QUIZ – JOB ORDER COSTING LOU V.

FOJA, CPA

Name ______________________________________________ Score _______ Rating _________

Direction: Write the letter of your answer in the space before each number.

Items 1 and 2 relate to the following:

The Tse Manufacturing Company uses a job-order costing system and applies overhead to jobs using a
predetermined overhead rate. The company closes any balance in the Manufacturing Overhead account
to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited
for ₱ 125,000 and credited for ₱ 110,000. The ending balance in the Finished Goods inventory
account was ₱ 28,000. At the end of the year, manufacturing overhead was overapplied by ₱ 4,500.

1. The balance in the Finished Goods inventory account at the beginning of the year was:
a. ₱ 28,000. b. ₱ 13,000. c. ₱ 17,500. d. ₱ 8,500.

2. If the estimated manufacturing overhead for the year was ₱ 24,000, and the applied overhead
was ₱ 26,500, the actual manufacturing overhead cost for the year was:
a. ₱ 19,500. b. ₱ 22,000. c. ₱ 28,500. d. ₱ 31,000.

Items 3 and 4 relate to the following:

Summit Company has provided the following inventory balances and manufacturing cost data for the
month of January:

Inventories: January 1 January 31

Direct materials ....... ₱30,000 ₱40,000
Work in process ........ ₱15,000 ₱20,000
Finished goods ......... ₱65,000 ₱50,000

Month of January
Cost of goods manufactured ........ ₱515,000
Manufacturing overhead applied .... ₱150,000
Direct materials used ............. ₱190,000
Actual manufacturing overhead ..... ₱144,000

Under Summit's job-order costing system, any over or underapplied overhead is closed to the Cost of
Goods Sold account at the end of the calendar year (i.e., December 31).

3. What was the total amount of direct material purchases during January?
a. ₱180,000 b. ₱190,000 c. ₱195,000 d. ₱200,000

4. How much direct labor cost was incurred during January?

a. ₱170,000 b. ₱175,000 c. ₱180,000 d. ₱186,000

Items 5 to 7 relate to the following:

The Bus Company uses a job-order cost system. The following information was recorded for September:

Added During September

September 1 Direct Direct
Job Number Inventory Materials Labor
1 ₱1,000 ₱ 300 ₱200
2 1,400 250 300
3 500 1,500 150
4 750 4,000 400

The direct labor wage rate is P10 per hour. Overhead is applied at the rate of P5 per direct labor-
hour. Jobs 1, 2, and 3 have been completed and transferred to finished goods. Job 2 has been
delivered to the customer.

5. The ending Work in Process inventory is:

a. ₱7,575. b. ₱5,350. c. ₱4,325. d. ₱5,150.

6. The Cost of Goods Manufactured for September is:

a. ₱10,750. b. ₱11,275. c. ₱5,925. d. ₱7,625.

7. The Cost of Goods Sold for September (before disposition of any under- or overapplied
overhead) is:
a. ₱2,100. b. ₱5,925. c. ₱3,700. d. ₱1,950.
QUIZ – JOB ORDER COSTING LOU V. FOJA, CPA

Items 8 to 10 relate to the following:

The following data are for Potras Company:

Beginning Ending
Finished goods inventory ............ ₱30,000 ₱40,000
Work in process inventory ........... ₱20,000 ₱13,000
Raw materials inventory ............. ₱21,000 ₱26,000
Purchases of raw materials .......... ₱71,000
Factory depreciation ................ ₱ 5,000
Other factory costs ................. ₱10,000
Direct labor ........................ ₱27,000
Indirect labor ...................... ₱ 6,000
Selling expense ..................... ₱12,000
Over- or underapplied overhead ...... -0-

8. The cost of raw materials used in production was:

a. ₱26,000. b. ₱71,000. c. ₱76,000. d. ₱66,000.

9. The cost of goods manufactured was:

a. ₱114,000. b. ₱133,000. c. ₱121,000. d. ₱138,000.

10. The cost of goods sold was:

a. ₱131,000. b. ₱91,000. c. ₱81,000. d. ₱111,000.

Items 11 to 12 relate to the following:

The information below has been taken from the cost records of Tercel Company for the past year:

Raw materials used in production ......................... ₱326,000

Total manufacturing costs charged to jobs during
the year (includes raw materials, direct labor, and
manufacturing overhead applied at the rate of 60 per
cent of direct labor cost) ............................. 686,000
Cost of goods available for sale ......................... 826,000
Selling and administrative expenses ...................... 25,000

Inventories
Beginning Ending
Raw Materials ............. ₱75,000 ₱ 85,000
Work in Process ........... 80,000 30,000
Finished Goods ............ 90,000 110,000

11. The cost of raw materials purchased during the year amounted to:
a. ₱411,000. b. ₱360,000. c. ₱316,000. d. ₱336,000.

12. Direct labor costs charged to production during the year amounted to:
a. ₱135,000. b. ₱225,000. c. ₱360,000. d. ₱216,000.

