St. Louis Anne Colleges of San Pedro, Laguna, Inc.

Old National Highway, Brgy. Nueva

City of San Pedro, Laguna
College Department
Long Quiz (Prelim) – AE1102 (Cost Accounting)

Name:_______________________________Course & Year:______________

Score:__________

Test I: Multiple Choice. Select the best answer by writing the letter before each number.

1. In job order costing, the basic document to accumulate the cost of each order is the
A. Invoice B. Purchase order C. Requisition order D. Job cost sheet
2. In a job-cost system, factory (manufacturing) overhead is:
An Indirect Cost of Jobs A Necessary Element of Production
A. No Yes
B. No No
C. Yes Yes
D. Yes No
3. In cost terminology, conversion costs consist of
A. Direct and indirect labor C. Direct labor and factory overhead
B. Direct labor and direct materials D. Indirect labor and variable factory
overhead
4. All costs related to manufacturing function in a company are:
A. Prime cost B. Direct cost C. Product cost D. Conversion cost
5. The work-in-process account is:
A. Neither a real nor a nominal account
B. An inventory account indicating the beginning and ending inventory of goods being
processed
C. A hybrid account (both a real and a nominal account)
D. A nominal account to which indirect costs are charged as incurred and credited as
these costs are charged to production.
6. It is a system that records, summarizes, analyzes, and interprets the details of the cost
of materials, labor, and overhead necessary to produce and sell an article.
A. Cost accounting B. Financial accounting C. Tax accounting D. Budgeting
7. All costs incurred in the factory that cannot be considered direct materials or direct
labor are classified as
A. Manufacturing overhead B. Direct costs C. Prime cost D. Not a cost
8. It reflects the cost of raw materials, direct labor, and manufacturing overhead of goods
which manufacturing has begun but has not been completed at the end of the period.
A. Finished goods inventory C. Work in process inventory
B. Raw materials inventory D. Cost of goods sold
9. It reflects the costs of goods that have been completed and are ready for sale.
A. Finished goods inventory C. Work in process inventory
B. Raw materials inventory D. Cost of goods sold
10. It is a system that accumulates costs applicable to each specified job order or lot of
similar goods manufactured on a specific order for stock or for a customer.
A. Process cost system C. Job order cost system
 B. Dual system D. Standard costing

Test II. Enumeration.

Give the types of cost systems.

11. 13.
12.

Give the 3 major manufacturing costs classification.

14. 16.
15.

Give the 3 distinct inventory accounts for a manufacturing company.

17. 19.
18.

The components of prime cost.

20. 21.

The components of conversion cost.

22. 23.

Give at least 2 system of cost accumulation.

24. 25.

Test III. Problems. Write your answer on the space provided.

26-40. Pink Company incurred the following costs during the month: direct labor, P120,000;
factory overhead, P108,000; and direct materials 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

Required/Compute: (2 pts each)

26. Cost of goods manufactured _________________________________
27. Cost of goods sold _________________________________
28. Materials available for use _________________________________
29. Goods available for sale _________________________________
30. Total manufacturing cost _________________________________
31. Total goods placed in process _________________________________
32. Prime cost _________________________________
33. Conversion cost _________________________________
34. Direct labor rate per hour assuming labor hour is 16,000 hours _________
35. Factory overhead rate per direct 16,000 direct labor hours ____________
36. Work in process inventory at the end of the month___________________
37. Finished goods inventory, beginning _______________________________
38. Finished goods at the end of the month ____________________________
39. Indirect materials used _________________________________
40. Indirect labor cost _________________________________

41-50. Last month, Pare Company placed P60,000 of materials into production. The Printing
Department used 8,000 labor hours at P5.60 per hour and the Binding Department used 4,600
hours at P6.00 per hour. Factory overhead is applied at P6.00 per labor hour in the Printing
Department and P8.00 per labor hour in the Binding Department. Pare’s inventory account
show the following balances:

Beginning Ending
Finished goods P22,000 P17,000
Work in process 15,000 17,000
Direct materials 20,000 18,000

Required/Compute: (2 pts each)

41. Direct materials used
42. Direct labor cost
43. Applied factory overhead
44. Total manufacturing cost
45. Total work placed in process
46. Cost of goods manufactured
47. Cost of goods available for sale
48. Cost of goods sold
49. Prime cost
50. Conversion cost
_________________________________
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51-60. Data pertaining to Lam Co.’s manufacturing operations:

Inventories 4/1 4/30

Direct materials P18,000 P15,000

Work in process 9,000 6,000
Finished goods 27,000 36,000

Additional information for the month of April:

Direct materials purchased P42,000

Direct labor payroll 30,000
Direct labor rate per hour 7.50
Factory overhead rate per direct labor hour 10.00

Required/Compute: (2 pts each)

51. Cost of goods manufactured
52. Cost of goods sold
53. Materials available for use
54. Goods available for sale
55. Total manufacturing cost
56. Total goods placed in process
57. Prime cost
58. Conversion cost
59.Direct labor cost
60. Factory overhead
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
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61-70. The records of Aurora, Inc. show the following information as of June 30, 2019.

Direct Labor 66,500.00

Finished Goods, June 1 30,000.00

Finished Goods, June 30 33,600.00

Indirect Materials Used 5,800.00

Manufacturing Overhead Applied 53,200.00

Materials inventory, June 1 50,000.00

Materials inventory, June 30 46,500.00

Materials Purchases 86,900.00

Work in Process Inventory, June 1 40,000.00

Work in Process, Inventory, June 30 19,200.00

Required/Compute: (2 pts each)

61. Direct materials used _________________________________

62. Direct labor cost _________________________________
63. Applied factory overhead _________________________________
64. Total manufacturing cost _________________________________
65. Total work placed in process_______________________________
66. Cost of goods manufactured ___________________________
67. Cost of goods available for sale ___________________________
68. Cost of goods sold ___________________________
69. Prime cost ___________________________
70. Conversion cost ___________________________