Assignment-2-CAC - EEEEE PDF

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AE121-CAC: Cost Accounting and ControlNAME :SECTION :MULTIPLE CHOICE(1 point each) Indirect material cost is a Conversion Cost a. No b. No c. Yes d. Yes Prime cost No Yes Yes No Direct labor cost is a Conversion cost a. No b. No c. Yes d. Yes Prime cost No Yes Yes No Indirect labor is a a. Prime cos...

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AE121-CAC: Cost Accounting and Control

NAME SECTION

: :

MULTIPLE CHOICE (1 point each) Prime cost No Yes Yes No

1. Indirect material cost is a Conversion Cost a. No b. No c. Yes d. Yes 2. Direct labor cost is a Conversion cost a. No b. No c. Yes d. Yes

Prime cost No Yes Yes No

3. Indirect labor is a a. Prime cost. b. Conversion cost. c. Period cost. d. Non - manufacturing cost. 4. In a job cost system manufacturing overhead An indirect cost of jobs a. No b. No c. Yes d. Yes

is A necessary element of production Yes No Yes No

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AE121-CAC: Cost Accounting and Con

5. Prime cost and conversion cost share what common element of total cost? a. Variable overhead. b. Fixed overhead. c. Direct materials. d. Direct labor 6. Which of the following is an element of prime cost? Direct DirectLabor materials Yes a. Yes No b. Yes Yes c. No No d. No

7. Wages paid to factory machine operators of a manufacturing plant are an element of Conversion cost Prime Cost No a. No Yes b. No No c. Yes Yes d. Yes

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AE121-CAC: Cost Accounting and Con

8. Costs that vary inversely with changes in volume include a. Total variable costs. b. Total variable costs divided by volume. c. Total fixed costs. d. Total fixed costs divided by volume.

9. When a unit of product is the cost object, factory overhead generally is: a. A direct manufacturing cost. b. An indirect manufacturing cost. c. Both of the above. d. None of the above.

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10. Factory rent is a. A prime cost and an inventoriable cost. b. A prime cost and a period cost c. A conversion cost and an inventoriable cost. d. A conversion cost and a period cost.

11. Examples of factory overhead costs are a. Lubricants for factory machinery. b. Depreciation of factory machinery. c. Both of the above. d. None of the above. 12. In a. b. c. d.

general, the cost that could usually be most reliably predicted is: Variable cost per unit. Fixed cost per unit Total variable cost. Total fixed cost.

13. Factory supplies used would be an example of which of the following? Prime Cost Conversion Cost Yes a. Yes No b. Yes Yes c. No No d. No 14. For a manufacturing company, which of the following is an example of a period rather than a product cost? a. Depreciation of factory equipment. b. Wages of a salesperson. c. Wages of machine operators. d. Insurance on factory equipment. 15. The variable portion of the semi-variable cost of electricity for a manufacturing plant is a: Conversion Cost Prime Cost a. Yes Yes b. Yes No c. No Yes d. No No

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16. Indirect costs are also known as: a. Differential costs b. Common costs c. Opportunity costs d. Sunk costs 17. Variable cost a. increases on a per unit basis as the number of units produced increases. b. is constant if expressed on a per unit basis. c. remains the same in total as production increases d. is not affected by changes in activity from period to period. 18. All of the following are examples of product costs except: a. depreciation on the company's retail outlets. b. salary of the plant manager. c. insurance on the factory equipment d. rental costs of the factory facility. 19. The distinction between indirect and direct costs depends on a. whether a cost is controllable or noncontrollable. b. whether a cost is variable or fixed. c. whether a cost is a product or a period cost. d. whether a cost can be conveniently and physically traced to a unit under consideration.

