For the year 2011, the gross margin of Jumbo Co.

was P96,000; the Items 6 and 8 are based on the following data of Matatag Company for
cost of goods manufactured was P340,000; the beginning inventories the month of March 2011:
of work in process and finished goods were P28,000 and P45,000,
respectively; and the ending inventories of work in process and March 1 March 31
finished goods were P38,000 and P52,000, respectively. Materials 40,000 50,000
Work in process 25,000 35,000
1. The sales of Jumbo Co. for 2011, must have been Finished goods 60,000 70,000
a. P 419,000
b. P 429,000 March 1 to 31, 2011
c. P 434,000 Direct labor cost 120,000
d. P 436,000 Factory overhead applied 108,000
Cost of goods sold 378,000
The following information was taken from Jeric Companys
accounting records for the year ended December 31, 2011. 6. The total amount of direct materials purchased during March was:
Increase in raw materials inventory P 15,000 a. 50,000
Decrease in finished goods inventory P 35,000 b. 170,000
Raw materials purchased P 430,000 c. 180,000
Direct labor payroll P 200,000 d. 220,000
Factory overhead P 300,000
7. The cost of goods manufactured during March 2011 was:
2. There was no work-in-process inventory at the beginning or end of a. 378,000
the year. Jerics 2011 cost of goods sold is b. 388,000
a. P 950,000 c. 398,000
b. P 965,000 d. 428,000
c. P 975,000
d. P 995,000 Some selected sales and cost data for Alcid Manufacturing Campany
are given below:
Items 3 through 5 are based on the following information pertaining to Direct materials used 100,000
Glenn Companys manufacturing operations. Direct labor 150,000
Inventories 3/1/11 3/31/11 Factory overhead (40% variable) 75,000
Direct materials P 36,000 P 30,000 Selling and administrative expenses
Work-in-process P 18,000 P 12,000 (50% direct, 60% variable) 120,000
Finished goods P 54,000 P 72,000
8. Prime cost was:
Additional information for the month of March 2011 a. 175,000
Direct materials purchased 84,000 b. 250,000
Direct labor payroll 60,000 c. 130,000
Direct labor rate per hour 7.50 d. 225,000
Factory overhead rate/direct labor hour 10.00
9. Conversion cost was:
3. For the month of March 2011, prime cost was a. 150,000
a. 90,000 b. 225,000
b. 120,000 c. 250,000
c. 144,000 d. 270,000
d. 150,000
10. Direct cost was:
4. For the month of March 2011, conversion cost was a. 225,000
a. 90,000 b. 250,000
b. 140,000 c. 310,000
c. 144,000 d. 325,000
d. 170,000
11. Indirect cost was:
5. For the month of March 2011, cost of goods manufactures was a. 75,000
a. 218,000 b. 135,000
b. 224,000 c. 195,000
c. 230,000 d. 325,000
d. 236,000
12. Product cost was: During the month of January, F Co.s direct labor cost totaled P36,000
a. 135,000 and direct labor cost was 60% of prime cost.
b. 250,000
c. 325,000 18. If total mfg. costs during January were P85,000, the factory
d. 370,000 overhead was:
a. 24,000
13. Variable cost was: b. 25,000
a. 250,000 c. 49,000
b. 280,000 d. 60,000
c. 352,000
d. 370,000 During 2011, there was no change in the beginning or ending balance
in the materials inventory account for the DL Co. however, the WP
During 2011, there was no change on either the raw material or the inventory account increased by P15,000 and the FG inventory account
work in process beginning and ending inventories. However, finished decreased by P10,000.
goods, which had a beginning balance of P 25,000, increased by
15,000. 19. if purchased of raw materials were P100,000 for the year, direct
labor costs was P150,000 and manufacturing overhead costs was
14. If the manufacturing costs incurred totaled 600,000 during 2011, P200,000, the costs of goods sold for the year would be:
the goods available for sale must have been: a. 435,000
a. 585,000 b. 445,000
b. 600,000 c. 465,000
c. 610,000 d. 475,000
d. 625,000
During the month of March, 2004. Nape Co. used P300,000 of direct
During the month of May 2011, Candid Manufacturing Co. incurred P materials. At March 31, 2011, Napes direct materials inventory was
30,000, P 40,000 and P 20,000 of direct material, direct labor and P50,000 more than it was at march 1, 2004.
factory overhead costs respectively.
20. Direct materials purchases during the month of March 2011
15. If the cost of goods manufactured was P 95,000 in total and the amounted to:
ending work in process inventory was P 15,000, the beginning a. 0
inventory of work in process must have been b. 250,000
a. 10,000 c. 300,000
b. 20,000 d. 350,000
c. 110,000
d. 25,000 21. Calculate the manufacturing overhead incurred for F&B Co.

