020142017_QUIZ1_ADVCOST

FEU DILIMAN BSA 21 ADVANCED ADVANCED COST ACCOUNTING

Name: ________________________________________

Date: ____________________ 

QUIZ 1

1. In process process cost cost system, system, costs costs are assigne assigned d only: only: a. To one work in in process process inventory inventory account account b. To work in process process and and fnised fnised goods goods inventories inventories c. To work in process process,, fnised goods goods,, and cost cost o! goods goods sold d. To work work in process process inventory inventory accounts accounts ". Indicate Indicate wic wic o! te !ollow !ollowing ing statement statements s is not correc correct. t. a. #ot #ot a $ob $ob orde orderr and and a proces ocess s cost cost syst system em tra track te te same same tr tree manu! manu!ac actu turi ring ng cost cost elem element ents s % dire direct ct mate materi rial als, s, dire direct ct labo labor, r, and and manu!acturing overead. b. In a $ob $ob orde orderr cost cost system system,, only only one work in proc proces ess s is used, used, wil wile e in proc process ess cost cost system system,, multip multiple le work work in proce process ss invento inventory ry account accounts s are are used. c. &anu!acturi &anu!acturing ng costs are are accumulated accumulated te te same way in in a $ob order order and in a process cost system. d. &anu!a &anu!actu cturing ring costs costs are are assigned assigned te same same way in a $ob order order and in a process cost system. '. In making making te $ournal $ournal entry entry to recor record d raw materia materials ls costs: costs: a. Te debit debit is to (inised inised )oods )oods Invento Inventory ry b. Te debit debit is o!ten o!ten to two two or more work work in process process invento inventory ry accounts accounts c. Te credit credit is genera generally lly to two two or more more work in process process accounts accounts d. Te credi creditt is to to (inis (inised ed )oods )oods Inventory Inventory *. + cost cost o! pro produc ductio tion n repor report: t: a. Is an an ete etern rnal al rep repor ortt b. -ows -ows costs carge carged d to department department and and costs accounte accounted d !or c. -ows -ows euivalent euivalent units units o! producti production on but not pysica pysicall /ow o! units units d. 0o 0ont ntai ains ns si si secti section ons s . Te restateme restatement nt o! incomplet incomplete e units in terms o! complet completed ed units is called: called: a. 2uan 2uanti titi ties es prod produc uced ed b. Total otal pro produc ductio tion n c. 3ui 3uiva vale lent nt prod produc ucti tion on d. +ppro +pproim imate ate produ producti ction on 4. +n a. b. c.

euivalen euivalentt unit o! o! material material or convers conversion ion cost cost is eual eual to: Te manu!actur manu!acturing ing costs costs necessary necessary to complete complete one unit unit o! produc production tion a unit o! o! work work in proce process ss invent inventory ory te manu!actu manu!acturing ring costs costs necessary necessary to start start a unit o! produc production tion in to work work in process d. f!ty percen percentt o! manu!acturin manu!acturing g costs o! a unit o! fnised fnised goods goods inventory inventory

5. +n item tat tat does not appear appear on on a cost o! product production ion report report is: a. beginn beginning ing work work in proc process ess invent inventory ory b. cumulative cumulative costs costs troug troug te end o! o! departmenta departmentall productio production n c. ending ending work work in pro proces cess s invent inventory ory d. ending ending fnis fnised ed good goods s invent inventory ory 6. Department Department 1 ad ad put 7,888 7,888 units into into process process during during te period period and and ad ending units in process o! "1,888 units.

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9at is te number o! units trans!erred to fnised goods inventory, i! Department "s ending units in process are 1",888; a. 18*,888 b. 6',888 c. 5*,888 d. 4",888 7. sing te data in Number 18, wat is te cost per euivalent unit !or materials; a. =4.88 b. =.67 c. =4.8 d. 4.'4 Items 1" to 1* are based on te !ollowing data !or te (inising Department o! te ?ovely 0ompany in @anuary: #eginning Inventory

A8A

>nits trans!erred in during te mont

*,588

>nits trans!erred to (inised )oods during te mont

*,'88

3nding work in process B"C complete as to labor ?abor costs incurred !or mont

*88 =1*,868

1".9at is te euivalent production !or labor during te mont; a. *,*88 b. *,488 c. *,588 d. *,'88 1'.9at is te labor cost per euivalent unit; a. ='."8 b. ='.84 c. ='.88 d. ='."5 1*.9at is te labor cost in te ending work in process; "

a. b. c. d.

