OUR LADY OF FATIMA UNIVERSITY

QUEZON CITY CAMPUS

COLLEGE OF BUSINESS AND ACCOUNTANCY
ACCTG.122: COST ACCOUNTING and CONTROL
MIDTERM EXAMINATION
SECOND SEMESTER: A.Y.2017-2018
GENERAL INSTRUCTIONS:
1. Use no.2 pencil only.
2. Read each question carefully
3. CHOOSE THE CORRECT ANSWER
4. Write eligibly. (STRICTLY NO ERASURES)
5. Do not use your mobile while the exam is going on.
6. Sign the attendance sheet before you leave the examination room.

PART 1: Labor and overhead are added uniformly throughout

the process.
For No. 1 and 2: In process, Beginning is 6,000 units which is 1/8
Materials are added at the beginning of the process. In incomplete. Transferred out to next department is
process, end. is 42,400 units, which are 5/8 incomplete 18,000 units. 20% of the units started are still in process
as to conversion cost and in process, beg. is 29,250 at the end, which is 3/5 complete.
units which are 2/5 completed as to conversion cost.
The units started are 175% of the ending work in 5. What is the EUP for Materials using FIFO method?
process. a. 14,400 c. 13,800
b. 14,440 d. 15,000
1. What is the EUP for Materials using FIFO method?
a. 74,200 c. 65,250 6. What is the EUP for Conversion Cost using FIFO
b. 61,050 d. 59,400 method?
a. 19,050 c. 15,000
2. What is the EUP for Conversion Cost using FIFO b. 14,550 d. 13,950
method?
a. 70,000 c. 59,400
b. 61,050 d. 65,250 For No. 7 and 8:
20% of materials are added when the process is 10%
For No. 3 and 4: complete; 30% when the process is 30% complete; 40%
Half of materials are added at the start of the process upon 80% of the process; and balance at the end of the
and the balance at the end. In process, beg. is 10,150 process. Conversion costs are added proportionately
units which are 3/5 incomplete. Transferred out units is throughout the process.
15,750. Ten percent of units started were lost in process Quantity schedule:
while twenty percent represent work in process at the Beginning: 9,000 units, 1/2 complete
end, which is 20% incomplete as to conversion cost. Started: 12,000 units
Inspection point is upon 50% of the process. Transferred out: 6,000 units
3. What is the EUP for Materials using FIFO method? Ending WIP is 5/6 complete
a. 12,810 c. 11,725
b. 10,780 d. 11,875 7. Using FIFO method, what is the EUP for Materials?
4. What is the EUP for Conversion Cost using FIFO a. 4,200 c. 4,000
method? b. 5,700 d. 16,500
a. 13,160 c. 12,810
b. 10,780 d. 13,370 8. Using FIFO method, what is the EUP for Conversion
Cost?
For No. 5 and 6: a. 4,000 c. 14,000
Department A adds 50% of materials at the start of the b. 5,500 d. 15,500
process; 30% when the process is 1/2 complete; and
20% when the process is 3/4 complete.

