CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
COSTACCOUNTI
NGSYSTEMS
Pr
oductcost
i
ng
6.Pr
oductcost
i
ngsyst
em desi
gnorsel
ect
i
on:
A.r
equi
r
esanunder
st
andi
ngoft
henat
ur
eoft
hebusi
ness
B.shoul
dpr
ovi
deus
ef
ulcosti
nf
or
mat
i
onf
orst
r
at
egi
candoper
at
i
onal
deci
si
onneeds
C.shoul
dbecostef
f
ect
i
vei
ndesi
gnandsel
ect
i
on
D.al
l
t
heaboveanswer
sar
ecor
r
ect
A.TRADI
TI
ONALCOSTACCOUNTI
NG
THEORI
ES:
Basi
cconcept
s
CostAccount
i
ng
1
. Costaccount
i
ngi
nvol
vest
hemeasur
i
ng,r
ecor
di
ng,andr
epor
t
i
ngof
A.pr
oductcost
s
C.f
ut
ur
ecost
s
B.manuf
act
ur
i
ngpr
ocess
D.manager
i
al
account
i
ngdeci
si
ons
Costconcept
s
Commi
t
t
ed vs.Di
scr
et
i
onar
yf
i
xedcost
s
Commi
t
edf
i
xedcost
s
7.Whi
choft
hef
ol
l
owi
ngi
sanexampl
eofacommi
t
t
edf
i
xedcost
s?
A.di
r
ectmat
er
i
al
s
C.super
vi
sor
’
B.depr
eci
at
i
ononaf
act
or
ybui
l
di
ngD.i
nsur
anceonabui
l
di
ng
Costmanagement
3.Thecostmanagementf
unct
i
oni
susual
l
yunder
A.t
hechi
efi
nf
or
mat
i
onof
f
i
cer
.
C.pur
chasi
ngmanager
.
B.t
r
easur
er
.
D.cont
r
ol
l
er
.
2.Thecostmanagementi
nf
or
mat
i
onsyst
em pr
ovi
desi
nf
or
mat
i
on
A.t
hatt
heaccount
antneedst
opr
epar
et
hef
i
nanci
al
st
at
ement
s.
B.t
hatt
hemanagerneedst
oef
f
ect
i
vel
ymanaget
hef
i
r
m.
C.t
hat t
he manager needs t
o ef
f
ect
i
vel
y manage not
f
or
pr
of
i
t
or
gani
zat
i
on.
D.bandc.
1
6.Anexampl
eofacommi
t
t
edf
i
xedcosti
s:
A.at
r
ai
ni
ngpr
ogr
am f
orsal
esper
sons
.
B.execut
i
vet
r
avel
expenses
.
C.pr
oper
t
yt
axesont
hef
act
or
ybui
l
di
ng.
D.newpr
oductr
esear
chanddevel
opment
.
Di
scr
et
i
onar
yf
i
xedcost
8.Whi
choft
hef
ol
l
owi
ngi
sanexampl
eofdi
scr
et
i
onar
yf
i
xedcost
?
A.di
r
ectl
abor
C.pr
oper
t
y t
axes on a f
act
or
y
bui
l
di
ng
B.i
nsur
anceonabui
l
di
ng
D.depr
eci
at
i
ononaf
act
or
ybui
l
di
ng
4.Themai
nf
ocusofcostmanagementi
nf
or
mat
i
onmustbe
A.usef
ul
nessandaccur
acy.
C.usef
ul
nessandt
i
mel
i
ness
.
B.t
i
mel
i
nessandaccur
acy.
D.r
el
evanceandgoodf
or
mat
.
5.Wi
t
h r
egar
d t
o t
he t
ask of management
’
, cost
managementi
nf
or
mat
i
oni
sneededt
o
A.make sound st
r
at
egi
c deci
si
ons r
egar
di
ng choi
ce of pr
oduct
s,
met
hods,andt
echni
ques
.
B.suppor
tr
ecur
r
i
ng deci
si
ons r
egar
di
ng r
epl
acementofequi
pment
,
managi
ngcashf
l
ow,et
c.
C.pr
ovi
deaf
ai
randef
f
ect
i
vebasi
sf
ori
dent
i
f
yi
ngi
nef
f
i
ci
entoper
at
i
ons.
D.pr
ovi
de accur
at
e account
i
ng f
ori
nvent
or
y,r
ecei
vabl
es
,and ot
her
asset
s.
Cont
r
ol
l
abl
ecost
s
1
0.Cont
r
ol
l
abl
ecost
sar
e:
A.Cost
st
hatmanagementdeci
dest
oi
ncuri
nt
he cur
r
entper
i
od t
o
enabl
et
hecompanyt
oachi
eveoper
at
i
ngobj
ect
i
vesot
hert
hant
he
f
i
l
l
i
ngofor
der
spl
acedbycust
omer
s
.
B.Cost
st
hatar
egover
nedmai
nl
ybypastdeci
si
onst
hatest
abl
i
shedt
he
pr
esentl
evel
sofoper
at
i
ngandor
gani
zat
i
onalcapaci
t
yandt
hatonl
y
changesl
owl
yi
nr
esponset
osmal
l
changesi
ncapaci
t
y.
739
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
C.Cost
st
hatwi
l
l
unaf
f
ect
edbycur
r
entmanager
i
al
deci
si
ons
.
D.Cost
st
hatar
el
i
kel
yt
or
espondt
ot
heamountofat
t
ent
i
ondevot
edt
o
t
hem byaspeci
f
i
edmanager
.
Pr
oductCostvs.Per
i
odCost
Per
i
odcost
1
8.Whi
choft
hef
ol
l
owi
ngwoul
dNOTbeaper
i
odcostf
oramanuf
act
ur
i
ng
f
i
r
m?
A.Sel
l
i
ngexpenses
B.Sal
ar
ypai
dt
ot
heCEOoft
hecompany
C.Repai
r
st
ot
heRecept
i
oni
st
'
scomput
er
D.Ut
i
l
i
t
i
esi
nmanuf
act
ur
i
ngpl
ant
1
1
.Cont
r
ol
l
abl
e cost
sf
orr
esponsi
bi
l
i
t
y account
i
ng pur
poses ar
e di
r
ect
l
y
i
nf
l
uencedonl
yby
A.Agi
venmanagerwi
t
hi
nagi
venper
i
od.
B.Achangei
nact
i
vi
t
y.
C.Pr
oduct
i
onvol
ume.
D.Sal
esvol
ume.
Di
r
ectvs.i
ndi
r
ectcost
s
1
7.Whatki
ndofcost
scanbeconveni
ent
l
yandeconomi
cal
l
yt
r
acedt
oacost
obj
ectorpool
?
A.I
ndi
r
ectCost
s.
C.Di
r
ectCost
s.
B.Rel
evantCost
s.
D.Over
headCost
s.
I
mput
edcost
s
1
2.Ani
mput
edcosti
s
A.Thedi
f
f
er
encei
nt
ot
alcost
swhi
chr
esul
t
sf
r
om sel
ect
i
ngonechoi
ce
i
nst
eadofanot
her
.
B.Acostt
hatdoesnotent
ai
lanycashout
l
aybutwhi
chi
sr
el
evantt
ot
he
deci
si
onmaki
ngpr
ocess
.
