Reviewer in CVP Analysis

 

 

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:

For No. 1 and 2: Materials are added at the beginning of the process. In process, end. is 42,400 units, which are 5/8 incomplete as to conversion cost and in process, beg. is 29,250 units which are 2/5 completed as to conversion cost. The units started are 175% of the ending work in process.

1.  What is the EUP for Materials using FIFO method? c. 65,250 a.  74,200  74,200  b.  61,050 d. 59,400 2.  What is the EUP for Conversion Cost using FIFO method? a.  70,000 c. 59,400 b.  61,050 d. 65,250  d. 65,250  For No. 3 and 4: Half of materials are added at the start of the process and the balance at the end. In process, beg. is 10,150 units which are 3/5 incomplete. Transferred out o ut units is

15,750. Ten percent of units started were lost in process while twenty percent represent work in process at the end, which is 20% incomplete as to conversion cost. Inspection point is upon 50% of the process. 3.  What is the EUP for Materials using FIFO method? a.  12,810 c. 11,725 11,875   b.  10,780 d. 11,875 d. 4.  What is the EUP for Conversion Cost using FIFO method? a.  13,160 c. 12,810 b.  10,780 d. 13,370  d. 13,370  For No. 5 and 6:

Department A adds 50% of materials at the start of the process; 30% when the process is 1/2 complete; and 20% when the process is 3/4 complete.

 ACCOUNTING 122-COST 122-COST ACCOUNTING a and nd CONTROL

Labor and overhead are added uniformly throughout the process. In process, Beginning is 6,000 units which is 1/8 incomplete. Transferred out to next department is 18,000 units. 20% of the units started are still in process at the end, which is 3/5 complete. 5.  What is the EUP for Materials using FIFO method? c. 13,800 a.  14,400 b.  14,440 d. 15,000 6.  What is the EUP for Conversion C onversion Cost using FIFO method? a.  19,050 c. 15,000 14,550   d. 13,950 b.  14,550

For No. 7 and 8: 20% of materials are added when the process is 10% complete; 30% when the process is 30% complete; 40% upon 80% of the process; and balance at the end of the process. Conversion costs are added proportionately throughout the process.

Quantity schedule: Beginning: 9,000 units, 1/2 complete Started: 12,000 units Transferred out: 6,000 units Ending WIP is 5/6 complete 7.  Using FIFO method, what is the EUP for Materials? a.  4,200 c. 4,000 5,700   d. 16,500 b.  5,700 8.  Using FIFO method, what is the EUP for Conversion Cost? a.  4,000 c. 14,000 b.  5,500  5,500 

d. 15,500

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For No. 9 and 10: In process, beginning (5% incomplete) 5,000 units Completed and transferred 22,000 units Lost units (Normal) 3,000 units Twenty percent of the units started represents ending work in process, which is twenty percent complete.

In this department, 10% of materials are added when the process is 20% complete; 40% when the process is 50% complete; and 50% when the process is 80% complete. Conversion costs are added uniformly throughout the process. Inspection point is upon 75% of the process. 9.  Using FIFO method, what is the EUP for Materials? a.  19,000 19,000   c. 20,500 b.  19,500 d.24,000 10.  Using FIFO method, what is the EUP for Conversion Cost? 20,500   c. 19,500 a.  20,500 b.  19,000

d. 24,000

For No. 11 to 14: The following data were gathered and obtained from the books and records of SUMPA Company for the t he month of March 20xx: In process, March 1,: 7,000 units (2/7 complete), cost: P6,650 8,000 units (2/3 complete), cost: P38,648 Started in process: 50,000 units In process, March 31,: 6,000 units (3/5 complete)

4,000 units (1/4 incomplete) Materials added this month: Labor employed this month: Overhead incurred this month:

P177,822 117,660 58,830

In this company, materials of 40% are added when the process is one-third complete; 30% when the process is two-third complete; and the balance at 80% of the process. Conversion costs are added uniformly to production. 11.  What is the EUP for materials using FIFO method? a.  55,314 b.  54,267

c. 52,267 54,600   d. 54,600

 ACCTG.122-COST ACCOUNTING ACCOUNTING and CONTROL

12.  What is the EUP for Conversion C onversion Cost using FIFO method? a.  55,314 c. 54,267 54,267   b.  52,267 d. 54,600 13.  How much is total cost of the units transferred out? a.  409,220.70 c. 413,912.27 413,912.27   b.  423,146.32 d. 425,155.33 14.  How much is the total cost assigned to unfinished units? a.  45, 45,697.73 697.73   c. 50,389.30 b.  36,463.68 d. 34,454.67 For No. 15 to 20: PATINGIN-TINGIN sa KATABI Company manufactures a product where all materials are added at the start of the process. Labor and Manufacturing expenses are applied uniformly. The following data were gathered for the month of February 20xx: Units: In process, February 1: 2,000 (1/4 incomplete)