Items 13 to 14 relate to the following:

The Milo Company's records for May contained the following information:

Actual direct labor-hours ....... 9,000 hours

Actual direct labor cost ........ ₱ 47,000
Direct material purchased ....... 16,000
Direct material used ............ 14,000
Cost of goods sold .............. 100,000
Overapplied overhead ............ 5,000
Ending inventories:
Raw materials ................. 30,000
Work in process ............... 50,000
Finished goods ................ 70,000

The company uses a predetermined overhead rate of ₱5.00 per direct labor hour to apply
manufacturing overhead to jobs.

13. The actual overhead cost incurred during the month was:
a. ₱50,000. b. ₱55,000. c. ₱40,000. d. ₱45,000.
QUIZ – JOB ORDER COSTING LOU V. FOJA, CPA

14. The total cost added to Work in Process during May was:
a. ₱101,000. b. ₱106,000. c. ₱61,000. d. ₱111,000.

Items 15 to 18 relate to the following:

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged
with ₱2,000 of direct material cost, ₱2,500 of direct labor cost, and ₱1,750 of manufacturing
overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct
labor cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of
the month.

During March, the following activity and amounts were recorded by the company:

Raw materials (all direct materials):

Purchased during the month ..................... ₱29,500
Used in production ............................. ₱30,500

Labor:
Direct labor hours worked during the month ..... 2,500
Direct labor cost incurred ..................... ₱26,500
Indirect labor costs incurred .................. ₱5,500

Manufacturing overhead costs incurred (total) .. ₱18,500

Inventories:
Raw materials (all direct) March 31 ............ ₱7,500
Work in process, March 31 ...................... ₱14,500

Work in process inventory contains ₱5,500 of direct labor cost.

15. The amount of direct materials cost in the March 31 work in process inventory account was:
a. ₱5,150. b. ₱9,350. c. ₱9,000. d. ₱3,850.

16. The cost of goods manufactured for March was:

a. ₱67,300 b. ₱67,250 c. ₱81,800 d. ₱75,550

17. The entry to dispose of the under- or overapplied overhead cost for the month would include:
a. a debit of ₱50 to Cost of Goods Sold. c. a debit of ₱5,500 to Manufacturing Overhead.
b. a debit of ₱50 to Manufacturing Overhead. d. a credit of ₱5,500 to Cost of Goods Sold.

18. The balance in the March 1 in the Raw Materials inventory was:
a. ₱10,500. b. ₱9,500. c. ₱6,500. d. ₱8,500.

Items 19 to 22 relate to the following:

Meyers Company had the following inventory balances at the beginning and end of November:

November 1 November 30
Raw Materials ...... ₱17,000 ₱20,000
Finished Goods ..... ₱50,000 ₱44,000
Work in Process .... ₱ 9,000 ₱11,000

During November, ₱39,000 in raw materials (all direct materials) were drawn from inventory and used
in production. The company's predetermined overhead rate was ₱8 per direct labor-hour, and it paid
its direct labor workers ₱10 per hour. A total of 300 hours of direct labor time had been expended
on the jobs in the beginning Work in Process inventory account. The ending Work in Process
inventory account contained ₱4,700 of direct materials cost. The Company incurred ₱28,000 of actual
manufacturing overhead cost during the month and applied ₱26,400 in manufacturing overhead cost.

19. The raw materials purchased during November totaled:

a. ₱42,000. b. ₱45,000. c. ₱36,000. d. ₱39,000.

20. The direct materials cost in the November 1 Work in Process inventory account totaled:
a. ₱6,600. b. ₱6,000. c. ₱3,600. d. ₱3,000.

21. The actual direct labor hours worked during November totaled:
a. 2,800 hours. b. 3,300 hours. c. 3,500 hours. d. 3,600 hours.

22. The amount of direct labor cost in the November 30 Work in Process inventory was:
a. ₱2,800. b. ₱3,300. c. ₱3,500. d. ₱6,300.
QUIZ – JOB ORDER COSTING LOU V. FOJA, CPA

Items 23 to 24 relate to the following:

Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined
rate of 150% of direct labor cost. Any over- or underapplied manufacturing overhead is closed to
the Cost of Goods Sold account at the end of each month. Additional information is available as
follows:

 Job 101 was the only job in process at January 31. The job cost sheet for this job contained
the following costs at the beginning of the month:

Direct materials .................. ₱4,000

Direct labor ...................... ₱2,000
Applied manufacturing overhead .... ₱3,000

 Jobs 102, 103, and 104 were started during February.

 Direct materials requisitions for February totaled ₱26,000.
 Direct labor cost of ₱20,000 was incurred for February.
 Actual manufacturing overhead was ₱32,000 for February.
 The only job still in process at February 28 was Job 104, with costs of ₱2,800 for direct
materials and ₱1,800 for direct labor.

23. The cost of goods manufactured for February was:

a. ₱77,700. b. ₱78,000. c. ₱79,700. d. ₱85,000.

24. For the month of February, the manufacturing overhead was:

a. ₱700 overapplied. c. ₱2,000 overapplied.
b. ₱1,000 overapplied. d. ₱2,000 underapplied.

25. Sweet Company applies overhead to jobs on the basis of 125% of direct labor cost. If Job 107
shows ₱10,000 of manufacturing overhead applied, how much was the direct labor cost on the
job?

a. ₱8,000 b. ₱12,500 c. ₱11,250 d. ₱10,000

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