1. The books of Matulungin Manufacturing Co.

showed the following data for the month of October

2014:

Opening and closing inventories:

Oct. 1 Oct. 31
Raw Materials ………………………………………………. P16,000 P17,200
Work-in Process ……………………………………………. 16,000 24,000
Finished Goods ……………………………………………… 28,000 36,000

Direct labor cost, P32,000

Factory overhead, 75% of direct labor cost.
Cost of Goods Sold, P112,500

What is the cost of materials purchased during the month?

a. P87,200
b. P73,200
c. P72,000
d. P71,200

2. Border Company has the following data on April 30, 2014:

April manufacturing overhead ……………………………………………………….. P30,101.80

Decrease in ending inventories:
Materials ………………………………………………………………………….. 2,430.00
Goods in Process ………………………………………………………………. 590.00

Increase in ending inventory:

Finished Goods ………………………………………………………………… 1,320.40

The manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing
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. P180,610.80
b. P181,200.80
c. P182,300.80
d. P183,200.80

3. Trackside Co. employs a job order cost system. Its manufacturing activities in July 2014, its first month
of operation, are summarized as follows:
JOB NUMBERS

201 202 203 204

Direct materials …………………………….. P7,000 P5,800 P11,600 P5,000
 Direct labor cost ……………………………. P6,600 P6,000 P 8,400 P2,400
Direct labor hours …………………………. 1,100 1,000 1,400 400
Units produced ……………………………… 200 100 1,000 300

Manufacturing overhead is applied at a rate of P2 per direct labor hour for variable overhead, P3 per
hour for fixed overhead.

Jobs 201, 202, and 203 were completed in July.

What is the cost of the completed jobs?

a. P62,900
b. P62,500
c. P72,900
d. P65,900

4. The Helper 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, 2014 from the
corporation’s books and records:

Total manufacturing cost added during 1997

based on actual direct materials, actual
direct labor and applied factory overhead
on actual direct labor cost ………………………………………………………………………. P1,000,000

Cost of goods manufactured based on actual

direct materials and direct labor and
applied factory overhead ……………………………………………………………………… 970,000

Applied factory overhead to work in process

based on direct labor cost ……………………………………………………………………… 75%

Applied factory overhead for the year, based

on total manufacturing cost …………………………………………………………………… 27%

Beginning work in process inventory was 80% of ending work in process inventory.

What is the cost of direct materials used for year ended December 31, 2014?

a. P370,000
b. P970,000
c. P990,000
d. P970,500
5. The company uses a job order cost system. The following data were obtained from the company’s
cost records as of June 30. No jobs were in process at the beginning of June, all costs listed being
incurred during the month.

Job Order No. Direct Materials Direct Labor Hours Direct Labor Cost

1001 P 4,320 1,300 P 1,600

1002 9,150 3,700 7,250
1003 11,275 8,200 14,325
1004 3,225 1,500 2,800
1005 6,500 3,200 6,100
1006 2,750 980 1,650

Manufacturing overhead costs are charged to jobs on the basis of P1.50 per direct labor hour. The actual
manufacturing overhead cost for month totaled P30,350. During June, Job Order Nos. 1001, 1002, 1004
and 1005 were completed. Jobs 1001 and 1002 were shipped out and the costumers were billed P9,000
for Job 1001 and P20,000 for Job 1002.

The cost of goods manufactured would be:

a. P55,500
b. P55,495
c. P56,495
d. P57,500

6. The Glen Manufacturing Company manufactures a product exclusively to customer order, employing
a job order cost system.

On August 1, 2014, its work in process inventory (5 partially completed jobs) had a cost of P3,000.

During August, no additional orders were put into production and 18 orders were completed (total cost,
P24,000) of which 14 (cost P20,000) were shipped.

Material requisition in August totaled P17,000 and direct labor cost were P8,000. At the beginning of the
year, 2014, a predetermined overhead rate of 150% of expected direct labor cost was established.

The August 31, 2014 work in process inventory is:

a. P 4,000
b. P14,000
c. P16,000
d. P20,000

7. Job No. 210 has, at the end of the second week in February, an accumulated total cost of P4,200. In
the third week, P1,000 of direct materials were used on Job, together with P10 of indirect materials.

Twenty (20) hours of direct labor services were applied to the job at a cost of P5 per hour.
Manufacturing overhead was applied at the basis of P2.50 per direct labor hour for fixed overhead and
P2 per hour for variable overhead.

Job No. 210 was the only job completed during the third week.

The total cost of Job Order No. 210 is:

a. P5,390
b. P5,360
c. P5,350
d. P5,400

8. Tillman Company uses a job-order cost system and has two production departments, M and A,
Budgeted manufacturing costs for 1997 are as follows:

Department Department
M A
Direct materials ………………………………………………….. P700,000 P100,000
Direct labor ………………………………………………………… 200,000 800,000
Manufacturing Overhead …………………………………… 600, 000 400,000

The actual material and labor costs charged to Job No. 432 during 1980 were as follows:

Direct material ……………………………………………………. P25,000

Direct labor:
Department M ……………………………………….. P 8,000
Department A ………………………………………… 12,000 20,000

Tillman applies manufacturing overhead to production orders on the basis of direct-labor cost using
departmental rates predetermined at the beginning of the year based on the annual budget. The total
manufacturing cost associated with Job No. 432 for 1980 should be:

March 1, balance ………………………………………………………………………….. P 12,000

31, direct materials ……………………………………………………………… 40,000
31, direct labor ………………………………………………………………….... 30,000
31, direct overhead ..……………………………………………………………. 27,000
31, to finished goods ……………………………………………………………. ( 100,000 )

Worrel applies overhead to production at a predetermined rate at 90% based on the direct labor cost.
Job No. 232, the only job still in process at the end of March 1997, has been charged with factory
overhead of P2,250. What was the amount of direct materials charged to Job no. 232?

a. P2,250
b. P2,500
c. P4,250
d. P9,000
9. The work-in-Process account of the Malinta Company which uses a job order cost system follows:

Work-In-Process
____________________________________________________________________________________

April 1 Balance ………………… P25,000 Finished Goals ………………. P125,450

Direct Materials ………………… 50,000
Direct Labor ………………………. 40,000
Fac. Overhead Applied ……… 30,000

Overhead is applied to production at a predetermined rate, based on direct labor cost. The work in
process at April 30 represents the cost of Job No. 456, 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. P.8,700
b. P7,600
c. P4,500
d. P4,200

10. The following data were taken from the records of Charming Company:

08/31/14 09/30/14
Inventories:
Raw materials …………………………………………………………….. P ? P50,000
Work in process ………………………………………………………….. 80,000 95,000
Finished goods ……………………………………………………………. 60,000 78,000

Raw materials purchases, P46,000.

Factory overhead, 75% of direct labor cost, P63,000.
Selling and administrative expenses, 12.5% of sales, P25,000
Net income for September 1997, P25,000.

What is the cost of raw materials inventory on August 31, 2014?

a. P30,000
b. P40,000
c. P46,000
d. P50,000