Coquilles Company accumulates costs using the job order costing system.

The following data were

provided to you for 2017:
December 31, 2016 December 31, 2017
Inventories:
Raw Materials Inventory P156,000 P175,500
Work in Process Inventory 193,600 228,800
Finished Goods Inventory 253,500 275,600
Operating Data:
Cost of Goods Manufactured P1,972,100
Direct Labor Cost 650,000
Factory overhead cost, excluding indirect 812,500
materials
Indirect materials used 65,000

The raw materials inventory account included both direct and indirect materials.

1. How much is the materials purchases (direct and indirect) for 2017?
a. P499,300
b. P564,300
c. P586,400
d. P521,400

Camembert Company uses the job-order costing system and applies overhead on the basis of machine
hours. The budgeted manufacturing overhead costs is P1,680,000 based on a budgeted activity level of
112,000 machine hours for the year 2017. Summarized data for jobs 113, 115, 116, 117 and 118 are
presented below:
Work in Process December 2017
Job As of Direct materials Direct Machine hours
No. 11/30/2017 labor
113 P121,800 2,100 6,300 420
115 77,000 5,600 16,000 1,400
116 35,840 37,380 1,960
117 53,060 28,000 3,500
118 36,400 23,520 1,120

The actual manufacturing overhead costs incurred by the entity for 2017 were as follows:
January to December
November
Indirect material P 175,000 P 12,600
Indirect labor 483,000 42,000
Other manufacturing overhead 343,000 30,800
paid
Depreciation of factory plant assets 539,000 49,000
Total P1,540,000 P134,400

Camembert incurred P1,183,000 direct labor costs for the 11-month period ended November 30 and used
102,200 machine hours for the same period. Jobs 113, 115 and 116 were completed during December.
However, only jobs 113 and 116 were delivered to customers as of December 31, 2017.

2. How much is the over- or under-applied overhead for 2017?

a. P15,400 over
b. P7,000 over
c. P15,400 under
d. P7,000 under

3. How much is the Finished Goods Inventory as of December 31, 2017?

a. P100,000
b. P135,000
 c. P119,600
d. P98,600

Moules Company accumulates cost using the process costing system. The following information is
related to the first department of the production process:
Work in process, October 1 (75% complete as to conversion) 10,000 units
Units completed and transferred to second department 140,000 units
Work in process, October 31 (40% complete as to 20,000 units
conversion)

Moules adds two types of special materials in department 1. The first material is added at the start of the
process while the second material is added at 50% conversion.

4. Using FIFO method, what would be the equivalent units for material 1, material 2, and
conversion costs, respectively?
a. 160,000; 130,000, 148,000
b. 160,000; 140,000; 148,000
c. 150,000; 130,000; 140,500
d. 150,000; 140,000; 140,500

Steak Company uses a process costing system in which all materials are added at the beginning of the
first process. During the past month, 10,000 units were started in production, and 8,000 were completed
and transferred to the next department. There were no beginning inventories. The ending inventories were
70% complete at the end of the month. The company uses the weighted-average method.

5. If Steak’s materials used in production cost P15,000 and its conversion costs incurred were
P24,975, what is the value of the ending work-in-process inventory in the first processing
department?
a. P3,720
b. P0
c. P6,720
d. P8,000

6. Assume that Steak uses FIFO instead of weighted average. If materials used in production cost
P15,000 and conversion costs incurred were P24,975, how much was transferred to the next
department under FIFO?
a. P36,255
b. P33,255
c. P32,000
d. P40,000

The wiring department is the second stage of Piperade Company's production cycle. On October 1, the
beginning work in process contained 25,000 units which were 60% complete as to conversion costs.
During October, 100,000 units were transferred in from the first stage of the production cycle. On
October 31, the ending work in process contained 20,000 units which were 80% complete as to
conversion costs. Direct materials are added in the wiring department at the end of the process.

7. Using the weighted-average method, what is the equivalent units for transferred in, materials and
conversion costs, respectively?
a. 100,000; 125,000; 100,000
b. 125,000; 105,000; 105,000
c. 125,000; 105,000; 121,000
d. 125,000; 125,000; 121,000
The following information is related to the first stage of a two-stage production process of Garbure
Company:
Beginning work in process (50% 2,000 units
complete)
Started during the period 8,000 units
Spoilage – normal 500 units
Ending work in process (80% complete) 2,500 units

Conversion costs in the beginning work in process amounted to P18,000 while current period conversion
costs totaled P148,250. Garbure inspects units in the first stage immediately before transferring these
units to the second stage of the production process.

8. Using the weighted average method, how much is the conversion cost transferred to the second
department?
a. P131,368
b. P122,647
c. P131,250
d. P122,500

Escargot Company produces two main products and a by-product out of a joint process. The ratio of
output quantifies to input quantities of direct material used in the joint process remains consistent from
month to month. Escargot has employed the physical-volume method to allocate joint production costs to
the two main products. The net realizable value of the by-product is used to reduce the joint production
costs before the joint costs are allocated to the main products. Data regarding Escargot’s operations for
the current month are presented in the chart below. During the month, Escargot incurred joint production
costs of P2,520,000. The main products are not marketable at the split-off point and, thus, have to be
processed further.
First Main Product Second Main Product By-product
Monthly output in 90,000 150,000 60,000
pounds
Selling price per pound P30 P14 P2
Separable process costs P540,000 P660,000

9. The amount of joint cost that Escargot would allocate to the Second Main Product by using the
physical-volume to allocate joint production costs would be
a. P1,260,000
b. P1,575,000
c. P1,500,000
d. P1,200,000

10. Assuming that the net realizable value of the by-product is recognized as part of other income
upon sale and the joint costs are allocated on the basis of theoretical net realizable value, how
much is the joint cost to be allocated to the First Main Product?
a. P1,440,000
b. P1,417,500
c. P1,350,000
d. P1,512,000

