1.

In a manufacturing environment, the job order cost system and job order costs system differ in the way
a. Costs are assigned to production runs and the number of units for which units which costs are averaged
b. orders are taken and the number of units in the order
c. product profitability is determined and compared with planned costs
d. processes can be accomplished and the number of production runs that may be performed
2. Which of the following best describes direct labor?
a. prime costs b. period costs c. product costs d. Both a and c
3. There are several alternative denominator measures for applying overhead. Which is not commonly used?
a. direct labor hours c. direct labor costs
b. machine hours d. sales value of product produced
4. When the amount of overapplied factor overhead is significant, the entry to close overapplied factory overhead would
most likely require
a. debit to costs of goods sold
b. debits to costs of goods sold, finished goods inventory, and work in process inventory
c. credit to costs of goods sold
d. credits to costs of goods sold, finished goods inventory and work in process inventory
5. Under job order costs accumulation, the factory overhead control account controls:
a. factory overhead analysis sheet c. job order costs sheets
b. costs reports by processes d. material inventories
6. Supplies needed for use in the factory re issued on the basis of
a. job costs sheets c. materials requisition
b. time tickets d. factory overhead analysis sheets
7. In traditional job order costs system, the issuance of supplies to a production department increases
a. stores control c. work in process control
b. factory overhead control d. factory overhead applied
8. the Waitkins Company estimated department A’s overhead at P255,000 for the period based on the estimated volume of
100,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance
of P265,500; actual direct labor hours were P105,000. What was the over or underapplied overhead for the period?

9. C Company applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and
overhead for the year are as follows:
Budget Actual
Direct labor hours 600,000 650,000
Factory overhead cost P720,000 P760,000
How much is the under or over applied for the year is?

10. At the end of the fiscal year, B Company had the following account balances:
Overapplied overhead 6,000
Costs of goods sold 980,000
Work in process 38,000
Finished goods 82,000
If the amount of the overapplied overhead is material, what would be the balance of costs of goods sold?

11. C products has no work in process or finished goods inventories at the close of business on Decemebr 31. The
balances of C’s account as of Decemebr 31 are as follows:
Cost of goods sold P 2,040,000
Selling and Administrative Expenses 900,000
Sales 3,600,000
Factory overhead control 700,000
Factory overhead applied 648,000
C’s pretax income for the year is?

12. Q Company is a print shop, which produces jobs to customer specifications. During January, Job # 123 was worked on
and the following information is available
Direct materials used P 2,500
Direct labor hours worked 15
Machine time used 16
Direct labor rate per hour 7
Overhead application rate per machine hour P 18

What was the total costs of Job # 123 for January?

13. Katherine Company manufactures special machines according to customer’s specifications. The following data were
available at the beginning and ending of April:
Beginning Ending
Materials Inventory 34,000 32,400
Work in Process Inventory 16,240 7,200
Finished Goods Inventory 6,000 8,000
During April, direct material costing 40,000 were purchased, direct labor costs totalled 33,000, and factory overhead was
17,160. What is the costs of goods manufactured for the month of April?
14. The following information are available to you:
Increase in direct materials inventory P45,000
Decrease in work-in-process inventory P12,800
Decrease in finished goods inventory P65,000
Direct materials purchased during the period amounts to P176,900. Direct labor consists of 1,000 direct labor hours at P54
per hour. Factory overhead is applied at a quarter of the direct labor.
How much is the costs of goods sold after adjusting with the over application or under application of overhead?

15. The following information are presented to you:

Accounts Payable, March 1 P12,000
Work in Process, March 1 P60,000
Finished Goods, March 1 P100,000
Materials, March 31 P20,000
Accounts Payable, March 31 P30,000
Actual factory overhead P300,000
Costs of goods sold P600,000
Payment of accounts payable 77,000
Factory overhead is applied at 150% of direct labor costs. Jobs still in process on March 31 have been charged P12,000
for materials and P24,000 for direct labor (3,000 hours). Actual direct labor hours, P20,000 at P8 per hour.
How much is the costs of material purchased?