The Lion Companys cost of goods manufactured was P 120,000 when Direct labor cost incurred 250
its sales were P 360,000 and its gross margin was P 220,000. Direct materials used 110
Beginning work in process 50
16. If the ending inventory of finished goods was P 30,000, the Ending work in process 300
beginning inventory of finished goods must have been: Finished goods completed 170
a. 10,000
b. 50,000 a. 60
c. 130,000 b. 410
d. 150,000 c. 560
d. 580
The gross margin for Cruise Company for 2011 was P325,000 when
sales were P700,000. The FG inventory was P60,000 and the FG 22. Determine the sales for the year.
inventory, end was P35,000. Gross profit 280,000
Ending inventory 120,000
17. The costs of goods manufactured were: Goods available for sale 180,000
a. 300,000
b. 350,000 a. 300,000
c. 230,000 b. 340,000
d. 375,000 c. 400,000
d. 460,000
Given the following information: Arizona Manufacturing Company reported the following year-end
Finished goods beginning 26,000 information
Finished goods ending 37,000
Cost of goods manufactured 127,000 Work in process inventory, January 1 180,000
Raw materials inventory, January 1 50,000
23. What is the cost of goods sold? Work in process inventory, December 31 150,000
a. 115,500 Raw materials inventory, December 31 80,000
b. 138,500 Raw materials purchased 160,000
c. 153,000 Direct labor 150,000
d. 190,500 Factory overhead applied 100,000
Factory overhead control 120,000
Uniflo Manufacturing Company developed the following data for the
current year. 28. Cost of goods manufactured for the year is
Work in process inventory, January 1 40,000 a. 380,000
Direct materials used 24,000 b. 410,000
Actual factory overhead 48,000 c. 350,000
Applied factory overhead 36,000 d. 440,000
Cost of goods manufactured 44,000
Total manufacturing costs 120,000 Alabama Corporation reported the following for the year. WP
inventory, beg. P90,000; cost of goods manufactured P258,000: FG
24. Uniflo Companys direct labor cost for the year is inventory, beg. P126,000; WP inventory, end P110,000; FG
a. 12,000 inventory, end P132,000
b. 60,000
c. 36,000 29. Cost of goods sold for Alabama Corp. during the year
d. 48,000 a. 252,000
b. 264,000
25. Uniflo Companys work in process inventory, December 31 is c. 232,000
a. 116,000 d. 126,000
b. 80,000
c. 76,000 30. Total manufacturing costs for Alabama Corp.
d. 36,000 a. 278,000
b. 368,000
The following data relate to Maxine Manufacturing Company for the c. 298,000
period: d. 238,000
Direct labor 2,400
Factory overhead 1700
Work in process inventory, beginning 11,000
Work in process inventory, end 5,000
Cost of goods manufactured 16,000
Sales 50,000
Finished goods inventory, beginning 9,000
Finished goods inventory, end 8,000
Total selling, general and administrative costs 14,000

26. The amount of direct materials put into production during the
period
a. 6,700
b. 5,600
c. 4,800
d. 5,900

27. The amount of increased in retained earnings during the period