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    CVP

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    Dan Ryan
    The document provides inventory and cost data for Potras Company. It asks multiple choice questions about calculating the cost of raw materials used, cost of goods manufactured, and cost of goods sold based on the information given. The correct answers are: a) P26,000, a) P114,000, and a) P131,000 respectively.

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    CVP

    Uploaded by

    Dan Ryan
    185 views2 pages
    The document provides inventory and cost data for Potras Company. It asks multiple choice questions about calculating the cost of raw materials used, cost of goods manufactured, and cost of goods sold based on the information given. The correct answers are: a) P26,000, a) P114,000, and a) P131,000 respectively.

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    The document provides inventory and cost data for Potras Company. It asks multiple choice questions about calculating the cost of raw materials used, cost of goods manufactured, and cost of goods sold based on the information given. The correct answers are: a) P26,000, a) P114,000, and a) P131,000 respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    185 views2 pages

    CVP

    Uploaded by

    Dan Ryan
    The document provides inventory and cost data for Potras Company. It asks multiple choice questions about calculating the cost of raw materials used, cost of goods manufactured, and cost of goods sold based on the information given. The correct answers are: a) P26,000, a) P114,000, and a) P131,000 respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The following data are for Potras Company:

    Beginning Ending
    Finished goods inventory ............ P30,000 P40,000
    Work in process inventory ........... P20,000 P13,000
    Raw materials inventory ............. P21,000 P26,000
    Purchases of raw materials .......... P71,000
    Factory depreciation ................ P 5,000
    Other factory costs ................. P10,000
    Direct labor ........................ P27,000
    Indirect labor ...................... P 6,000
    Selling expense ..................... P12,000
    Over- or underapplied overhead ...... -0-

    The cost of raw materials used in production was:


    a. P26,000.
    b. P71,000.
    c. P76,000.
    d. P66,000.

    The cost of goods manufactured was:


    a. P114,000.
    b. P133,000.
    c. P121,000.
    d. P138,000.

    The cost of goods sold was:


    a. P131,000.
    b. P91,000.
    c. P81,000.
    d. P111,000.

    The Bus Company uses a job-order cost system. The following information was recorded
    for September:

    Added During September


    September 1 Direct Direct
    Job Number Inventory Materials Labor
    1 P1,000 P 300 P200
    2 1,400 250 300
    3 500 1,500 150
    4 750 4,000 400

    The direct labor wage rate is P10 per hour. Overhead is applied at the rate of P5 per
    direct labor-hour. Jobs 1, 2, and 3 have been completed and transferred to finished
    goods. Job 2 has been delivered to the customer.

    The ending Work in Process inventory is:


    a. P7,575.
    b. P5,350.
    c. P4,325.
    d. P5,150.

    The Cost of Goods Manufactured for September is:


    a. P10,750.
    b. P11,275.
    c. P5,925.
    d. P7,625.

    The Cost of Goods Sold for September (before disposition of any under-
    or overapplied overhead) is:
    a. P2,100.
    b. P5,925.
    c. P3,700.
    d. P1,950.

    Summit Company has provided the following inventory balances and manufacturing cost
    data for the month of January:

    Inventories: January 1 January 31


    Direct materials ....... P30,000 P40,000
    Work in process ........ P15,000 P20,000
    Finished goods ......... P65,000 P50,000

    Month of January
    Cost of goods manufactured ........ P515,000
    Manufacturing overhead applied .... P150,000
    Direct materials used ............. P190,000
    Actual manufacturing overhead ..... P144,000

    Under Summit's job-order costing system, any over or underapplied overhead is closed
    to the Cost of Goods Sold account at the end of the calendar year (i.e., December
    31).

    What was the total amount of direct material purchases during January?
    a. P180,000
    b. P190,000
    c. P195,000
    d. P200,000

    How much direct labor cost was incurred during January?


    a. P170,000
    b. P175,000
    c. P180,000
    d. P186,000

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