Started in process: 30,000 In process, February 28: 5,000 (3/5 incomplete) Cost: In Process, February 1: P500.00 Added during the Month: Materials P22,500.00 Labor 5,700.00 Manufacturing Expenses 4,275.00 15.  Using FIFO method, what is the EUP for Labor? a.  28,500 c. 27,500 27,500   b.  25,700 d. 25,800 16.  Using FIFO method, what is the EUP for Conversion Costs? a.  27,500  27,500  c. 57,000 b.  55,000 d. 25,700 17.  Using FIFO method, how much of the t he materials costs were allocated to ending work in process? a.  3,886.52 c. 3,750 3,750   b.  3,866.52 d. 3,570 18.  Using FIFO method, how much conversion costs were added to complete the beginning work in process? 181.36 6 a.  181.3 b.  525

c. 500 d. none

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19.  Using FIFO method, how much materials cost were added to complete the beginning work in process? a.  None None   c. 181.36 b.  500 d. 525 20.  What is the unit cost of units completed and transferred out? 1.06   c. 1.08 a.  1.06 b.  1.07 d. 1.09 For No. 21 to 22: HILONG-HILO Company uses the average method and adds materials at the start of the t he production in the Forming department. Conversion costs are added proportionately throughout the process. Data related to materials used in October 20xx are as follows: Quantity Schedule: Work in process, October 1: 2,150 (1/4 complete) Started in October: 10,850 Completed & transferred out: 10,000 Abnormal lost units: 25 Work in process, October 31: 2,975 (2/5 complete)

Cost Data: Materials in Beginning WIP: P60,000 Cost of materials added: P304,000 21.  What is the EUP as to Materials? c. 10,850 a.  13,000 13,000   b.  10,083 d. 10,580 22.  If 20% of materials are added at the start of the process; and the balance at midpoint of the process, what will be the EUP for materials if inspection point is at 40% of the process? c. 10,605 a.  10,600 10,600   b.  10,170

d. 10,663

For No. 23 to 30: CHAROT Company employed process costing system. The product passed 2 departments: Assembly and Finishing. Information pertaining to the assembly department was as follows: Beginning Units 40,000 Lost Units (Total) 30,000 Started during production 260,000 Transferred to Finishing 240,000 Raw materials were added at the t he beginning of the process. Work in process at the start of production was

units were 75% converted. The company NORMALLY experienced a 5% loss based on the completed units. Cost data are as follows: Beginning work-in process: Materials: P324,000 Conversion: 549,000 Cost Added: Materials: P1,116,000 Conversion: 2,029,500 23.  Using average method, what is the EUP for materials? a.  270,000 c. 300,000  300,000  b.  286,500 d. 268,500 24.  Using average method, what is the EUP for Conversion Costs? a.  286,500 286,500   c. 268,500 b.  300,000 d. 270,000 25.  Using average method, what is the cost of units transferred-out? a.  3,720,266.24 c. 3,436,836.36 3,436,836.36   b.  3,735,234.64 d. 3,792,854.75 26.  Using average method, what is the cost of units in the ending work-in process? c. 298,233.76 a.  373,763.64  373,763.64  b.  225,645.25 d. 283,265.36 27.  Using FIFO method, what is the EUP for materials? a.  265,000 c. 260,000  260,000  b.  232,500 d. 250,500 28.  Using FIFO method, what is the EUP for conversion cost? 250,500   a.  265,000 c. 250,500 c. b.  232,500

d. 260,000

29.  Using FIFO method, what is the cost of units transferred-out? a.  3,637,454.39 c. 3,498,422.38 3,498,422.38   b.  3,512,184.12 d. 3,642,253.10 30.  Using FIFO method, what is the cost of units in the ending work-in process? 333,441.83   a.  181,143.42 c. 333,441.83 c. b.  185,942.13 d. 195,103.47

90% complete and at the end of production was 20% to complete. Inspection took place in the assembly department when

 ACCTG.122-COST ACCOUNTING ACCOUNTING and CONTROL

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For Number 31 to 50: NBA Inc. is engaged in the business of manufacturing m anufacturing

39-42: What is the cost of goods manufactured? 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: Net sales

9,000,000

Net purchases

1,200,000

Purchase returns

200,000

Total costs of factory labor

1,000,000

Depreciation of factory assets

300,000

Utilities expense on factory

500,000

43-46: What is the cost of goods sold? a.  3,100,000 b.  3,200,000 c.  3,300,000 d.  3,400,000 47-50: What is the cost of work in process on January 1, 2018? a.  200,000 b.  300,000

Total administrative expenses

2,000,000

Total marketing expenses

3,000,000

c.  400,000

100,000

d.  500,000

Expired insurance on factory assets Inventories are as follows:

Raw Mats.

Jan. 1 100,000

Dec. 31 300,000

WIP

?

200,000

FG

500,000

600,000

The following additional data are  provided:

1.  The net profit of the company c ompany 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 c onversion cost? a.  1,700,000 b.  2,000,000 c.  1,900,000 d.  2,100,000

 ACCTG.122-COST ACCOUNTING ACCOUNTING and CONTROL

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PART 2:

The SUCCESSFUL Company operates two departments 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.

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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: In Process, Beginning Started in Process Units Received Work in Process, ending

Dep’t. A  4,000 ?

Dep’t B  5,000

6,000

15,000 3,000

Costs: Beginning Materials added Labor employed Manufacturing Overhead

Dep’t. A  P12,000 P9,000 P4,000 P2,000

Dep’t. B  P20,000 P7,960 P3,500 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 ACCOUNTING and CONTROL

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