ACCOUNTING 122-COST ACCOUNTING and CONTROL Page 1

For No. 9 and 10: 12. What is the EUP for Conversion Cost using FIFO
In process, beginning (5% incomplete) 5,000 units method?
Completed and transferred 22,000 units a. 55,314 c. 54,267
Lost units (Normal) 3,000 units b. 52,267 d. 54,600
Twenty percent of the units started represents ending
work in process, which is twenty percent complete. 13. How much is total cost of the units transferred out?
a. 409,220.70 c. 413,912.27
In this department, 10% of materials are added when b. 423,146.32 d. 425,155.33
the process is 20% complete; 40% when the process is
50% complete; and 50% when the process is 80% 14. How much is the total cost assigned to unfinished
complete. units?
Conversion costs are added uniformly throughout the a. 45,697.73 c. 50,389.30
process. b. 36,463.68 d. 34,454.67
Inspection point is upon 75% of the process.
For No. 15 to 20:
9. Using FIFO method, what is the EUP for Materials? PATINGIN-TINGIN sa KATABI Company manufactures a
a. 19,000 c. 20,500 product where all materials are added at the start of
b. 19,500 d.24,000 the process. Labor and Manufacturing expenses are
applied uniformly. The following data were gathered for
10. Using FIFO method, what is the EUP for Conversion the month of February 20xx:
Cost? Units:
a. 20,500 c. 19,500 In process, February 1: 2,000 (1/4 incomplete)
b. 19,000 d. 24,000 Started in process: 30,000
In process, February 28: 5,000 (3/5 incomplete)
Cost:
For No. 11 to 14: In Process, February 1: P500.00
The following data were gathered and obtained from the Added during the Month:
books and records of SUMPA Company for the month of Materials P22,500.00
March 20xx: Labor 5,700.00
In process, March 1,: Manufacturing Expenses 4,275.00
7,000 units (2/7 complete), cost: P6,650
8,000 units (2/3 complete), cost: P38,648 15. Using FIFO method, what is the EUP for Labor?
Started in process: 50,000 units a. 28,500 c. 27,500
In process, March 31,: b. 25,700 d. 25,800
6,000 units (3/5 complete)
4,000 units (1/4 incomplete) 16. Using FIFO method, what is the EUP for Conversion
Costs?
Materials added this month: P177,822 a. 27,500 c. 57,000
Labor employed this month: 117,660 b. 55,000 d. 25,700
Overhead incurred this month: 58,830
17. Using FIFO method, how much of the materials costs
In this company, materials of 40% are added when the were allocated to ending work in process?
process is one-third complete; 30% when the process is a. 3,886.52 c. 3,750
two-third complete; and the balance at 80% of the b. 3,866.52 d. 3,570
process. Conversion costs are added uniformly to
production. 18. Using FIFO method, how much conversion costs
were added to complete the beginning work in
11. What is the EUP for materials using FIFO method? process?
a. 55,314 c. 52,267 a. 181.36 c. 500
b. 54,267 d. 54,600 b. 525 d. none

ACCTG.122-COST ACCOUNTING and CONTROL Page 2

 units were 75% converted.
19. Using FIFO method, how much materials cost were The company NORMALLY experienced a 5% loss based
added to complete the beginning work in process? on the completed units. Cost data are as follows:
a. None c. 181.36 Beginning work-in process:
b. 500 d. 525 Materials: P324,000
Conversion: 549,000
20. What is the unit cost of units completed and Cost Added:
transferred out? Materials: P1,116,000
a. 1.06 c. 1.08 Conversion: 2,029,500
b. 1.07 d. 1.09 23. Using average method, what is the EUP for
materials?
For No. 21 to 22: a. 270,000 c. 300,000
HILONG-HILO Company uses the average method and b. 286,500 d. 268,500
adds materials at the start of the production in the
Forming department. Conversion costs are added 24. Using average method, what is the EUP for
proportionately throughout the process. Data related to Conversion Costs?
materials used in October 20xx are as follows: a. 286,500 c. 268,500
Quantity Schedule: b. 300,000 d. 270,000
Work in process, October 1: 2,150 (1/4 complete)
Started in October: 10,850 25. Using average method, what is the cost of units
Completed & transferred out: 10,000 transferred-out?
Abnormal lost units: 25 a. 3,720,266.24 c. 3,436,836.36
Work in process, October 31: 2,975 (2/5 complete) b. 3,735,234.64 d. 3,792,854.75
Cost Data:
Materials in Beginning WIP: P60,000 26. Using average method, what is the cost of units in
Cost of materials added: P304,000 the ending work-in process?
a. 373,763.64 c. 298,233.76
21. What is the EUP as to Materials? b. 225,645.25 d. 283,265.36
a. 13,000 c. 10,850
b. 10,083 d. 10,580 27. Using FIFO method, what is the EUP for materials?
a. 265,000 c. 260,000
22. If 20% of materials are added at the start of the b. 232,500 d. 250,500
process; and the balance at midpoint of the
process, what will be the EUP for materials if 28. Using FIFO method, what is the EUP for conversion
inspection point is at 40% of the process? cost?
a. 10,600 c. 10,605 a. 265,000 c. 250,500
b. 10,170 d. 10,663 b. 232,500 d. 260,000