C.Acostt
hatmaybeshi
f
t
edt
ot
hef
ut
ur
ewi
t
hl
i
t
t
l
eornoef
f
ectoncur
r
ent
oper
at
i
ons
.
D.Acostt
hatcont
i
nuest
obei
ncur
r
edevent
hought
her
ei
snoact
i
vi
t
y.
47.Di
r
ectpr
oductexpens
es
A.ar
ei
ncur
r
edf
ort
hebenef
i
toft
hebusi
nessasawhol
e
B.cannotbei
dent
i
f
i
edr
eadi
l
ywi
t
hagi
venpr
oduct
C.canbeassi
gnedt
opr
oductonl
ybyapr
oces
sofal
l
ocat
i
on
D.woul
dnotbei
ncur
r
edi
ft
hepr
oductdi
dnotexi
st
CostAccor
di
ngt
oBehavi
or
Semi
var
i
abl
ecost
s
1
4.Semi
var
i
abl
ecost
s
A.peruni
tr
emai
nt
hesamer
egar
dl
essoft
ot
al
out
put
B.r
emai
nt
hesamewi
t
hi
nt
her
el
evantr
angeofout
put
C.i
ncr
easei
nst
epsast
heamountoft
hecostdr
i
vervol
umei
ncr
eases
D.havebot
hf
i
xedandvar
i
abl
ecomponent
si
nt
hem
9.Thedi
st
i
nct
i
onbet
weendi
r
ectandi
ndi
r
ectcost
sdependsonwhet
hera
cost
A.i
scont
r
ol
l
abl
eornoncont
r
ol
l
abl
e.
B.i
svar
i
abl
eorf
i
xed.
C.can be conveni
ent
l
y and physi
cal
l
yt
r
aced t
o a costobj
ectunder
consi
der
at
i
on.
D.wi
l
l
i
ncr
easewi
t
hchangesi
nl
evel
sofact
i
vi
t
y.
St
epcost
1
5.Ast
epcosti
s
A.t
hesameassemi
f
i
xedcost
B.t
hesameasmi
xedcost
C.acostt
hati
ncr
easesi
nst
epsast
heamountofcost
dr
i
vervol
ume
i
ncr
eases
D.aandconl
y.
1
9.Ofmostr
el
evancei
ndeci
di
nghow i
ndi
r
ectcost
sshoul
dbeassi
gnedt
o
pr
oduct
si
st
hedegr
eeof
A.Li
near
i
t
y.
C.Avoi
dabi
l
i
t
y.
B.Causal
i
t
y.
D.Cont
r
ol
l
abi
l
i
t
y.
Compr
ehensi
ve
740
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
1
3.Al
mos,I
nc.makesski
boar
dsi
nDavao.I
dent
i
f
yt
hecor
r
ectmat
chi
ngof
t
er
ms.
A.Fi
ber
gl
assi
sf
act
or
yover
head
B.Pl
antr
eal
est
at
et
ax
esar
eaper
i
odcost
C.Depr
eci
at
i
onondel
i
ver
yt
r
ucksi
sapr
oductcost
D.Payr
ol
l
t
axesf
orwor
ker
si
nt
hePackagi
ngDept
.ar
edi
r
ectl
abor
C.Assumpt
i
on ofcor
r
el
at
i
on bet
ween di
r
ectl
aboran i
ncur
r
ence of
over
headcost
.
D.Useofmul
t
i
pl
ecostdr
i
ver
st
oal
l
ocat
eover
head.
Tr
adi
t
i
onal
Cost
i
ngAccount
i
ng
28.
Anaccount
i
ngsyst
em t
hatf
ocusesont
r
ansact
i
onsi
s
A.anact
i
vi
t
ybasedaccount
i
ngsyst
em.
C.
a
t
r
adi
t
i
onal
account
i
ngsyst
em.
B.apr
oductl
i
f
ecycl
ecost
i
ngsyst
em. D. al
l
oft
heabove.
Over
headal
l
ocat
i
on
35.
Convent
i
onal
pr
oductcost
i
nguseswhi
choft
hef
ol
l
owi
ngpr
ocedur
es?
A.Over
headcost
sar
et
r
acedt
odepar
t
ment
s,t
hencost
sar
et
r
acedt
o
pr
oduct
s.
B.Over
head cost
sar
et
r
aced t
o act
i
vi
t
i
es,t
hen cost
sar
et
r
aced t
o
pr
oduct
s.
C.Over
headcost
sar
et
r
aceddi
r
ect
l
yt
opr
oduct
.
D.Al
l
over
headcost
sar
eexpensedasi
ncur
r
ed.
29.
Tr
adi
t
i
onal
l
y,manager
shavef
ocusedcostr
educt
i
onef
f
or
t
son
A.act
i
vi
t
i
es.
C.depar
t
ment
s
.
B.pr
ocesses.
D.cost
s
.
36.
Theover
headr
at
esoft
het
r
adi
t
i
onal
appr
oacht
opr
oductcost
i
nguse
A.nonuni
t
basedcostdr
i
ver
s
C.uni
t
basedcostdr
i
ver
s
B.pr
ocesscost
i
ng
D.j
obor
dercost
i
ng
33.
Whi
choft
hef
ol
l
owi
ngi
sat
r
ai
tofat
r
adi
t
i
onal
costmanagementsyst
em?
A.uni
t
baseddr
i
ver
s
C.t
r
aci
ngi
si
nt
ensi
ve
B.det
ai
l
edact
i
vi
t
yi
nf
or
mat
i
on
D.f
ocusonmanagi
ngact
i
vi
t
i
es
Ef
f
ectofTr
adi
t
i
onal
over
headal
l
ocat
i
on
22.
Theuseofuni
t
basedact
i
vi
t
ydr
i
ver
st
oassi
gncost
st
endst
o
A.over
costl
owvol
umepr
oduct
s. C.over
costal
l
pr
oduct
s.
B.over
costhi
ghvol
umepr
oduct
s.D.under
costal
l
pr
oduct
s.
23.
Whi
choft
hef
ol
l
owi
ngi
st
ypi
cal
l
yr
egar
dedasacostdr
i
veri
nt
r
adi
t
i
onal
account
i
ngpr
act
i
ces
?
A.numberofpur
chaseor
der
spr
ocessed C.
number
of
t
r
ansact
i
onspr
ocessed
B.numberofcust
omer
sser
ved
D.number of di
r
ect l
abor hour
s
wor
ked
30.
Tr
adi
t
i
onal
over
headal
l
ocat
i
onsr
esul
ti
nwhi
choft
hef
ol
l
owi
ngsi
t
uat
i
ons?
A.Over
head cost
s ar
e assi
gned as per
i
od cost
st
o manuf
act
ur
i
ng
oper
at
i
ons
.
B.Hi
ghvol
ume pr
oduct
sar
e assi
gned t
oo much over
head,and l
owvol
umepr
oduct
sar
eassi
gnedt
ool
i
t
t
l
eover
head.
C.Lowvol
ume pr
oduct
s ar
e assi
gned t
oo much,and hi
ghvol
ume
pr
oduct
sar
eassi
gnedt
ool
i
t
t
l
eover
head.