= '"8 = '84 =1,"68 = 748

Items 1 to 16 are based on te !ollowing data !or te )rinding Department o! te 9est 0ompany in November: #eginning inventory

A8A

>nits placed in production during te mont

5',888

>nits trans!erred to net department during te mont

45,888

3nding work in process B1E' complete as to overead

;

Fveread costs incurred !or mont

="6",788

1.9at is te number o! units in te ending work in process; a. 4,888 b. *,888 c. ,888 d. 5,888 14.9at is te euivalent production !or overead during te mont; a. 47,888 b. 5',888 c. 51,888 d. 45,888 15.9at is te overead cost in te units trans!erred out; a. ="*5,888 b. ="5*,588 c. ="*5,588 d. ="8,688 16.9at is te overead cost in te ending inventory o! work in process; a. = 6,"88 b. ="*,488 c. = 5,5"8 d. = 5,748 >se te !ollowing data in answering items 17 to "": During te mont, ',788 units o! product were started into production in a department, o! wic ',588 were completed. F! te ',588 completed units, 68 are still on and in te department and ave not been pysically trans!erred to te net department. Tere are also units still in processG tey are estimated to be 4 percent complete as to labor and overead. ?abor !or te mont was ="5,17'. 17.9at is te labor cost applicable to te units trans!erred to te net department; a. =",58" b. ="5,17' c. ="5,8" d. ="8,58 "8.9at is te labor cost applicable to te units completed and still on and; a. = 46 b. =1,*"8 c. =1,"*8 d. =,468

'

"1.9at is te number o! uncompleted units on and; a. "88 b. '88 c. *88 d. 88 "".9at is te labor cost applicable to te uncompleted units on and; a. = 7"' b. =7,"'8 c. =1,*"8 d. = 1*" 2uestions "' and "* relate to -pring 0ompany wic bottles mineral water. Te water is fltered in Department 1 and ten /ows troug to Department " were it is bottled. Te companys only direct material cost occurs in te bottling stage. Te uantity scedules o! -pring 0ompany are as !ollows: Department 1 >nits started in process

118,888

>nits trans!erred to Department "

68,888

>nits in process, end

'8,888

Department " >nits received !rom Department 1

68,888

>nits trans!erred to fnised goods inventory >nits in process, end

41,*88 16,488

"'.Direct materials euivalent units o! production !or Department 1 are: a. 8 b. 68,888 units c. 181,888 units d. 118,888 units "*.Department " would ave ow many euivalent units o! production, on te basis o! a conversion cost computation; a. 41,*88 units b. 46,7"7 units c. 5*,57" units d. 68,888 units ".#elow is te uantity scedule !or Department " o! Tuason 0ompany: >nits to be accounted !or: >nits received !rom Department 1 '5,888 >nits accounted !or: >nits trans!erred to fnised goods "6,888 >nits in process, end B'C complete as to conversion cost 7,888 0ost data: 0ost !rom preceding department 0onversion costs added tis period

="*,88 16,478

9at is te cost o! units in process, end; a. =,68 b. =5,5*8 c. =1,678 d. =4,*8 *

"4.Te production data !or Department " are as !ollows: >nits received !rom preceding department >nits added to production >nits fnised and trans!erred out 3nding units in process Bdirect materials, 188C, conversion costs, 58C complete 0osts !rom preceding department

,888 ,888 *6,888 1",888 ="*,58

0osts added by department: &aterials

= 5,"88

0onversions costs

=',68

"5.Te <0 0orporation manu!actures toy cars. In Department 1, te body o! te toy car is !ormed out o! plastic. In Department ", !our rubber weels are placed on eac car at te end o! te process. #ecause low is te activity o! Department " !or &ay: >nits trans!erred in 0ost trans!erred in 0osts incurred by Department ": Direct materials 0onversion costs >nits in process, end

1,888 =1',88 = 8.8" eac rubber weel =1*,"18 ',888 B"E' complete as to conversion costs, no direct materials

9at is te total costs o! completed units trans!erred out to Department "; a. b. c. d.

="1,7' ="',7*8 ="1,71 ="',""8

"6.#elow are data pertaining to Department " o! &agdalo 0ompany tat uses a process cost system: >nits received !rom Department 1 88,888 >nits added to production 188,888 >nits trans!erred to fnised goods '8,888 3nding units in process 18C are '8C complete *8C are 48C complete 1C are 5C complete 'C are 6C complete 0osts trans!erred in ='88,888 0ost added by department: Direct materials =7,'8 0onversion costs =484,*68 Direct materials are added at te 4"C stage o! production and conversion costs are added evenly trougout te process. No beginning work in process inventory eists. 9at is te cost o! ending work in process inventory; a. b. c. d.

