INSTRUCTIONS. Use the provided answer sheet and write the CAPITAL letter of your best choice.

This drill is good for

45 minutes. Good Luck!
Lucas Co. adds materials in the beginning of the process in the Forming Dept., which is the first of two stages of its
production cycle. Information converting the materials used in the Forming Dept. in October are as follows:
Units
Costs
Work in process, Oct.1
6,000
P3,000
Units started in October
50,000
25,560
Units comp. & transf. to next dept.
44,000
1.

Using the weighted-average method, what was the materials cost of work in process at October 31?
a. P3,000
c. P5,250
b. P6,000
d. P6,120

On April 1, the Collins Co. had 6,000 units of work in Dept. B, the second and last stage of their production cycle. The
costs attached to these 6,000 units were P12,000 of costs transferred in from Dept. A, P2,500 of material cost added in
Dept. B and P2,000 of conversion cost added in Dept. B. Materials are added in the beginning of the process in Dept. B.
Conversion was 50% complete on April 1. During April, 14,000 units were transferred in from Dept. A at a cost of
P27,000 and materials costs of P3,500 and conversion costs of P3,000 were added in Dept. B. On April 30, Dept. B had
5,000 units in work in process 60% complete as to conversion costs. The costs attached to these 5,000 units were
P10,500 of costs transferred in from Dept. A, P1,800 of material costs added in Dept. B and P800 of conversion costs
added in Dept. B.
2. Using the weighted average method, the equivalent units for the month of April were:
Transf.-in from
Dept. A
Materials
Conversion
a. 15,000
15,000
15,000
b. 19,000
19,000
20,000
c. 20,000
20,000
18,000
d. 25,000
25,000
20,000
3.

Using the weighted average method, what was the cost per equivalent unit for conversion costs?
a. P4,200/15,000
c. P5,800/18,000
b. P5,800/20,000
d. P5,000/18,000

Sangley, Inc. manufactures a product which goes through three consecutive processes, Process 1, Process 2, and Process
3. Data for the month of September, 2006 are as follows:
Work in Process,
beg.
Materials added
Conversion costs
Closing work in
process

4.

PROCESS1

PROCESS2

PROCESS3

P8,000
20,000
10,000

P13,000
4,000
10,000

P2,000
5,000
16,000

9,000

4,000

6,000

What was the value of the output transferred from Process 3 to the finished goods warehouse for the month of
September?
a. P63,000
c. P67,000
b. P65,000
d. P69,000

Ten-ten Company produces a small standard component in a process operation. There is a quality control check at the
end of the processing. Items which fail this check are sold off as scrap for P1.80 per unit. The expected rate of rejection
is 10%. Normal loss is not given a cost except that whatever scrap value it has is credited to the process account. The
cost/value of the abnormal loss or gain, net of scrap, is written off to the profit and loss account.
Data for July are as follows:
Materials input
Conversion cost
Output to finished goods

5.

1,000 units
800 units

P5,100
P3,000

What was the full cost of the finished output that passed the quality control check?
a. P7,040
c. P7,200
b. P7,920
d. P8,100

From the following data, question 16 to 18 should be answered.

Opening inventory

Percentage of
Completion
100%
50%
50%

Materials
Labor
Overhead
Put in process
Materials value
Labor
Overhead is 100% of labor cost
Units completed and transferred
Units in process at the end
Materials
100%
Labor and overhead
60%

6.

The equivalent production for material is

Under Average
Under FIFO
a.
24,000
20,000
b.
20,000
21,000
c.
20,000
24,000

4,000 units
Value
P1,992
1,074
846
20,000 units
P12,000
9,984
21,000 units
3,000 units

d.

21,000

20,000

7.

The equivalent production labor and overhead is

a.
21,000
20,000
b.
24,000
22,000
c.
22,800
20,800
d.
21,000
21,000

8.

The total cost of the work in process at the end is

a.
3,577
3,500
b.
3,477
3,528
c.
3,528
3,477
d.
3,500
3,577

Complete the following process account of Lei Manufacturing Company by supplying the peso amounts of (A)
and (B) on the credit side of the account.
May 1
6,000 units

Process Y
P4,800

1/3 completed
May 1-31
Mat. 12,000 @ P0.50

6,000

Labor
Overhead

3,600
5,400

9.

May 1-31
16,000 units
completed (A)
May 31
2,000
unitscompleted

The peso amount of the 16,000 units completed (A) is

a. P17,800
c. P17,600
b. P18,200
d. P16,400

10. The peso amount of the 2,000 units completed (B) is

a. P2,200
c. P2,000
b.
P1,600
d. P1,400
done submit your answer sheet, thank you!

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