D.Ther
esul
t
i
ngal
l
ocat
i
onscannotbeusedf
orf
i
nanci
al
r
epor
t
s.
21
.Whi
choft
hef
ol
l
owi
ng i
snotat
r
ai
tofat
r
adi
t
i
onalcostmanagement
syst
em?
A.uni
t
baseddr
i
ver
s
C.f
ocusonmanagi
ngact
i
vi
t
i
es
B.al
l
ocat
i
ngi
nt
ensi
ve
D.nar
r
owandr
i
gi
dpr
oductcost
i
ng
32.
Pr
oductcost
scanbedi
st
or
t
edi
fauni
t
basedcostdr
i
veri
susedand
A.nonuni
t
based over
head cost
sar
e a si
gni
f
i
cantpr
opor
t
i
on oft
ot
al
over
head
B.t
heconsumpt
i
onr
at
i
osdi
f
f
erbet
weenuni
t
basedandnonuni
t
based
i
nputcat
egor
i
es
24.
Whi
choft
hef
ol
l
owi
ngi
snott
ypi
cal
oft
r
adi
t
i
onal
cost
i
ngsyst
ems?
A.Useofasi
ngl
epr
edet
er
mi
nedover
headr
at
e.
B.Useofdi
r
ectl
aborhour
sordi
r
ectl
aborcostt
oassi
gnover
head.
741
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
C.bot
haandb
D.nei
t
heranorb
38.
Nomat
t
erwhi
chmet
hodi
sused,under
appl
i
edorover
appl
i
edover
head
usual
l
yi
sadj
ust
edonl
y:
A.att
heendofayear
.
B.mont
hl
ydur
i
ngt
heyear
C.i
ft
hedi
f
f
er
enceex
ceedsP1
,
000oroneper
centoft
ot
al
over
head.
D.whent
hecompany'
spr
of
i
tpr
oj
ect
i
onsr
equi
r
eanadj
ust
ment
Pr
ocessCost
i
ng
40.
Whi
choft
hef
ol
l
owi
ng i
t
emsi
snotachar
act
er
i
st
i
cofapr
ocesscost
syst
em?
A.Once pr
oduct
i
on begi
ns
,i
tcont
i
nues unt
i
lt
he f
i
ni
shed pr
oduct
emer
ges
B.Thepr
oduct
spr
oducedar
ehet
er
ogeneousi
nnat
ur
e
C.Thef
ocusi
soncont
i
nual
l
ypr
oduci
nghomogeneouspr
oduct
s
D.Whent
hef
i
ni
shedpr
oductemer
ges
,al
luni
t
shavepr
eci
s
el
yt
hesame
amountofmat
er
i
al
s,l
abor
,andover
head
Act
ual
Cost
i
ng
43.
Di
sadvant
agesofact
ual
cost
i
ngi
ncl
ude
A.act
ual
costsyst
emscannotpr
ovi
deaccur
at
euni
tcosti
nf
or
mat
i
onona
t
i
mel
ybasi
s
B.act
ualcostsyst
emspr
oduceuni
tcost
st
hatf
l
uct
uat
ef
r
om per
i
odt
o
per
i
od
C.est
i
mat
esmustbeusedwhencal
cul
at
i
ngt
heact
ual
over
headr
at
e
D.aandb
Act
ual
Cost
i
ng,Nor
mal
cost
i
ng,&St
andar
dCost
i
ng
Pr
edet
er
mi
nedover
headr
at
e
39.
Thef
or
mul
af
orcomput
i
ngt
hepr
edet
er
mi
nedmanuf
act
ur
i
ngover
head
r
at
ei
sest
i
mat
edannualover
headcost
sdi
vi
dedbyanexpect
edannual
oper
at
i
ngact
i
vi
t
y,expr
essedas
A.di
r
ectl
aborcost
C.di
r
ectl
aborhour
s
B.machi
nehour
s
D.anyoft
hese
Nor
mal
Cost
i
ng
42.
Thepr
i
nci
pal
di
f
f
i
cul
t
ywi
t
hnor
mal
cost
i
ngi
st
hat
A.t
heuni
tcosti
nf
or
mat
i
oni
snotr
ecei
vedonat
i
mel
ybasi
s
B.i
tcanr
esul
ti
nf
l
uct
uat
i
ngper
uni
tover
headcost
s
C.est
i
mat
ed over
head and est
i
mat
ed act
i
vi
t
yar
el
i
kel
yt
o di
f
f
erf
r
om
act
ualover
head and act
ualcost
s
,r
esul
t
i
ng i
n under
appl
i
ed or
over
appl
i
edover
head
D.t
her
ei
snodi
f
f
i
cul
t
yassoci
at
edwi
t
husi
ngnor
mal
cost
i
ng
37.
Thet
womai
nadvant
agesofusi
ngpr
edet
er
mi
nedf
act
or
yover
headr
at
es
ar
et
opr
ovi
demor
eaccur
at
euni
tcosti
nf
or
mat
i
onandt
o:
A.si
mpl
i
f
yt
heaccount
i
ngpr
ocess
B.pr
ovi
decosti
nf
or
mat
i
ononat
i
mel
ybasi
s
C.i
nsur
et
r
ansmi
ssi
onofcor
r
ectdat
a
D.adj
ustf
orvar
i
ancesi
ndat
asour
ces
46.
Nor
mal
cost
i
ngandst
andar
dcost
i
ngdi
f
f
eri
nt
hat
A.t
het
wosyst
emscanshowdi
f
f
er
entover
headbudgetvar
i
ances.
B.onl
ynor
mal
cost
i
ngcanbeusedwi
t
habsor
pt
i
oncost
i
ng.
C.t
het
wosyst
emsshow di
f
f
er
entvol
umevar
i
ancesi
fs
t
andar
dhour
sdo
notequal
act
ual
hour
s
.
D.nor
mal
cost
i
ngi
sl
essappr
opr
i
at
ef
ormul
t
i
pr
oductf
i
r
ms
.
34.
Theef
f
ectofuni
f
or
m pr
oduct
i
onl
evel
sonpr
oduct
i
oncostperuni
tcanbe
achi
eved
A.byusi
ngaf
act
or
yover
headr
at
ebasedondi
f
f
er
entpr
oduct
i
onl
evel
s
f
oreachyear
B.byusi
ngaf
act
or
yover
headr
at
ebasedonsel
l
i
ngpr
i
ce
C.bycl
osi
ngt
hef
act
or
yover
headatt
heendoft
heaccount
i
ngper
i
od
D.byusi
ngaf
act
or
yover
headr
at
ebasedonl
ongr
unnor
mal
pr
oduct
i
on
act
i
vi
t
yl
evel
St
andar
dCost
i
ng
20.
Thepr
oductcostwhi
chi
sdet
er
mi
ned i
naconvent
i
onalst
andar
d cost
account
i
ngsyst
em i
sa(
an)
742
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
A.Joi
ntcost
.
B.Fi
xedcost
.
C.Expect
edcost
.
D.Di
r
ectcost
.
41
.Whyi
si
tbet
t
ert
ousesepar
at
eover
headr
at
es
?
A.Somedepar
t
ment
sar
el
abor
i
nt
ensi
ve,somear
emachi
nei
nt
ensi
ve.
B.Laborr
at
esvar
yconsi
der
abl
yamongdepar
t
ment
s.
