COST ACCOUNTING Chap 1 Reviewer

CHAPTER 1

Multiple Choice Questions- Theoretical

1. a 6. b 11. d 16. a 21. b 26. c
2. c 7. c 12. a 17. b 22. c 27. a
3. a 8. d 13. b 18. d 23. c 28. c
4. c 9. a 14. d 19. b 24. d 29. c
5. d 10. b 15. a 20. a 25. c 30. d

Multiple Choice Questions - Computational

1. (b)

Direct Materials P47,000
Direct Labor 28,000
Factory Overhead: Depreciation – Factory equipment P1,000 Factory rent 2,000 Factory insurance 500 Materials handling 1,500 5,000
Manufacturing cost P80,000

2. (a)

Decrease in finished goods inventory P35,000
Add: Raw materials purchased P430,000 Direct labor payroll 200,000 Factory overhead 300,000 930,000
Total P965,000
Less: Increase in raw materials inventory 15,000
Cost of goods sold P950,000

3. (d)

Direct labor- Wages of machine operations P200,000
Direct materials: Metal wire P500,000 Plastic coating 380,000 P880,000

4. (c)

Materials inventory, beginning P 32,400
Purchases 40,000
Materials available for use 72,400
Materials inventory, ending 34,000
Materials used 38,400
Direct labor 33,000
Factory overhead 17,160
Manufacturing cost 88,560
Work in process inventory, beginning 7,200
Total 95,760
Work in process inventory, ending 16,240
Cost of goods manufactured P 79,520

5. (d)
Materials inventory, Jan. 1 P 17,000
Purchases 240,000
Freight in 3,000
Materials available for use 260,000
Materials inventory, Dec. 31 19,000
Materials used 241,000
Direct labor 320,000
Factory overhead 188,000
Factory cost 749,000 (1)
Work in process inventory, Jan. 1 12,000