=117,4'8 = 6*,4'8 =171,4'8 =1"4,4'8



"7.=roduction data taken !rom te 0osts to be +ccounted (or section o! te 0ost -cedule o! Fakwood 0ompany wit two production departments is as !ollows: Department 1 >nit cost: Direct materials Direct labor Fveread

Department "

=*."7 ".7' 1.15

3uivalent production: Direct labor Fveread

=

A '.17 1."8

"8,888 "8,888

I! department 1 trans!erred '",888 units to Department ", wat is te total cost to be accounted !or Department "; a. b. c. d.

='4,"68 =",488 =*17,514 = 65,688

'8.Department ' o! te =eninsula 0ompany as te !ollowing pieces o! data included in its cost o! production report: Quantities:

>nits trans!erred in !rom Department " 56,'88 >nits in process, end

; Total Cost 

Unit Cost 

Cost to be accounted for:

0ost !rom preceding department 0osts added by department: Direct materials 0onversion costs

0ost accounted !or:  Trans!erred to fnised goods

='71,8 8

;

= 68,888 =18,88 8

=1."' =".8

=86,7 7

+dditional data: 3nding units in process in Department ' are 188C complete as to direct materials and *C complete as to conversion costs. 9at is te amount o! total costs accounted !or; a. =4,'"1 b. =44,87 c. =44,'"1 d. =581,'"1 '1.>nit tat do not meet production standards and usually discarded are: a. De!ective units b. -poiled units c. -crap units d. +dded units

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'".-poilage tat is an inerent result o! a particular production and arises even under eHcient operating condition is: a. Normal spoilage b. +bnormal spoilage c. De!ective units d. -crap units ''.9at is te euivalent unit o! production o! lost units wica re n ormally discovered at te end o! te process; a. None b. 188C c. 8C d. 68C '*.9en spoiled units are discovered at te end o! te process in te subseuent department, to compute te cost o! spoiled units, te number o!  spoiled units multiplied by: a. Te unit costs !rom prior department only b. Te total unit costs !rom prior department and subseuent departments c. Te unit cost in te subseuent department d. Te unit cost !or materials in subseuent department '.9en materials are added in te subseuent department and te volume o!  units increased, te trans!erred in unit costs are: a. Increased b. >ncanged c. Decreased d. Not applicable '4.@et 0ompany manu!actures a product tat passes in !our departments in a continuous process. Department ' ad no beginning work in process inventory and trans!erred in 16,888 units !rom Department ", eac wit an euivalent unit cost o! 1".8. witin Department ', unit costs !or direct materials, direct labor and manu!acturing overead Bapplied were =6.88, =7.5, and =*.88, respectively. Direct materials in Department ' are added at te beginning o! te process. Department ' ad *,688 units in te ending work in process inventory wic are 4C complete as to conversion costs. I! 4"8 units were lost in te Department ' at @ets inspection point were conversion costs were *C complete, wat was te total costs o! lost units; a. =11,'"."" b. =1',616." c. =14,*4." d. = 6,574." '5.>sing te data in Number '4, i! at @ets Department ' inspection point, wic is at al!way troug Department 's conversion process, 1,"88 spoiled units were removed !rom production. Normal lost units was 688 units. I! total costs o! lost units was ='",68, ow muc o! te amount sould be allocated to ending work in process inventory; a. =,6*8.88 b. =5,'"8.88 c. =4,"5.1* d. A8A '6.
process at @uly '1 wic was 188C complete as to material costs and 8C complete as to conversion costs. &aterial costs o! ='8,888 and conversion costs o! =*,888 were carged to Department 1 in @uly. 9at were te total costs trans!erred out to Department "; a. b. c. d.

=*4,788 =',488 =4,888 5,1"8

'7.iagra 0emicals as a &iing Department and a
8

>nits started 0ompleted and trans!erred out Costs: 0emical =

8,888 ',888 ="8,888 58,888 1',888

0emical 2 0onversion costs

0emical = is introduced at te start o! operations in te &iing Department, and 0emical 2 is added wen te product is tree !ourts completed in te &iing Department. 0onversion costs are added evenly during te process.  Te ending work in process in te &iing Department is twoAtirds complete. 9at is te cost o! goods completed and trans!erred to te refning Department during @uly; a. ='8,888 b. =*88,888 c. ='88,888 d. =*8,888 *8.>sing te data in Number '7, wat is te cost o! work in process as o! @uly '1, "81*; a. =18,888 b. =1"8,888 c. =11,888 d. =18,888

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