C.Ther
esul
t
i
ngover
headr
at
esar
eal
l
aboutt
hesame.
D.Al
l
j
obsr
equi
r
eaboutt
hesameper
cent
ageoft
i
mei
nal
l
depar
t
ment
s.
Pl
ant
wi
devs.Depar
t
ment
si
deOver
headRat
es
44.
Vol
umebasedpl
ant
wi
der
at
espr
oducei
naccur
at
epr
oductcostwhen:
A.al
ar
geshar
eoff
act
or
yover
headcosti
snotvol
umebased
B.f
i
r
mspr
oduceadi
ver
semi
xofpr
oduct
C.l
ar
gevol
umesofpr
oduct
i
onoccur
D.Bot
haandbar
ecor
r
ect
.
Oper
at
i
ngLever
age
45.
I
fcompanyAhasahi
gherdegr
eeofoper
at
i
ngl
ever
aget
hancompany
B,t
hen:
A.t
hecompanyAhashi
ghervar
i
abl
eexpenses.
B.t
hecompanyA'
spr
of
i
t
sar
emor
esensi
t
i
vet
oper
cent
agechangesi
n
sal
es.
C.t
hecompanyAi
smor
epr
of
i
t
abl
e.
D.t
hecompanyAi
sl
essr
i
sky.
Act
i
vi
t
ybasedCost
i
ng
25.
Anact
i
vi
t
yt
hathasadi
r
ectcauseef
f
ectr
el
at
i
onshi
pwi
t
ht
her
esour
ces
consumedi
sa(
n)
A.costdr
i
ver
.
C.costpool
.
B.over
headr
at
e.
D.pr
oductact
i
vi
t
y.
27.
Thet
er
m costdr
i
verr
ef
ert
o:
A.anyact
i
vi
t
yt
hatcanbeusedt
opr
edi
ctcostchanges
.
B.t
heat
t
emptt
ocont
r
ol
expendi
t
ur
esatar
easonabl
el
evel
.
C.t
heper
sonwhogat
her
sandt
r
ansf
er
scostdat
at
ot
hemanagement
account
ant
.
D.anyact
i
vi
t
yt
hatcausescost
st
obei
ncur
r
ed.
26.
Eachgr
oupofover
headcost
sshoul
dbeappl
i
edbasedon
A.di
r
ectl
aborhour
sorcost
.
B.uni
t
spr
oduced.
C.what
everact
i
vi
t
ydr
i
vest
hosespeci
f
i
cover
headcost
s.
D.machi
net
i
me.
31
.Whi
choft
hef
ol
l
owi
ngst
at
ement
si
st
r
ue?
A.Thet
r
adi
t
i
onal
appr
oacht
ocost
i
ngusesmanydi
f
f
er
entcostdr
i
ver
s
.
B.Cost
st
hatar
ei
ndi
r
ectt
opr
oduct
sar
ebydef
i
ni
t
i
ont
r
aceabl
et
odi
r
ect
l
y
t
opr
oduct
s.
C.Cost
st
hatar
ei
ndi
r
ectt
opr
oduct
sar
et
r
aceabl
et
osomeact
i
vi
t
y.
D.Al
l
oft
heabovest
at
ement
sar
et
r
ue.
743
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
PROBLEMS:
Tot
al
manuf
act
ur
i
ngcost
s
i
. Di
r
ectmat
er
i
al
sanddi
r
ectl
aborcost
st
ot
alP1
20,
000,conver
si
oncost
s
t
ot
alP1
00,
000,andf
act
or
yover
headcost
st
ot
alP400permachi
nehour
.
I
f1
50 machi
ne hour
s wer
e used f
orJob #201
,whati
st
he t
ot
al
manuf
act
ur
i
ngcostf
orJob#201
?
A.1
20,
000
C.1
80,
000
B.1
60,
000
D.280,
000
admi
ni
st
r
at
i
onexpenseofP1
40,
000f
ort
heyear
.1
,
000uni
t
sofA and
3,
000uni
t
sofBwer
epr
oduced.Ar
equi
r
es3andBr
equi
r
esonemachi
ne
hour
speruni
t
.Ar
equi
r
es6di
r
ectl
aborhour
sandBr
equi
r
es4di
r
ectl
abor
hour
speruni
t
.40% ofover
headi
sr
el
at
edt
ol
aborandt
hebal
ancet
o
machi
nes.Theover
headperuni
tofBamount
st
o
A.P 60
C.P1
56
B.P 68
D.P1
80
vi
.ABC Company had a t
ot
alover
head ofP360,
000 and sel
l
i
ng and
admi
ni
st
r
at
i
onexpenseofP1
40,
000f
ort
heyear
.1
,
000uni
t
sofA and
3,
000uni
t
sofBwer
epr
oduced.Assumi
ngt
hat20% ofal
lover
headar
e
bat
chr
el
at
edf
or1
,
000bat
ches,40% ofwhi
chwasf
orpr
oduci
ngpr
oduct
A,bat
chr
el
at
edover
headf
orpr
oductAperuni
tamount
st
o
A.P20
C.P60
B.P40
D.P80
Over
head
Budget
edover
head
i
i
. Machi
nehour
susedt
osett
hepr
edet
er
mi
nedover
headr
at
ewer
e25,
000,
act
ual
hour
swer
e24,
000,andover
headappl
i
edwasP60,
000.Budget
ed
over
headf
ort
heyearwas
A.P57,
600.
C.P60,
000.
B.P59,
000.
D.P62,
500.
vi
i
.ABC Company had a t
ot
alover
head ofP360,
000 and sel
l
i
ng and
admi
ni
st
r
at
i
onexpenseofP1
40,
000f
ort
heyear
.1
,
000uni
t
sofA and
3,
000 uni
t
sofB wer
e pr
oduced.Assumi
ng t
hat30% ofover
head i
s
pr
oductr
el
at
edover
head-20% ofwhi
chi
sr
el
at
edt
opr
oductA,pr
oduct
r
el
at
edover
headperuni
tofAamount
st
o
A.P30
C.P50
B.P40
D.P60
Over
headperuni
t
i
i
i
.ABC Company had a t
ot
alover
head ofP360,
000 and sel
l
i
ng and
admi
ni
st
r
at
i
veexpens
eofP1
40,
000 f
ort
heyear
.1
,
000 uni
t
sofA and
3,
000 uni
t
sofB wer
e pr
oduced.A r
equi
r
es3 machi
ne hour
sand B
r
equi
r
esonemachi
nehourperuni
t
.Whati
sover
headchar
geabl
eperuni
t
ofA
A.P 60
C.P1
20
B.P 90
D.P1
80
Tot
al
over
headvar
i
ance
vi
i
i
.
CookeCompanyusest
heequat
i
onP450,
000 +P1
.
50 perdi
r
ectl
abor
hourt
obudgetmanuf
act
ur
i
ngover
head.Cookehasbudget
ed1
50,
000
di
r
ectl
aborhour
sf
ort
heyear
.Act
ualr
esul
t
swer
e1
56,
000di
r
ectl
abor
hour
sandP697,
500 t
ot
almanuf
act
ur
i
ng over
head.Thet
ot
alover
head
var
i
ancef
ort
heyeari
s
A.P4,
500f
avor
abl
e.
