Name: ALINGASA, KYLA ALESSANDRA D.

Year/Section:3RD YR-BJAC01
THEORIES- Choose the best answer among the choices.
A. 1. Which document serves as a subsidiary ledger for the general ledger balance of Work
in Process Inventory?
a. Job cost sheets
b. Material requisitions
c. Labor time tickets
d. Material stockyards
A. 2. Unacceptable units of production that are subsequently repaired and sold as
acceptable finished goods.
a. Reworked units
b. Spoilage
c. Scrap
d. Defective units
B. 3. Spoilage that is an inherent result of the particular production process and arises
under efficient operating condition is referred to as:
a. Ordinary spoilage
b. Normal spoilage
c. Abnormal spoilage
d. There is no special term for this type
D. 4. A difference between job-costing and process costing is that:
a. Job costing systems usually do not distinguish between normal spoilage attributable to
all jobs and normal spoilage attributable to a specific job
b. Job costing system usually distinguishes between normal spoilage attributable to a
specific job and spoilage common to all jobs
c. Process costing normally does not distinguish between normal spoilage attributable to
a specific job, and spoilage common to all jobs
d. Both b and c
C. 5. The cost of rework units that are normal and due to the nature of particular jobs
should be charged to
a. Materials
b. Work in process
c. Factory overhead
 d. Loss account
B. 6. Which of the following conditions usually exists when comparing normal and abnormal
spoilage to controllability?
Normal spoilage Abnormal spoilage
a. Controllable Controllable
b. Uncontrollable Controllable
c. Controllable Uncontrollable
d. Uncontrollable Uncontrollable
C. 7. Cost of normal spoilage are usually counted as:
a. Part of costs of sales
b. A separate line item in the income statement
c. Part of cost of goods manufactured
d. An asset in the balance sheet
A. 8. Managers often cite reductions in the cost of spoilage as a (an)
a. Major justification for implementing a just in time production system
b. Measurement of improved output quality
c. Immaterial item that is not to be tracked
d. Indication of improvement in the accounting system
A. 9. When the number of units manufactured increases, the most significant change in
unit cost will be reflected as:
a. Decrease in the fixed element
b. Decrease in variable element
c. Increase in the fixed element
d. Decrease in the variable element
C. 10. In BAC Company, Job No. 26 is completed at a cost of P4,500 and immediately
delivered to the customer for P7,000 cash. A correct entry to record above is:
a. Debit cost of sales for P4,500 and credit work in process for P4,500
b. Debit cost of sales for P7,000 and credit finished goods for P7,000
c. Debit finished foods for P4,500 and credit work in process for P4,500
d. Debit accounts receivable for P7,000 and credit sales for P7,000
B. 11. The FIFO method of process costing will produce the same cost of goods transferred
out amount as the weighted average method when
 a. The goods produced are homogenous
b. There is no beginning WIP
c. There is no ending WIP
d. Beginning and ending WIP are each 50 percent complete
B. 12. An equivalent unit of material or conversion cost is equal to:
a. The prime cost
b. The amount of material or conversion cost necessary to complete one unit of
production
c. A unit of work in process inventory
d. The amount of material or conversion costs necessary to start a unit of production into
work in process
e. 50% of the material or conversion costs of a unit of finished goods inventory, assuming
a linear production pattern
C. 13. An item that does not appear on a cost of production report is:
a. Work in process beginning inventory
b. Cumulative costs through the end of departmental production
c. Finished goods ending inventory
d. Materials used in the department
e. Unit costs added by the department
E. 14. Assuming that there was no beginning work in process inventory and the ending work
in process inventory is 50% complete as to conversion costs, the number of equivalent units as
to conversion costs would be:
a. Less than the units completed
b. More than the units completed
c. The same as the units placed in process
d. The same as the units completed
e. Less than the units placed in process
E. 15. A characteristics of a process costing system is that:
a. Costs are accumulated by order
b. It is used by a company manufacturing customized items
c. Standard costs are not applicable
d. It requires a lot more detailed accounting that does a job order system
e. Work in process inventory is restated in terms of completed units

PROBLEMS- Read the question carefully and provide the correct answer. Show your solution.
YSL employs a job order costing system. Only three jobs #105, #106 and #107 were worked
during May and June 2020. Job #105 was completed in June 10; the other two jobs were still
in production in June 30. Job cost sheets on the three jobs follow:

#105 #106 #107

May costs:
Direct materials P16,500 P9,300 -
Direct labor 13,000 7,000 -
Overhead 20,800 11,200 -
June costs:
Direct materials - 8,200 21,300
Direct labor 4,000 6,000 10,000
Overhead ? ? ?

