,650 Totals P48,500 P48,600 P46,600 What is the total flexible budget direct labor variance for the division? a. P 100 favorable “ €. P1,900 favorable b. 1,900 unfavorable d. 2,000 unfavorable . Cannon Cannery, Inc. estimated its factory overhead at P510,000 for the year, based on a normal capacity of 100,000 direct labor hours, Standard direct labor hours for the year totaled 105,000, while the factory overhead control account at the end of the year showed a balance of P540,000. How much was the underapplied factory overhead for the year? a P O c. P27,000 b. 4,500 d. 30,000 (AICPA) Summit Company provided the inventory balances and manufacturing cost data for the month of January. Under Summit's cost system, any over- or underapplied overhead is closed to the cost of goods sold account at the end of the calendar year. Inventories: January! — January 3! Direct materials P30,000 ea Work-in-process 15,000 0 ‘000 Finished goods 65,000 . aa!_— tits eo ww overhead applied......... uO rac ‘ods manufactured Cosy materials used... i a al factory overhead ... f cost of goods sold be if under- o we cos ‘of goods sold? " overapplisd overhend cos a 509,000 c. PS30000 b. 524,000 d 536000 Adopted! same information in No. 51, what would cost of goods so q , ate ceped remand welt ee 0 f goods ld? o, P509,700 cc. P526,300 b. 524,700 d. 530300 (Adapted) worey Company has underapplied overhead of P45,000 for the year Before cted year-end balances derapplied overhead, sele: disposition of the un from Worley's accounting records were Soles 1,200,000 Cost of goods sold 720,000 Direct materials inventory : 36,000 Work-in-process inventory 54,000 90,000 Finished goods inventory derapplied overhead onyear-end balances Under Worley's cost accounting system, over OF un 11 CGS of ‘sdlocated to appropriate inventories and CGS based nits year-end income statement. Worley should ep c. 756,000 9. 682,500 ; oe a 75750 (AICPA)= ~eper 1p Costs of Quality: Spoi’1ge and Defective Units larper Co.'s.» 00] forthe manufacture of 2,200 coats, whichwas 54, done Nae 1! the unit costs presented below, Final inspection of eles disclosed 200 spoiled coats which were sold to a jobber for P6,000, 50) Direct materials .. Direct labor ... Factory overheat P| for spoiled work} allowance of Assume that spoilage loss is charged to all production during August, would be the Unit Cost of the good coats produced on Job 5072 Wha a. PS3.00 Cc. P56.00 b. 55.00 d. 58.60 (AICPA) 5S. Using the same information in No, 54, assume attributable to the exacting specifications of job. What would be the uni a. P55.00 Cc. P58.60 Bb. 57.50 en ) e instead that the Spoilage loss j ‘Job 501 ondis charged to this specie it Cost of the 900d Coats produced On Job 5012 (AICPA) 56. Under Heller Company's job order. cost work (considered n ir the predetermined factory overhead rate. Durit hand saws was Completed at the followi pplied at 150% of direct labor Cost)... We lewe ieee Final inspection disclosed 100 detective saws, which were reworked on Cost of P2 per unit for direct labor. plus overhead at the Breceterming 1 (ale. The defective units fall within the normal range. What is the total rework Cost and to what ACcount should it be charged? a P200 to work-in-process 6b P200 to factory overhead control Cc P500 to work-in-process P50 to factory overhead contro} (AICPA)SRE NAT Hart Company incurred the f find aru of 200 motors: Sllowing costs on Job 109 for oul anu! g mi a aginal cost accumulation: ong pirect materials bun pirect labor ..... aa 660 factory overhead (150% of DL) 2 P2,660 ect costs of reworking 10 units: ect materials . © 100 Direct lobor fic P_ 260 costs were attributable to the exacting specifications of Job and the full rework costs were Charged to this specific job. What is the cost per finished unit of Job 1092 a. P1580 c. P14.00 b. 14.60 d. 13.30 (AICPA) % Using the same information in No. 57, assuming the rework cost were attributable to internal failure or charged to factory overhead, what is the cost per finished unit of Job 109? a. P1580 c. P14.00 b. 14.60 d. 13.30 (Adapted) HE + con Company's Job 205 for the manufacture of 6.600 coats was completed during August 2011 at ihe following unit costs Direct materials . P1.500 Paec! tabor .. os 1.000 meat Overhead (include an allowance of . for spoiled Work) o.oo cece ene cestesteniens 500 P3,000 pi8&2 Cha, Leere, Final inspection of Job 205 disclosed! 