C.P4,
500unf
avor
abl
e.
B.P1
8,
000f
avor
abl
e.
D.P1
8,
000unf
avor
abl
e.
i
v.ABC Company had a t
ot
alover
head ofP360,
000 and sel
l
i
ng and
admi
ni
st
r
at
i
onexpenseofP1
40,
000f
ort
heyear
.1
,
000uni
t
sofA and
3,
000uni
t
sofBwer
epr
oduced.Ar
equi
r
es3andBr
equi
r
esonemachi
ne
hour
speruni
t
.Ar
equi
r
es6di
r
ectl
aborhour
sandBr
equi
r
es4di
r
ectl
abor
hour
speruni
t
.40% ofover
headi
sr
el
at
edt
ol
aborandt
hebal
ancet
o
machi
nes.Labor
r
el
at
edover
headperhouramount
st
o
A.P 8
C.P1
8
B.P1
2
D.P24
Over
(
under
)
appl
i
edover
head
i
x.I
fest
i
mat
edannualf
act
or
yover
headi
sP800,
000,est
i
mat
edannualdi
r
ect
l
aborhour
sar
e400,
000,act
ualJunef
act
or
yover
headi
sP82,
000,and
v. ABC Company had a t
ot
alover
head ofP360,
000 and sel
l
i
ng and
744
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
act
ual
Junedi
r
ectl
aborhour
sar
e38,
000,t
henover
headi
s:
A.P6,
000over
appl
i
ed
C.P1
,
800under
appl
i
ed
B.P1
,
800over
appl
i
ed
D.P6,
000under
appl
i
ed
A.P1
20,
000
B.P1
44,
000
C.P1
68,
000
D.P1
60,
000
Equi
val
entuni
tofpr
oduct
i
on
xi
i
i
.
TheAssembl
i
ngDepar
t
ment
’
,
000
uni
t
scompl
et
edandt
r
ansf
er
r
edout
,and5,
000uni
t
si
nendi
ngwor
ki
n
pr
ocess60% compl
et
east
omat
er
i
al
sandconver
si
oncost
s.Begi
nni
ng
i
nvent
or
yi
s1
,
000 uni
t
s,40% compl
et
east
omat
er
i
al
sandconver
si
on
cost
s
.Theequi
val
entuni
t
sofpr
oduct
i
onar
e
A.22,
600
C.24,
000
B.23,
000
D.25,
000
Gr
osspr
of
i
t
x. BKYCompanypr
edi
ct
edt
hatf
act
or
yover
headf
or2006and2007woul
d
beP60,
000f
oreachyear
.Thepr
edi
ct
edandact
ualact
i
vi
t
yf
or2006and
2007wer
e30,
000and20,
000di
r
ectl
aborhour
s
,r
espect
i
vel
y.
2006
2007
Sal
esi
nuni
t
s
25,
000
25,
000
Sel
l
i
ngpr
i
ceperuni
t
P1
0
P1
0
Di
r
ectmat
er
i
al
sanddi
r
ectl
aborperuni
t
P5
P5
Thecompanyass
umest
hatt
hel
ongr
unpr
oduct
i
onl
eveli
s20,
000di
r
ect
l
aborhour
speryear
. Theact
ualf
act
or
yover
headcostf
ort
heendof
2006and2007wasP60,
000.Assumet
hati
tt
akesonedi
r
ectl
aborhour
t
omakeonef
i
ni
sheduni
t
.
Whent
heannual
est
i
mat
edf
act
or
yover
headr
at
ei
sused,t
hegr
osspr
of
i
t
s
f
or2006and2007,r
espect
i
vel
y,ar
e
A.P 75,
000andP 75,
000
C.P1
25,
000andP1
25,
000
B.P 75,
000andP 55,
000
D.P 75,
000andP 50,
000
xi
v.
TheAmorCompanyhas2,
000uni
t
si
nbegi
nni
ngwor
ki
npr
ocess,20%
compl
et
east
oconver
si
oncost
s
,23,
000uni
t
st
r
ansf
er
r
edoutt
of
i
ni
shed
goods,and3,
000uni
t
si
nendi
ngwor
ki
npr
ocessonet
hi
r
dcompl
et
east
o
conver
si
oncost
s. Thebegi
nni
ngandendi
ngi
nvent
or
yi
sf
ul
l
ycompl
et
e
ast
omat
er
i
al
scost
s.Equi
val
entuni
t
sf
ormat
er
i
al
sandconver
si
oncost
s
ar
e
A.22,
000and24,
000
C.24,
000and26,
000
B.26,
000and24,
000
D.26,
000and26,
000
Pr
ocesscost
i
ng
Wor
ki
npr
ocess
xi
.Br
i
t
ney Company has uni
tcost
s ofP1
0f
ormat
er
i
al
s and P30 f
or
conver
si
oncost
s.I
ft
her
ear
e2,
500uni
t
si
nendi
ngwor
ki
npr
ocess,40%
compl
et
east
oconver
si
oncost
s
,andf
ul
l
ycompl
et
east
omat
er
i
al
scost
,
t
het
ot
al
costassi
gnabl
et
ot
heendi
ngwor
ki
npr
ocessi
nvent
or
yi
s
A.P 45,
000
C.P 75,
000
B.P 55,
000
D.P1
00,
000
Over
headcomponent
xi
i
.I
nt
heSt
arCompany,t
hepr
edet
er
mi
nedover
headr
at
ei
s80% ofdi
r
ect
l
aborcost
.Dur
i
ngt
hemont
h,P21
0,
000off
act
or
yl
aborcost
sar
ei
ncur
r
ed,
ofwhi
chP1
80,
000i
sdi
r
ectl
aborandP30,
000i
si
ndi
r
ectl
abor
. Act
ual
over
headi
ncur
r
edwasP200,
000. Theamountofover
headdebi
t
edt
o
Wor
ki
nPr
ocessI
nvent
or
yshoul
dbe
745
xv.DodgeCompanyhasami
xi
ngdepar
t
mentandar
ef
i
ni
ngdepar
t
ment
.I
t
s
pr
ocesscost
i
ngsyst
em i
nt
hemi
xi
ngdepar
t
menthast
wodi
r
ectmat
er
i
al
s
costcat
egor
i
es(
mat
er
i
al
Jandmat
er
i
al
P)andoneconver
si
oncost
spool
.
ThecompanyusesFi
r
st
i
n,Fi
r
stoutcostf
l
ow met
hod.Thef
ol
l
owi
ngdat
a
per
t
ai
nt
ot
hemi
xi
ngdepar
t
mentf
orNovember2006
Uni
t
s
Wor
k i
n pr
ocess, November 1
: 50 per
cent
compl
et
ed
1
5,
000
Wor
ki
n pr
ocess,November 30,70 per
cent
25,
000
compl
et
ed
Uni
t
sst
ar
t
ed
60,
000
Compl
et
edandt
r
ansf
er
r
ed
50,
000
Cost
s
Wor
ki
npr
ocess,November1
P21
8,
000
Mat
er
i
al
J
720,
000
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
Mat
er
i
al
P
750,
000
Conver
si
onCost
s
300,
000
Mat
er
i
al
Ji
si
nt
r
oducedatt
hest
ar
tofoper
at
i
onsi
nt
heMi
xi
ngdepar
t
ment
,
andMat
er
i
alPi
saddedwhent
hepr
oducti
st
hr
eef
our
t
hscompl
et
edi
n
t
hemi
xi
ngdepar
t
ment
.Conver
si
oncost
sar
eaddeduni
f
or
ml
ydur
i
ngt
he
pr
ocess.