ABC Company incurred the following costs during the month: direct labor, P122,000; factory overhead,
P108,000; and direct material purchases, P160,000. Inventories show the following costs:
Beginning Ending
Finished goods P27,000 P30,000
Work in process 61,500 57,500
Direct materials 37,500 43,500

11. How much is the cost of goods manufactured?

 A. P443,500
B. P382,000
C. P386,000
D. P388,000

ABC Company’s Job 501 for the manufacture of 2,200 units was completed during August at the unit
costs: direct materials, P20; direct labor, P18 and factory overhead, P18. The factory overhead includes an
allowance of P1 for spoiled work. Final inspection of Job 501 disclosed that 200 units were spoiled.
These units were later sold to a jobber for P6,000.

12. Assuming that the spoilage loss is due to internal failure, what is the unit cost of Job 501?
A. P53
B. P55
C. P56
D. P58.60

13. Assuming that the spoilage loss is due to exacting specifications by the customer, what is the unit
cost of Job 501?
A. P53
B. P55
C. P57.50
D. P58.60

Pikachu Co. had 4,000 units work in process at November 1, 2017, which were 50% complete as to
conversion cost. During November, 27,000 units was completed. At November 30, 3,000 units remained
in WIP which were 45% complete as to conversion cost. Direct materials are added at the start of the
process.

14. How many units were started during November?

A. 26,000
B. 27,000
C. 28,000
D. 30,000

15. What is equivalent unit of production for conversion cost under FIFO method?
A. 30,000
B. 26,350
C. 26,300
D. 26,000
Charmeleon Inc manufactures two products, Jessie and James, from a joint process. Production run costs
P75,000 and results in 1,550 units of Jessie and 850 units of James. Both products must be processed past
the split-off point, incurring separable cost for Jessie of P5 per unit and for James of P6 per unit. The
market price of Jessie is P50 and for James is P45.

16. How much is joint cost allocated to Jessie using the physical measures method?
A. P 26,562.50
B. P 48,437.50
C. P 50,215.98
D. P 24,784.02
Squirtle Ltd. Produces joint products, Bubbles and Wiggle. The process also yields by-product Drip. Net
realizable value of by-product is treated using the production method. The following information pertains
to production in November 2017 at a joint cost of P525,000.
Product Units Produced Sales Value Additional cost after
split-off
 Bubbles 1,500 P900,000 P10,000
Wiggle 250 125,000 15,000
Drip 250 45,000 20,000

17. If Squirtle uses the net realizable value method for allocating joint cost, how much of the joint
cost should be allocated to product Bubbles?
A. P439,024.39
B. P445,000.00
C. P467,250.00
D. P460,975.61

18. If Squirtle uses the constant margin percentage method for allocating joint cost, how much is the
totalmanufacturing cost for product Wiggle?
A. P49,024.39
B. P70,000.00
C. P55,000.00
D. P64,024.39

19. How much is the revenue to be recognized in profit and lossfor the by-products assuming all units
were sold during the period?
A. P 0
B. P45,000
C. P25,000
D. P20,000
Wartortle Company manufactures chemical products through continuous process in different departments.
Each department has an independent cost accountant who prepares cost of production report. The
company uses FIFO costing method.

As the assigned cost accountant, the following production data for Department 1 for the month of
November 2017 were provided:

Work in process, November 1 (70% completed) 7,000 liters

Started in process 35,000 liters
Work in process, November 30 (60% completed) 6,000 liters
Normal lost units – continuous 1,000 liters

In this department, costs are applied as follows:

· Materials – added at the start
· Labor and overhead – uniformly applied throughout the production process

The below were costs incurred in November for Department 1:

Materials P44,200
Direct Labor 15,750
Overhead 9,525
Work in process – November 1 10,000

20. What is the equivalent units of production for materials?

A. 34,000
B. 35,000
C. 41,000
D. 42,000

21. How much is the cost allocated to ending work in process?

A. P 10,500.00
B. P 10,199.33
C. P 9,168.29
D. P 8,936.48
Marowak Manufacturing Company has the following production information (in units) for November of
the current year:

Work in process, beginning (10% complete) 3,500

Started 10,000
Work in process, ending (90% complete) 2,000

Marowak uses two kinds of materials in production. Material A is added when the process is 50%
complete, while 50% of Material B is added when the process is 40% complete and the balance at the end
of the process. Conversion cost is added uniformly throughout the process. Marowak uses FIFO method
of costing.

22. The equivalent units of production of Materials A and B are:

A. 13,500; 13,500
B. 13,500; 12,500
C. 12,950; 12,455
D. 13,150; 11,835

23. The equivalent units of production for conversion costs is

A. 12,950
B. 13,150
C. 13,300
D. 13,500

24. Meowth Manufacturing add materials at the start of operations in Process A. The beginning inventory
consisted of 3,000 units with material cost of P100,000 and labor and overhead costs of P20,000. At
the start of the period, 22,000 units were started in process with material cost of P450,00. Conversion
cost in the period amounted to P280,000. As of the end of January, the inventory was 100% complete
in materials but only 60% in labor and overhead. The ending inventory consisted of 5,000 units.
Using the weighted average method, the equivalent units of production for conversion costs for the
period was:
A. 22,000
B. 23,000
C. 20,000
D. 25,000

25. Persian Company has a cost per EUP of P20 for materials and P25 for conversion cost for its product.
There are 2,500 physical units in ending work in process, 50% compete as to conversion cost; and
70% complete as to material cost. The cost assignable to ending work in process inventory is:
A. P 112,500
B. P 81,250
C. P 68,750
D. P 66,250