Chapter 1-2 COST Accounting AND Control BY DE LEON 2019 PDF

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Chapter 1TRUE/FALSE1. TRUE 6. FALSE2. TRUE 7. TRUE3. FALSE 8. FALSE4. TRUE 9. TRUE5. TRUE 10MULTIPLE CHOICE1. B 6. D 11. D2. C 7. A 12. B3. A 8. A 13. B4. C 9. B 14. A5. C 10 15. DChapter 2 - Costs – Concepts and classificationProblem 1- Ram Corporation Manufacturing overhead 6. Manufacturing overhe...

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Chapter 1 TRUE/FALSE 1. TRUE

6. FALSE

2. TRUE

7. TRUE

3. FALSE

8. FALSE

4. TRUE

9. TRUE

5. TRUE

10.TRUE

MULTIPLE CHOICE 1. B

6. D

11. D

2. C

7. A

12. B

3. A

8. A

13. B

4. C

9. B

14. A

5. C

10.D

15. D

Chapter 2 - Costs – Concepts and classification Problem 1- Ram Corporation 1. Manufacturing overhead 2. Manufacturing overhead 3. Direct materials 4. Direct labor 5. Manufacturing overhead

6. Manufacturing overhead 7. Direct materials 8. Manufacturing overhead 9. Manufacturing overhead 10. Manufacturing overhead

Problem 2 1. Manufacturing 2. Selling 3. Manufacturing 4. Selling 5. Administrative

6. Manufacturing 7. Administrative 8. Selling 9. Administrative 10.Selling

Problem 3-Rocco

Product Cost Direct mat. Direct labor

1. 2. 3. 4. 5. 6. 7. 8. 9.

DM 220,000 Factory rent Direct labor Factory utilities Supervision Depreciation-FE Sales Commission Advertising 47,000 Depreciation-OE 10,000 10. Salary - pres.

Period Cost Mfg. OH Selling

Adm.

50,000 180,000 8,500 60,000 20,000 57,000

1. TOTAL PRODUCT COST = 220,000 + 180,000 + 138,500 2. TOTAL PERIOD COST = 57,000 + 307,000 3. COST PER UNIT = 538,500/ 40,000 units = P 13,4625

250,000

Problem 4 – Bug Company 1. Fixed Period

6. Variable

Period

2. Fixed

Inventoriable

7. Variable

Inventoriable

3. Fixed

Inventoriable

8. Fixed

Inventoriable

4. Variable

Inventoriable

9. Fixed

Period

5. Fixed

Inventoriable

10. Fixed

Inventoriable

Problem 5 – Mighty Muffler, Inc. a. P 50,000 b. P 50,000 c. P 60,000 = P120/muffler x 400 = P 48,000 500 d. P 120 x 800 = P 96,000 e. P 50,000 + P 48,000 = P 98,000 f. P 50,000 + P 96,000 = P 146,000 g. P 50,000/ 400 = P 125 h. P 50,000/500 = P 100 I, P 50,000/800 = P 62.50 j. P 48,000/400 = P 120 k. P 60,000/500 = P 120 l. P 96,000/800 = P 120 m. P 125 + P 120 = P 245 n. P 100 + P 120 = P 220 o. P 62.50 + P 120 = P 182.50

Problem 6 – Marvin Desk 1. DM

8. OH

2. OH

9. OH

3. OH

10. DL

4. OH

11. OH

5. DL

12. OH

6. OH

13, OH

7. OH

14. OH

15. DM

Problem 7 – Mother Goose Company 1. Prime costs

- 530,000

2. Conversion cost

- 575,000

3 Inventoriable cost

- 860,000

4. Total period costs

- 305,000

Problem 8 – a. c - fixed (total amount is constant) b. a – variable (4,480/3,200 = 1.40; 6,300/4,500 = 1.40 per unit is constant) c. d - mixed ( 3,950/3,200 = 12.34; 5,250/4,500 = 1.16) total amount and amount per unit varies in relation to units sold)

Problem 9 - Blanche Corporation 1.

Direct materials used Direct labor

20.00

Variable manufacturing overhead

15.00

Variable marketing Total variable cost per unit X No. of units produced and sold

2.

P 32.00

3.00 70.00 12,000

Total variable costs per month

P 840,000

Fixed manufacturing overhead

P 6.00

Fixed marketing costs Total fixed cost per unit X No. of units produced and sold Total fixed costs per month

4.00 10.00 12,000 P 120,000

Problem 10 1.

Direct materials Direct labor Variable manufacturing overhead

2.

P 60.00 30.00 9.00

Total variable manufacturing cost per unit

P 99.00

Total variable manufacturing cost per unit

P 99.00

Variable marketing and administrative Total variable costs per unit

6.00 105.00

3.

Total variable manufacturing cost per unit

P 99.00

Fixed manufacturing overhead (30,000/1,200)

4.

25.00

Full manufacturing cost per unit

124.00

Full manufacturing cost per unit

124.00

Variable marketing and administrative

6.00

Fixed marketing and administrative

20.00

Full cost to make and sell per unit

150.00

Problem 11 – Johnson Corporation 1. Variable cost per machine hour = 35,600 – 20,000 4,000 - 2,000 = 7.80 per machine hour

2. Total electricity expense

4,000 hours 35,600

2000 hours 20,000

Less: Variable costs (4,000 x 7.80)

31,200

(2000 x 7.80) Fixed cost 3. Fixed cost

15,600 4,400

4,400 4,400

Variable cost (4,500 x 7.50)

35,100

Total manufacturing costs

39,500

Problem 12 – Valdez Motors Co. 1. Variable cost per machine hour = 5,475 – 3,975 210 - 145 = 23.08 per machine hour

2.

210 hours

Total overhead costs

5,475

145 hours 3,975

Less: Variable costs ( 210 x 23.08)

4,847

( 145 x 23.08)

3,347

Fixed cost

628

628

Problem 13 – Marco Company Department A 1.

Direct materials Direct labor Factory supplies Direct variable costs

Department B

P 400,000 350,000 10,000 P 760,000

P 700,000 600,000 24,000 P 1,324,000

P 45,000

P 55,000

P 100,000

P 180,000

2. Controllable direct fixed costs Supervisory salaries 3. Uncontrollable direct fixed costs: Depreciation – machinery and Equipment

4. Controllable direct fixed cost

P 45,000

P 55,000

Uncontrollable direct fixed cost

100,000

180,000

Total direct fixed cost

P 145,000

P 235,000

5. Allocated costs from headquarters P 120,000

P 180,000

Allocated repairs & maintenance

40,000

80,000

Allocated factory rent – bldg.

60,000

140,000

140,000

210,000

P 360,000

P 610,000

P 120,000

P 180,000

60,000

140,000

Allocated plant executive’s salaries

140,000

210,000

Depreciation- mach. & equipment

100,000

180,000

P 420,000

P 710,000

Allocated plant executive’s salaries Total indirect costs

6. Allocated costs from headquarters Allocated factory rent – bldg.

Total unavoidable costs

True/False Questions 1. False

6. True

11. False 16. True

2. False

7. False

12. False 17. False

3. True

8. True

13. True

4. False

9. False

14. False 19. False

5. False

10. True

15. False 20. True

18. True

Multiple choice 1. B

11. C

21. A

2. C

12. D

22. C

3. B

13. C

23. A

4. C

14. B

24. C

5. D

15. A

25. D

6. A

16. B

26. B

7. D

17. B

27. A

8. D

18. A

28. B

9. B

19. D

29. C

10. C

20. B

30. B...