Ther
espect
i
veequi
val
entuni
t
sf
orMat
er
i
alJandMat
er
i
alPi
nt
hemi
xi
ng
depar
t
mentf
orNovember2006,ar
e
A.Bot
h50,
000uni
t
s
C.75,
000uni
t
sand60,
000uni
t
s
B.60,
000uni
t
sand50,
000uni
t
s D.60,
000uni
t
sand75,
000uni
t
s
Uni
t
st
obeaccount
edf
or
xi
x.
I
nt
he Newman Company,t
her
e ar
e zer
o uni
t
si
n begi
nni
ng wor
ki
n
pr
ocess,7,
000uni
t
sst
ar
t
edi
nt
opr
oduct
i
on,and500uni
t
si
nendi
ngwor
k
i
npr
ocess20% compl
et
ed.Thephysi
cal
uni
t
st
obeaccount
edf
orar
e
A.7,
000
C.7,
600
B.7,
360
D.7,
340
CostofFi
ni
shedGoodsTr
ansf
er
r
ed
xx.Fort
hemont
hofMay,t
hePr
oduct
i
onCont
r
ol
Depar
t
mentofLaMesa,I
nc.
r
epor
t
edt
hef
ol
l
owi
ngpr
oduct
i
ondat
af
orFi
ni
shi
ngDepar
t
ment(
second
depar
t
ment
)
:
Tr
ansf
er
r
edi
nf
r
om Assembl
yDepar
t
ment
75,
000
Tr
ansf
er
r
edoutt
oPackagi
ngDepar
t
ment
59,
250
I
npr
ocessendofMay(
wi
t
h1
/
3l
aborandf
act
or
yover
head)
1
5,
750
Al
lmat
er
i
al
swer
eputi
nt
opr
ocessi
nAssembl
yDepar
t
ment
.TheCost
Account
i
ngDepar
t
mentcol
l
ect
edt
hesef
i
gur
esf
orFi
ni
shi
ngDepar
t
ment
.
Uni
tcostf
oruni
tt
r
ansf
er
r
edi
nf
r
om Assembl
yDepar
t
ment
P
2.
70
Laborcosti
nFi
ni
shi
ngDepar
t
ment
41
,
280.
00
Appl
i
edf
act
or
yover
head
1
1
2.
5% ofl
aborcost
How much was t
he costofFi
ni
shed goods t
r
ansf
er
r
ed outt
ot
he
Packagi
ngDepar
t
ment
?
A,P240,
555
C.P260,
580
B.P 80,
580
D.P1
59,
975
xvi
.
The costofgoods compl
et
ed and t
r
ansf
er
r
ed outt
ot
he Ref
i
ni
ng
depar
t
mentwas
A.P1
,
930,
750
C.P1
,
600,
500
B.P1
,
350,
000
D.P1
,
550,
500
xvi
i
. TheAmorCompany’
f
orApr
i
l2003.Thecompanyaccount
si
t
spr
oduct
i
onusi
ngFi
r
st
i
n,Fi
r
st
outcostf
l
owmet
hod:
Wor
k i
n pr
ocess, Mar
ch 31
,
2003, 60%
compl
et
edast
omat
er
i
al
sandconver
si
on
?uni
t
s
cost
s
Wor
k i
n pr
ocess, Apr
i
l 30, 2003, 30%
compl
et
edast
omat
er
i
al
sandconver
si
on
24,
000uni
t
s
cost
s
Equi
val
entuni
t
sofpr
oduct
i
onf
orApr
i
l
2003
64,
000
Uni
t
ss
t
ar
t
edandcompl
et
edi
nApr
i
l
50,
000
Howmanyuni
t
swer
ei
nt
hebegi
nni
ngwor
ki
npr
ocess?
A. 6,
800
C.1
7,
000
B.1
1
,
333
D.24,
000
Compr
ehensi
ve
Uset
hef
ol
l
owi
ngdat
at
oanswerquest
i
onNos.1
8t
hr
ough20.
Mer
gy Company uses pr
ocess cost
i
ng i
n account
i
ng f
ori
t
s pr
oduct
i
on
depar
t
ment
,whi
chusest
wor
aw mat
er
i
al
s
.Mat
er
i
alAl
phai
spl
acedatt
he
begi
nni
ngoft
hepr
ocess
.I
nspect
i
oni
satt
he85% compl
et
i
onst
age.Mat
er
i
al
Br
avoi
st
henaddedt
ot
hegooduni
t
s
.Nor
mal
spoi
l
ageuni
t
samountt
o5% of
goodout
put
.Thecompanyr
ecor
dscont
ai
nt
hef
ol
l
owi
ngi
nf
or
mat
i
onf
orApr
i
l
:
xvi
i
i
. Hadt
hecompanyusedt
hewei
ght
edaver
agemet
hodofaccount
i
ng
f
ori
t
spr
oduct
i
on,t
heequi
val
entuni
t
sshoul
dbe
A.74,
200
C.81
,
000
B.57,
200
D.53,
800
St
ar
t
eddur
i
ngt
heper
i
od
Mat
er
i
al
Al
pha
Mat
er
i
al
Bet
a
746
20,
000uni
t
s
P26,
800
P22,
500
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
Di
r
ectl
aborcost
P75,
1
60
Fact
or
yover
head
P93,
950
Tr
ansf
er
r
edt
of
i
ni
shedgoods
1
4,
000
Wor
ki
npr
ocess(
95% compl
et
e)
, Apr
i
l 4,
000
30
begi
nni
ngoft
hepr
ocess.Thepr
oducti
si
nspect
edwheni
ti
s90per
cent
conver
t
ed,andspoi
l
agei
si
dent
i
f
i
edonl
yatt
hatpoi
nt
.Nor
malspoi
l
agei
s
expect
edt
obe5% ofgoodout
put
.
The f
ol
l
owi
ng ar
e ext
r
act
ed f
r
om t
he pr
oduct
i
on r
ecor
ds of Lapi
d
Companyf
orMay2003:
Uni
t
sputi
nt
opr
ocess
21
,
000
Uni
t
st
r
ansf
er
r
edt
of
i
ni
shedgoods
1
4,
000
I
npr
ocess,May31
,75% compl
et
e
6,
000
Howmanyar
econsi
der
edabnor
mal
l
ostuni
t
s
?
A.Zer
o
C.1
5
B.300
D.850
xxi
.
How muchwer
eMat
er
i
alcostperequi
val
entuni
tf
orAl
phaand Bet
a,
r
espect
i
vel
y?
A.P1
.
40;P1
.
36
C.P1
.
34;P1
.
06
B.P1
.
40;P1
.
06
D.P1
.
34;P1
.