600 spoiled coats which, a ajobber for P600,000. Assume that spoilage loss is sharged to omer’ So) during August 2011. i Prosuey lo " What would be the unit cost of the good coats Producey © Job : 2 a. P2,900 c. P3,000 Se b. 2,950 da 3.145 (Phitcp, A) 60. Using the same information in No. 59, assuming the SPoilg cttributable to exacting specifications or chargeable to Particulargs, 8 if would be the unit cost of the good coats Produced on Job 2052 7” Whar a. P2,900 Cc. P3,009 b. 2950 d. 3,145. \ (Adaptec) 61. Simpson Company manufactures electric drills to the exfrcti fice: of various customers. During April 2011, Job 403 for th produce estos diilils was completed at the following costs Per unit: | OF 1.109 Direct materials Direct labor ..... Applied factory overhead Toto ..... Final inspection of Job 403 disclosed 50 defective units and 100 spoiled units. The defective drills were reworked at a total cost of P500, and the spoiled drills were sold to a jobber for P1,500, What would be the unit cost of the good units produced on Job 403? P30 a. P33 c. 2 b. 32 d. (Adapted) 62. Some units of output failed to pass final inspection at the end of the manufacturing process. The Production and inspection Se determined that the incremental revenue from reworking the units exceed the cost of rework. The rewors of the defective units was authorized. o the following costs wefe incurred in reworking the units: Materials requisitioned from stores: P 5,000 Direct materials .......... esate neeneanecnenereeees Pp 300 p14,000 Miscellaneous supplies Direct labor eee sceees atlLy oils facturing overhead budget includes an allowance for rework. ott ined manufacturing overhead rate 150% of dec! labor re 108 counts) to be charged and the appropriate charges for the r ret would be: workin-process inventory control for P19,000. o Woski in-process inventory control for P5,000. and factory overhead p. No tol for P35.300. foclo overhead control for P19,300. © egctory overhead control for P40,300, (CIA) oped ‘accounting situation, assume that there are P45,000 of charges 107 consisting of P25,000 material, 10,000 tect abo, and P 10.000 190g ethead. The job vields 500 units of a product of which 100 are ‘as spoiled with no salvage value. The cost of the spoilage is ined to be P9,000. {f the firm wishes to use this job as the basis for loge stondard for comparson to future wok. the conceptually or WY to express the spoilage rate would be 20% of total inputs ¢. 90% of labor inputs b. 25% of good outputs d. 36% of material inputs (Adapted) 8 4 Gumomela Mfg. Co. started 150 units in process on job order #13. The pime costs placed in process consisted of P30,000 and P 18,000 for materials and direct labor, respectively, and a pre-determined rate was used to chage factory overhead to production at 133-1/3% of the direct labor cost. Upon completion of the job order, units equal to 20% of the good output were rejected for failing to meet strict quality cuntrol requirements. he company sells rejected units as scrap at only 1/3 of production cost, ond bils customers at 150% of production cost. lhe telected units were ascribed to company failure, the billing price of Bb order #13 would be: Pe 86.400 cc. P102.000 © 90.000 d. 108,000 (Adapted) _ tSa ass os oy 008 poor depart... vf we gnount of May 2008 support department Costs allocated to ove gucation® c wool? g 40 500 Cc. P46,100 a "19100 d. 49,125 be (AICPA) distributes the service depart company : Parlment overhead costs o vel producing departments without allocation to the other service j een information for the month of January is presented as follows: ap! Maintenance _ Uiilities 18700 _P9,000 provided maintet z : oe utilities department .. a 0 cing department A fae om producing department B. ae om cunt of utilities department costs distributed to producing The ami department B for January should be a. 73,600 cc. P5,400 b. 4,500 d. 6,000 (AICPA) 4. ling the same information in No. 68, and assume instead that Hartwell Company distributes the service departments’ overhead costs based on ‘he step-down method. Which of the following methods is true? 0. Allocate maintenance expense to departments A and B ©. Allocate maintenance expense to departments A and B and the utilities department. ©. Allocate utilities expense to the maintenance department and departments A ond B. None of the above. opted) (Adaptes =