Midterm Exam - Cost Accounting and Cost Control

 

1.ITEMS 1 and 2 ARE BASED ON THE FOLLOWING INFORMATION. IGNORE PESO SIGN FOR THE ANSWERS. Jang Company provided inventory balances and mfg. cost data for January. Under Jang's cost system, over or under applied overhead is closed to cost of goods sold at year-end. Jan 1 Jan 31 Direct materials 30,000 40,000 WIP 15,000 20,000 Finished goods 65,000 50,000 Month of January Factory overhead applied P150,000 Cost of goods manufactured 515,000 Direct materials used 190,000 Actual factory overhead 144,000 What would cost of goods sold be if under or over applied overhead were closed to cost of goods sold?Single line text. (5/5 Points) 524,000

2.What would cost of goods sold be if under or over applied overhead were allocated to inventories and cost of goods sold?Single line text. (5/5 Points) 524,700

3.Speed Company has underapplied overhead of P45,000 for the year. Before disposition of the under-applied overhead, selected year-end balances from Speed's accounting records were as follows: Sales-P1,200,000 Cost of goods sold-P720,000 Direct materials-P36,000 Work in process-P54,000 Finished goods-P90,000 Speed Company allocate over or underappied to appropriate inventories and cost of goods sold on year-end balances in its year-end income statement. Speed should report cost of goods sold of____.Single line text. (3/3 Points) 757,500

4.Aero Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Aero uses a predetermined overhead rate of P30 per machine-hour. In the Assembly dept. , it uses overhead rate of P12 per direct labor hour. During the current year Job # 32 incurred incu rred the following number of hours in each department: Fabrication Assembly Machine hours 40 12 Direct labor hours 3 25 What is the total amount of manufacturing overhead that Aero should have applied to Job 32 during the current year?Single line text. (5/5 Points) 1,500

5.Magallanes Company uses a predetermined overhead rate based on direct labor hours to apply mfg. overhead to jobs. The company estimated mfg. overhead would be P18,000 and direct labor hours would be 15,000. Actual figures were P19,500 and 16,000 for overhead and direct labor hours respectively. What is the over or underapplied overhead? Put Over or Under before your answer. Example: Over 1,000Single line text. (3/3 Points)

 

Under 300

6.At the beginning of the year, mfg. overhead was estimated to be P250,860. Actual direct labor hours were 20,800 for overhead of PP245,860. The company incurred an underapplied overhead of P10,820. If the predetermined overhead rate is based on direct labor hours, what was the estimated direct labor hours used?Single line text. (5/5 Points) 22,200 7.The entity uses direct labor hours for its predetermined overhead rate. The estimated direct labor hours were 19,700, actual direct labor hours was 17,700 equivalent to actual overhead of P392,940. This occurrence caused an underapplied overhead of P35,400. What was the total estimated manufacturing overhead at the beginning of the year?Single line text. (0/5 Points) Correct answers:

397,940

8.The entity has provided the following data for the month of November. The balance in the Finished goods inventory beginning was P52,000 and ending was P30,000. Cost of goods manufactured for the month was P212,000, Actual mfg. overhead cost incurred was P55,000and the mfg. overhead applied to WIP was P58,000. What is the amount of Cost of goods sold that should appear in the income statement for November?Single line text. (0/3 Points) Correct answers:

231,000

9.USE THE FOLLOWING DATA TO ANSWER QUESTIONS 9 TO 12: Hecky Company had only one job in process on May 1. The job had been charged of P18,702 of direct materials, direct labor and mfg. overhead. The company assigns overhead cost to jobs using the predetermined overhead rate of P18.40 direct labor hour. During May, the following activities were recorded: Direct materials beginning-P8,500 PurchasesP38,000 Used-P39,300 Direct labor hours worked during May-1,900 hrs. Direct labor cost incurred-P24,510 Actual mfg. overhead costs-P33,300 Work in process endingP16,937 The balance of the raw materials inventory account on May 30 was?Single line text. (0/1 Point) Correct answers:

7,200

10.The cost of goods manufactured was?Single line text. (0/5 Points) Correct answers:

100,535

 

11.There was an under/overapplied overhead of how much? Use Over or Under before the amount. Example: Under 200Single line text. (0/2 Points) Correct answers:

Over 1,660

12.What is the account that will be debited to close the under/over applied overhead? Do not give an abbreviated account.Single line text. (0/3 Points) Correct answers:

Manufacturing overhead,Manufacturing overhead,Manufacturing overhead control

13.Accue Inc. uses a predetermined factory overhead rate based on direct labor hours. hou rs. For October, Accue's budgeted overhead was P300,000 based on budgeted volume of 100,000 direct labor hours. Actual overhead amounted to P325,000 with actual direct labor hours of 110,000. How much was under or over applied overhead? Use Over or Under before the amount.Single line text. (3/3 Points) Over 5,000

14.Which of the following statement is incorrect?Single choice. (1/1 Point) Production overhead include factory depreciation and supplies Production overhead include costs of factory employees' cafeteria departments Production overhead costs include production line labor Production overhead include the maintenance department for factory Correct answers: Production overhead costs include production line labor

15.What account is to be credited to accrue indirect labor used in production?Single line text. (1/1 Point) ages Payable

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