25
xxi
i
. Theequi
val
entuni
t
sofpr
oduct
i
onf
orMat
er
i
al
Al
phaandBet
aar
e
Al
pha Bet
a
A.1
8,
0001
4,
000
B.1
8,
0001
8,
000
C.20,
000
1
8,
000
D.20,
000
1
4,
000
St
at
ementofCostofGoodsManuf
act
ur
ed&Sol
d
Uset
hef
ol
l
owi
ngi
nf
or
mat
i
ont
hatper
t
ai
nst
obet
amanuf
act
ur
i
ngcompanyt
o
answerquest
i
ons21t
hr
ough23:
Begi
nni
ngdi
r
ectmat
er
i
al
si
nvent
or
y
Begi
nni
ngWI
Pi
nvent
or
y
Begi
nni
ngf
i
ni
shedgoodsi
nvent
or
y
Endi
ngdi
r
ectmat
er
i
al
si
nvent
or
y
Endi
ngWI
Pi
nvent
or
y
Endi
ngf
i
ni
shedgoodsi
nvent
or
y
Pur
chases
Di
r
ectl
abor
Fact
or
yover
head
xxi
i
i
. Thenumberofnor
mal
andabnor
mal
l
ostuni
t
sar
e:
Nor
mal
Abnor
mal
A. 700
1
,
400
B.1
,
400
700
C. 900
1
,
1
00
D.1
,
1
00
900
Mat
er
i
al
cost
Uni
tmat
er
i
al
cost
xxi
v. Cat
r
i
dgeCompanyhasnobegi
nni
ngwor
ki
npr
ocess;9,
000uni
t
sar
e
t
r
ansf
er
r
edoutand3,
000uni
t
si
nendi
ngwor
ki
npr
ocessar
eonet
hi
r
d
f
i
ni
shedast
oconver
si
oncost
sandf
ul
l
ycompl
et
east
omat
er
i
al
scost
.I
f
t
ot
al
mat
er
i
al
scosti
sP60,
000,t
heuni
tmat
er
i
al
scosti
s
A.P5.
00
C.P5.
45
B.P6.
00
D.P5.
35
P 20,
000
20,
000
40,
000
1
0,
000
1
00,
000
50,
000
1
40,
000
1
60,
000
200,
000
xxvi
. Whati
st
heamountofdi
r
ectmat
er
i
al
suseddur
i
ngt
heper
i
od?
A.P1
40,
000
C.P 60,
000
B.P1
30,
000
D.P1
50,
000
xxvi
i
. Whati
st
heamountofcostofgoodsmanuf
act
ur
eddur
i
ngt
heper
i
od?
A.P430,
000
C.P470,
000
B.P420,
000
D.P51
0,
000
Lostuni
t
s
xxv. Lapi
dCompanyusespr
ocesscost
i
ng.Al
lmat
er
i
al
sar
eaddedatt
he
xxvi
i
i
.Whati
st
heamountofcostofgoodssol
ddur
i
ngt
heper
i
od?
A.P430,
000
C.P470,
000
747
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
B.P420,
000
D.P51
0,
000
i
. Answer
:C
Di
r
ectmat
er
i
al
sanddi
r
ectl
abor
Fact
or
yover
headP400x1
50
Tot
al
manuf
act
ur
i
ngcost
i
i
. Answer
:D
Over
headr
at
eperhour
P2.
50
Budget
edover
head (
25,
000xP2.
50)
vi
.Answer
:B
Bat
chr
el
at
edcost
s
:(
360,
000+1
40,
000)×20%
P1
00,
000
Bat
chr
el
at
edcost
s
,Pr
oductA:1
00,
000×40%
40,
000
Bat
chr
el
at
edover
headperuni
tofPr
oductA:40,
000/1
,
000 P 40
I
n ABC cost
i
ng,t
her
ei
s no need t
o make a di
st
i
nct
i
on bet
ween
manuf
act
ur
i
ng andnonmanuf
act
ur
i
ng cost
si
ncomput
i
ng t
her
el
evant
pr
oductcost
s
P1
20,
000
60,
000
P1
80,
000
vi
iAnswer
:A
Pr
oduct
r
el
at
edover
headcost (
360,
000+1
40,
000)×30%
P1
50,
000
Pr
oduct
r
el
at
edover
headcost
,Pr
oductA:1
50,
000×20%
P
30,
000
Pr
oduct
r
el
at
edover
headcostperuni
t
,Pr
oductA:30,
000/1
,
000 P 30
(
P60,
000÷24,
000)
i
i
i
.Answer
:D
Tot
al
numberofhour
s
:(
1
,
000x3)+(
3,
000x1
)
Over
headcostperhour(
P360,
000÷6,
000)
Over
headchar
gedperuni
tofpr
oductA:3hr
s.xP60
P62,
500
6,
000
P 60
P1
80
vi
i
i
.
Answer
:A
Var
i
abl
eover
head
P1
.
50
Pr
edet
er
mi
nedf
i
xedover
head
(
P450,
000÷1
50,
000)
3.
00
Tot
al
over
headr
at
e
P4.
50
Act
ual
over
head
P697,
500
Appl
i
edover
head
(
1
56,
000hour
sxP4.
50)
702,
000
Tot
al
over
headvar
i
ance,f
avor
abl
e
P 4,
500
i
v.Answer
:A
Labor
r
el
at
edover
head:(
P360,
000x0.
40)
P1
44,
000
Tot
al
numberofl
aborhour
s
:(
1
,
000x6)+(
3,
000x4)
1
8,
000
Labor
r
el
at
edover
headperDLH:(
P1
44,
000÷1
8,
000)
P8
v. Answer
:B
Machi
ner
el
at
edover
head:(
P360,
000x0.
6)
Tot
al
numberofmachi
nehour
s(
1
,
000x3)+3,
000
Machi
ner
el
at
edOHperMH:(
P21
6,
000÷6,
000)
Over
headappl
i
edperuni
tofPr
oductB:
Labor
r
el
at
ed(
4hour
sxP8)
Machi
ner
el
at
ed(
1xP36)
Over
headperuni
t
P21
6,
000
6,
000
P36
i
x.Answer
:D
Appl
i
edover
head
Act
ual
over
head
Under
appl
i
edover
head
P32
36
P68
38,
000xP2
Over
headr
at
eperdi
r
ectl
aborhour
P2.
00
x. Answer
:B
Gr
ossPr
of
i
t
:
2006:(
25,
000x1
0)-1
75,
000 =P75,
000
Theover
headi
sbr
okendowni
nt
ot
wovol
umebasedcostpool
s.Thi
si
s
amor
emodi
f
i
edex
ampl
eoft
r
adi
t
i
onal
cost
i
ng
748
P76,
000
82,
000
P6,
000
(
P800,
000÷400,
000)
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
2007:(
25,
000x1
0)-1
95,
000=P55,
000
Over
headappl
i
cat
i
onr
at
es:
2006:60,
000/
30,
000=P2.
00
2007:60,
000/
20,
000=P3.
00
Compl
et
eduni
t
s
WI
P-End
Wei
ght
edAver
age
EUP
Uni
tCost
s:
2006:5+2 = P7.
00
2007:5+3 = P8.
