Professional Documents
Culture Documents
BSA 21
ADVANCED COST ACCOUNTING
QUIZ 1
1
What is the number of units transferred to finished goods inventory, if
Department 2s ending units in process are 12,000?
a. 104,000
b. 83,000
c. 74,000
d. 62,000
9. Red Company has 6,000 units in process at the beginning of the month in
Department 1. During the month, an additional 14,000 units were placed into
process.
If Red Company had 4,200 units in process at the end of the month, what is
the number of units transferred to Department 2, assuming all units
completed in Department 1 are transferred to Department 2?
a. 15,800
b. 18,200
c. 20,000
d. 24,200
10.The cost of materials put into production in a department during the month
totalled P188,400. By the end of the month, these materials had been used
for P32,000 units, of which 29,000 were completed and transferred out and
3,000 were in process. Eighty percent of materials were added to the units in
process.
11.Using the data in Number 10, what is the cost per equivalent unit for
materials?
a. P6.00
b. P5.89
c. P6.50
d. 6.36
Items 12 to 14 are based on the following data for the Finishing Department of the
Lovely Company in January:
Beginning Inventory -0-
Units transferred in during the month 4,700
Units transferred to Finished Goods during the month 4,300
Ending work in process (25% complete as to labor) 400
Labor costs incurred for month P14,080
12.What is the equivalent production for labor during the month?
a. 4,400
b. 4,600
c. 4,700
d. 4,300
13.What is the labor cost per equivalent unit?
a. P3.20
b. P3.06
c. P3.00
d. P3.27
2
a. P 320
b. P 306
c. P1,280
d. P 960
Items 15 to 18 are based on the following data for the Grinding Department of the
West Company in November:
Beginning inventory -0-
Units placed in production during the month 73,000
Units transferred to next department during the month 67,000
Ending work in process (1/3 complete as to overhead) ?
Overhead costs incurred for month P282,900
15.What is the number of units in the ending work in process?
a. 6,000
b. 4,000
c. 5,000
d. 7,000
3
21.What is the number of uncompleted units on hand?
a. 200
b. 300
c. 400
d. 500
Questions 23 and 24 relate to Spring Company which bottles mineral water. The
water is filtered in Department 1 and then flows through to Department 2 where it is
bottled. The companys only direct material cost occurs in the bottling stage. The
quantity schedules of Spring Company are as follows:
Department 1
Units started in process 110,000
Units transferred to Department 2 80,000
Units in process, end 30,000
Department 2
Units received from Department 1 80,000
Units transferred to finished goods inventory 61,400
Units in process, end 18,600
23.Direct materials equivalent units of production for Department 1 are:
a. 0
b. 80,000 units
c. 101,000 units
d. 110,000 units
Cost data:
Cost from preceding department P24,050
Conversion costs added this period 18,690
4
26.The production data for Department 2 are as follows:
Units received from preceding department 55,000
Units added to production 5,000
Units finished and transferred out 48,000
Ending units in process (direct materials, 100%,
conversion costs, 70% complete) 12,000
Costs from preceding department P24,750
Costs added by department:
Materials P 7,200
Conversions costs P53,580
27.The RC Corporation manufactures toy cars. In Department 1, the body of the
toy car is formed out of plastic. In Department 2, four rubber wheels are
placed on each car at the end of the process. Because low is the activity of
Department 2 for May:
Direct materials are added at the 62% stage of production and conversion
costs are added evenly throughout the process. No beginning work in process
inventory exists.
a. P119,630
b. P 84,630
c. P191,630
d. P126,630
5
29.Production data taken from the Costs to be Accounted For section of the Cost
Schedule of Oakwood Company with two production departments is as
follows:
Department Department
1 2
Unit cost:
Direct materials P4.29 P -
Direct labor 2.93 3.19
Overhead 1.17 1.20
Equivalent production:
Direct labor 20,000
Overhead 20,000
Additional data:
Ending units in process in Department 3 are 100% complete as to direct
materials and 45% complete as to conversion costs.
31.Unit that do not meet production standards and usually discarded are:
a. Defective units
b. Spoiled units
c. Scrap units
d. Added units
6
32.Spoilage that is an inherent result of a particular production and arises even
under efficient operating condition is:
a. Normal spoilage
b. Abnormal spoilage
c. Defective units
d. Scrap units
34.When spoiled units are discovered at the end of the process in the
subsequent department, to compute the cost of spoiled units, the number of
spoiled units multiplied by:
a. The unit costs from prior department only
b. The total unit costs from prior department and subsequent
departments
c. The unit cost in the subsequent department
d. The unit cost for materials in subsequent department
35.When materials are added in the subsequent department and the volume of
units increased, the transferred in unit costs are:
a. Increased
b. Unchanged
c. Decreased
d. Not applicable
If 620 units were lost in the Department 3 at Jets inspection point where
conversion costs were 45% complete, what was the total costs of lost units?
a. P11,325.22
b. P13,818.25
c. P16,546.25
d. P 8,796.25
37.Using the data in Number 36, if at Jets Department 3 inspection point, which
is at halfway through Department 3s conversion process, 1,200 spoiled units
were removed from production. Normal lost units was 800 units. If total costs
of lost units was P32,850, how much of the amount should be allocated to
ending work in process inventory?
a. P5,840.00
b. P7,320.00
c. P6,257.14
d. -0-
38.Rose Company instituted a new process in July. During the month, 10,000
units were started in Department 1. Of the units started, 1,000 were spoiled
at the end of the process, considered normal in the operation of the company.
7,000 units were transferred to Department 2 and 2,000 remained in work in
7
process at July 31 which was 100% complete as to material costs and 50%
complete as to conversion costs. Material costs of P30,000 and conversion
costs of P45,000 were charged to Department 1 in July.
What were the total costs transferred out to Department 2?
a. P46,900
b. P53,600
c. P56,000
d. 57,120
40.Using the data in Number 39, what is the cost of work in process as of July 31,
2014?
a. P105,000
b. P120,000
c. P115,000
d. P150,000