20. Which of the following should not be included as manufacturing overhead in the manufacture of a wooden chair? a. Glue in the chair b. The amount paid to the individual who stains the chair c. The workman's compensation insurance of the supervisor who oversees production d. The factory utilities of the department in which production takes place

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MULTIPLE CHOICE – PROBLEMS (2 points each) The following costs related to Antonio Industries for the last quarter: P 435,000 Conversion cost 215,000 Direct materials 190,000 Manufacturing overhead 185,000 Selling and administrative expense 1. What is Antonio's prime cost for last quarter? a. P 460,000 b. P 410,000 c. P 405,000 d. P 375,000 2. Antonio's total manufacturing cost is a. P 460,000 b. P 645,000 c. P 650,000 d. P 840,000 3. Antonio's total period cost is a. P 185,000 b. P 275,000 c. P 400,000 d. P 620,000 Milktopia,Inc. produces and sells milk flavored bubble gum. Over the last five months Milktopia had the following production cost and production volume.

Month March April May June July

Cost P6,000 6,659 8,370 8,800 8,050

Volume (in cases) 12 14 18 19 17

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4. Using the high low method, what is the fixed cost per month of the bubblegum production? a. P400 b. P1,200 c. P4,800 d. P7,600 5. The variable cost per case is a. P400 b. P600 c. P1,200 d. 2,800 Justine Co. produced 5,500 outdoor chairs for Job Order No. 610. Total material cost was P51,700. Each chair required 2.2 hours of direct labor at P8.90 / hour. A total of P53,845 of factory overhead was traced to Order 610.

6. What is the prime cost per unit of this order? a. P 19.58 b.P28.98 c.P29.37 d.P38.77 7. What is the conversion cost per unit of this order? a. P 19.58 b. P 28.98 c. P 29.37 d. P 38.77 8. What is the unit cost of this order? a. P 37.88 b. P38.77 c. P28.09 d. P36.99 d. P 36.99 During the month of August, Amer Corporation produced 12,000 units and sold them for P20 per unit. Total fixed cost for the period were P 154,000, and the operating profit was P 26,000. 9. Based on the foregoing information, the variable cost per unit is a. P 4.50

c. P 6.00

b. P 5.00

d. P 7.17

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Data to be used in applying the high - low method shows the highest cost of P69,000 and the lowest cost of P52,000. The data show P148,000 as the highest level of sales and P97,000 as the lowest level. 10. What is the variable cost per peso sales? a. P 0.33

c. P 0.54

b. P0.47

d. P 3.00

Ravena Company manufactures office furniture. During the most productive month of the year, 3,500 desk were manufactured at a total cost of P84,400. In its slowest month, the company made 1,100 desk at a cost of P46,000. 11.Using the high low method of cost estimation, the total fixed cost are a. P56,000

c. P17,600

b. P28,400

d. P38,400

12.The variable cost per unit is a. P16.00

c. P14.00

b. P15.00

d. P17.00

Last year, Abner Company incurred the following costs Direct materials P50,000 Direct labor 20,000 Factory overhead 130,000 Selling expense 40,000 Administrative expense 36,000 Units produced and sold 10,000 units at a price P31 each 13. Prime cost per unit is a. P 7.00 b. P15.00

c. P 5.00 d. P20.00

14. Conversion cost per unit is a. P 7.00 b. P 15.00 15. Cost of goods sold per unit is a. P 7.00 b. P 15.00

c P20.00. d. P26.00

c. P 20. d. P26.00

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16. Gross profit per unit is a. P 11.00 b. P 15.00

c. P 16.00 d. P 24.00

17. Operating income is a. P 24,000 b. P 110,000

c. P 74,000 d. P110,000

34,000 Norman Company produced 1,000 units of a product which was sold at a price of P95.00 each. Total selling and administrative incurred P30,000 Direct materials

P25.00

Direct labor

P16.00

Factory overhead

P19.00

18. Conversion cost per unit is a. P 41.00 b. P 44.00 c. P35.00 d. P45.00 19. Cost of goods sold per unit is a. P 41.00 b. P44.00 c. P35.00 d. P60.00 20. Gross profit per unit is a. P54.00 b. P51.00 c. P60.00 d. P35.00

EXERCISE 2

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