00
% of
EUP
Compl
et
i
on
1
00
23,
000
1
00
3,
000
26,
000
xv.Answer
:B
Comput
at
i
onofequi
val
entuni
t
s
Cost
sofgoodssol
d:
2006:25,
000xP7
P1
75,
000
2007:(
5,
000xP7)+(
20,
000xP8)
P1
95,
000
Not
e:I
n2007t
hecompanyhasabegi
nni
ngi
nvent
or
yof5,
000uni
t
sat
uni
tcostofP7.
xi
.Answer
:B
Mat
er
i
al
scost(
2,
500xP1
0)
Conver
si
oncost(
2,
500x0.
4xP30)
Tot
al
cost
sofWor
ki
nPr
ocess
Wor
ki
npr
ocess,Nov.1
Uni
t
ss
t
ar
t
edandcompl
et
ed
Wor
ki
npr
ocess,Nov.30
EUP
xvi
.
Answer
:C
Wor
ki
npr
ocessbegi
nni
ng
Cost
,Nov.1
Cost
,November
Mat
er
i
al
P(
1
5,
000xP5)
Conver
si
on7,
500xP5
St
ar
t
ed,
compl
et
ed
35,
000P32
Costofgoodst
r
ansf
er
r
ed
out
Uni
tCost
s
Mat
er
i
al
J
Mat
er
i
al
P
Conver
si
oncost
s
Tot
al
P25,
000
30,
000
P55,
000
xi
i
.Answer
:B
Theamountofover
headappl
i
edt
opr
oduct
i
onshoul
dbe80per
centof
di
r
ectl
aborcost(
P1
80,
000x0.
80)=P1
44,
000
xi
i
i
.
Answer
:B
Compl
et
eduni
t
s
20,
000
Wor
ki
npr
ocess,End (
5,
000x0.
6)3,
000
Tot
al
equi
val
entuni
t
s,aver
age23,
000
xi
v.
Answer
:B
Uni
t
scompl
et
edandt
r
ansf
er
r
edout
Wor
ki
nPr
ocess,End
Mat
er
i
al
s
23,
000
3,
000
Mat
er
i
al
J
35,
000
25,
000
60,
000
749
Mat
er
i
al
P
1
5,
000
35,
000
50,
000
P21
8,
000
225,
000
37,
500
262,500 P 480,
500
1
,
1
20,
000
P1
.
600,
500
720,
000/
60,
000
750,
000/
50,
000
300,
000/
60,
000
xvi
i
. Answer
:C
Equi
val
entuni
t
sf
orApr
i
l
Less:EU – st
ar
t
ed and compl
et
ed
dur
i
ng:
Conver
si
onCost
s
% of
EUP
Compl
et
i
on
1
00.
00
23,
000
33.
33
1
,
000
24,
000
P1
2
1
5
5
P32
64,
000
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
Apr
i
l
Wor
ki
npr
ocess,end
(
24,
000x3)
Equi
val
entuni
t
s -wor
ki
npr
ocess
endMar31
Numberofuni
t
si
npr
ocessasof
Mar
ch31
6,
80040
50,
000
7,
200
Abnor
mal
l
ostuni
t
Tot
al
Uni
tcost
Al
phaP26,
80020,
000=P1
.
34
Bet
aP22,
5001
8,
000=P1
.
25
57,
200
6,
800
1
7,
000
xvi
i
i
. Answer
:A
Equi
val
entuni
t
s–FI
FO
Addequi
val
entuni
t
si
nMar
ch31(
1
7,
000x.
6)
Wei
ght
edAver
ageEUP
xxi
i
. Answer
:C
Equi
val
entuni
t
s
Tr
ansf
er
r
edt
oF.
G.
EndPr
ocess
Nor
mal
l
ostuni
t
s
Abnor
mal
l
ostuni
t
Tot
al
64,
000
1
0,
200
74,
200
xi
x.
Answer
:A
Thenumberofuni
t
st
obeaccount
edshoul
dbet
hesum oft
heuni
t
si
n
begi
nni
ngwor
ki
npr
ocessandt
henumberofuni
t
st
hathavebeenst
ar
t
ed
dur
i
ngt
heper
i
od
xx.Answer
:A
EUP:
Tr
ansf
er
r
edoutt
oPackagi
ngDept
.
I
npr
ocess,end1
5,
750x1
/
3
Tot
al
Uni
tCost
:
Tr
ansf
er
r
edi
n
Laborandover
head 87,
720/
64,
500
Tot
al
Costoff
i
ni
shedgoodst
r
ansf
er
r
edout59,
250x4.
06
xxi
.
Answer
:D
Equi
val
entuni
t
s
Tr
ansf
er
r
edt
oF.
G.
EndPr
ocess
Nor
mal
l
ostuni
t
s
Al
pha
1
4,
000
4,
000
900
1
,
1
00
20,
000
0
1
8,
000
Al
pha
1
4,
000
4,
000
900
1
,
1
00
20,
000
Bet
a
1
4,
000
4,
000
______
1
8,
000
xxi
i
i
. Answer
:C
Tot
al
l
ostuni
t
s(
20,
000–1
8,
000)
Tot
al
l
ostuni
t
s5% x1
8,
000
Abnor
mal
l
ostuni
t
s
xxi
v. Answer
:A
Compl
et
edandt
r
ansf
er
r
edout
Uni
t
si
nwor
ki
npr
ocess,End (
3,
000x1
00%)
Equi
val
ent
suni
t
sofpr
oduct
i
on-Mat
er
i
al
s
Mat
er
i
al
scostperEUP (
P60,
000÷1
2,
000)
59,
250
5,
250
64,
500
2.
70
1
.
36
4.
06
P240,
555
xxv. Answer
:B
Tot
al
l
ostuni
t
s(
21
,
000–20,
000)
Lessnor
mal
l
ostuni
t
s5% of1
4,
000
Abnor
mal
l
ostuni
t
xxvi
. Answer
:D
Begi
nni
ngmat
er
i
al
si
nvent
or
y
AddMat
er
i
al
sPur
chased
Tot
al
costofmat
er
i
al
savai
l
abl
ef
oruse
DeductMat
er
i
al
si
nvent
or
y,End
Bet
a
1
4,
000
4,
000
0
750
2,
000
900
1
,
1
00
9,
000
3,
000
1
2,
000
P5.
00
1
,
000
700
300
P 20,
000
1
40,
000
1
60,
000
1
0,
000
CostAccount
i
ngSyst
ems
(
A.Tr
adi
t
i
onal
CostAccount
i
ng)
Costofmat
er
i
al
sused
P1
50,
000
xxvi
i
. Answer
:A
Di
r
ectmat
er
i
al
sused
Di
r
ectl
abor
Over
head
Tot
al
manuf
act
ur
i
ngcost
s
AddWor
ki
npr
ocess,begi
nni
ng
Tot
al
cost
spl
acedi
npr
ocess
DeductWor
ki
npr
ocess,end
Costofgoodsmanuf
act
ur
ed
P1
50,
000
1
60,
000
200,
000
51
0,
000
20,
000
530,
000
1
00,
000
P430,
000
xxvi
i
i
.Answer
:B
Costofgoodsmanuf
act
ur
ed
Addf
i
ni
shedgoodsi
nvent
or
y,begi
nni
ng
Tot
al
costofgoodsavai
l
abl
ef
orsal
e
Deductf
i
ni
shedgoodsi
nvent
or
y,end
Costofgoodssol
d
P430,
000
40,
000
470,
000
50,
000
P420,
000
751