For No. 23 to 30: 29. Using FIFO method, what is the cost of units
CHAROT Company employed process costing system. transferred-out?
The product passed 2 departments: Assembly and a. 3,637,454.39 c. 3,498,422.38
Finishing. Information pertaining to the assembly b. 3,512,184.12 d. 3,642,253.10
department was as follows:
Beginning Units 40,000 30. Using FIFO method, what is the cost of units in the
Lost Units (Total) 30,000 ending work-in process?
Started during production 260,000 a. 181,143.42 c. 333,441.83
Transferred to Finishing 240,000 b. 185,942.13 d. 195,103.47
Raw materials were added at the beginning of the
process. Work in process at the start of production was
90% complete and at the end of production was 20% to
complete.
Inspection took place in the assembly department when

ACCTG.122-COST ACCOUNTING and CONTROL Page 3

For Number 31 to 50: 39-42: What is the cost of goods manufactured?
NBA Inc. is engaged in the business of manufacturing a. 3,100,000
basket balls. The company employs ACTUAL costing b. 3,200,000
system. The company uses a single account for direct c. 3,300,000
and indirect materials. The company provided the d. 3,400,000
following data for the year ended December 31,
2018: 43-46: What is the cost of goods sold?
a. 3,100,000
b. 3,200,000
Net sales 9,000,000
c. 3,300,000
Net purchases 1,200,000
d. 3,400,000
Purchase returns 200,000
Total costs of factory labor 1,000,000
47-50: What is the cost of work in process on January
Depreciation of factory assets 300,000
1, 2018?
Utilities expense on factory 500,000 a. 200,000
Total administrative expenses 2,000,000 b. 300,000
Total marketing expenses 3,000,000 c. 400,000
Expired insurance on factory assets 100,000 d. 500,000

Inventories are
as follows:
Jan. 1 Dec. 31
Raw Mats. 100,000 300,000
WIP ? 200,000
FG 500,000 600,000

The following additional data are

provided:
1. The net profit of the company before
income tax for the year ended December
31, 2018 was 10% of net sales.
2. The direct labor cost for the year was four
times the cost of indirect labor.
3. The cost of indirect materials used was
P100,000.

31-34: What is the total prime cost?

a. 1,700,000
b. 2,000,000
c. 1,900,000
d. 2,100,000

35-38: What is the total conversion cost?

a. 1,700,000
b. 2,000,000
c. 1,900,000
d. 2,100,000

ACCTG.122-COST ACCOUNTING and CONTROL Page 4

PART 2:

The SUCCESSFUL Company operates two departments “Be a better version of yourself...”
described as follows:
Department A –in this department, 1/4 of materials are
added after one quarter of the process; and the balance
are added at the end of third quarter of the process.
Labor and overhead are added uniformly.

Department B – in this department, 50% of materials

are added at the start of the process; 30% are added
when the process is 1/2 complete; and the balance,
when process is 3/4 complete. Labor and Overhead are
added uniformly throughout the process.

Production Data for the month of August 20xx:

Units: Dep’t. A Dep’t B

In Process, Beginning 4,000 5,000
Started in Process ?
Units Received 15,000
Work in Process, ending 6,000 3,000

Costs: Dep’t. A Dep’t. B

Beginning P12,000 P20,000
Materials added P9,000 P7,960
Labor employed P4,000 P3,500
Manufacturing Overhead P2,000 P1,500

Beginning units in Department A is 20% complete while

the ending work-in process is 30% to complete.

Beginning units in Department B is 20% to complete

while the ending work-in process is 1/3 incomplete.

Required:
Using FIFO method, prepare a detailed Cost of
Production Reports for the two departments.

=============================================

Prepared By:
Jay Rodante A. Nano
Faculty-CBA

Check and Reviewed By:

Joannamarie Uy, CPA, MBA
Program Head-Accountancy

ACCTG.122-COST ACCOUNTING and CONTROL Page 5