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COST ACCOUNTING QUESTIONS (DIFFICULTY: EASY)
1
The following costs are for Fidel Manufacturing, a manufacturer of labels used in the packaging of a variety of products. Classify the costs as one of the four options by placing the letter of the best answer in the space provided.
A Direct materials costB Direct labor costC Manufacturing overhead costD Selling and administrative cost
1. Ink used in printing labels.2. Salary of the corporate controller.3. Depreciation on the factory overhead.4. Rent on finished goods warehouse.5. Paper for labels.6. Wages paid to machine operator.7. Insurance on manufacturing facilities.8. Income tax expense.9. Cost of electricity to operate factory machinery.10. Boxes used to ship finished labels.11. Advertising.12. Salespersons’ commissions.13. Vacation pay for factory employees.14. Salary of production foreman.15. Depreciation on delivery truck.
2Anaconda Manufacturing had no beginning inventories. During the period, its completed production was 50,000 units of which 10% was unsold. There were no ending inventories of materials or work-in-process. Materials purchased and used were P215,000; direct labor and manufacturing overhead were P160,000.
Required: Compute for the ending inventory and cost of goods sold
3The following data were taken from Sexy Back Company for 200A:
Raw materials purchased 300,000Direct labor payroll 150,000Indirect labor 50,000Taxes and Depreciation –
Factory building 25,000Taxes and Depreciation –
Salesroom and office 20,000Salesmen’s salaries 40,000Office salaries 30,000Utilities(60% factory) 50,000Freight-out 30,000Increase in raw materials inventory 15,000Decrease in goods-in-process inventory 10,000Decrease in finished goods inventory 25,000
1. What is the cost of goods sold?a. P550,000b. P575,000c. P525,000d. P595,000
2. What is the total manufacturing cost?a. P550,000b. P540,000c. P560,000d. P570,000
3. What is the cost of goods manufactured?a. P540,000b. P565,000c. P550,000d. P575,000