The following additional information is available:

• Manufacturing overhead is assigned to jobs on the basis of direct labor cost
• Indirect materials used during June totaled P4,000
• Indirect labor cost for June totaled P8,000
• Various manufacturing overhead incurred during June was P19,000
• Balances in the inventory accounts at May 31 were as follows:
Raw materials P40,000
Work in process ?
Finished goods P85,000
Required:
1. Compute for the total amount charged to Work in Process in the month of June

#105 #106 #107

Direct Labor 4,000 6,000 10,000
OH rate 1.6 1.6 1.6
Overhead 6400 9600 16000
Total OH 32000
 #106 #107
Direct Materials 17,500 21,300
Direct Labor 13,000 10,000
Overhead 20,800 16,000
Total Cost 51,300 47,300
WIP (june) 98,600

2. Compute for the cost of goods manufactured

Raw Materials, Beg. 40,000

Net Purchases 0
Raw mats. Available for sale 40,000
Raw materials, end (10,500)
Direct Materials 29,500
Direct Labor 20,000
OH 32,000
TMC 81,500
WIP, beg 77,800
COG placed to prod. 159,300
WIP,end (98,600)
COG manufactured 60,700

#105

Direct Materials 16,500

Direct Labor 17,000

Overhead 27,200

Total cost 60,700

Job 106 (DM), June 8,200

Job 107 (DM), June 21,300

Direct Materials 29,500

Job 105 (DL), June 4,000

Job 106 (DL), June 6,000

Job 107 (DL), June 10,000

Direct Labor 20,000

Indirect Mats 4,000

Indirect labor 8,000

Various OH incurred 19,000

OH actual 31,000

OH applied 32,000

Overapplied 1,000

The following information is available from the records of a manufacturer of salad dressing:
In process, percentage of completion
Aug. 1 (CC) 45%
Aug. 31 (CC) 60%
Gallons of dressing in IP, beg 36,000
Gallons completed 242,000
Gallons of dressing in IP, end 23,500
Costs, IP beg
Direct materials P183,510
Direct labor 98,526
Factory overhead 78,273
Costs added in August
Direct materials P1,136,025
Direct labor 451,450
Factory overhead 723,195
Additional information: 50% materials are added at the start of the process while 50% are
added at the end of the process
Required:
 1. The EUP for materials and conversion costs using FIFO method is

Direct Materials Direct Labor Factory

Overhead
WIP, beg 36,000 18,000 19,800 19,800
Gallons 206,000 206,000 206,000 206,000
completed
WIP, end 23,500 11,750 14,100 14,100
Total 265,500 235,750 239,900 239,900

Costs added 1,136,025 451,450 723,195

Total units 235,750 239,900 239,900
EUP 4.82 1.88 3.01
EUP 4.90

2. The EUP for materials and conversion costs using Weighted Average method is

Direct Materials Direct Labor Factory

Overhead
Gallons 242,000 242,000 242,000 242,000
completed
WIP, end 23,500 11,750 14,100 14,100
Total 265,500 253,750 256,100 256,100

Beg. Costs 183,510 98,526 78,273

Costs added 1,136,025 451,450 723,195
Total Cost 1,319,535 549,976 801,468
Total units 253,750 256,100 256,100
EUP 5.20 2.15 3.13
EUP 5.28

3. Using FIFO method, the total costs allocated to completed and transferred amounted
to

Gallons completed 206,000

Total EUP 9.72
Total Costs 2002320

4. Using WA method, the total costs allocated to finished and transferred amounted to

Gallons completed 242,000

Total EUP 10.48
Total Costs 2536160