This document contains multiple cost classification and cost analysis problems. It provides information on classifying different costs as direct materials, direct labor, factory overhead, administrative, selling, product or period costs. It also contains high-low estimation problems to calculate variable costs, fixed costs, and estimated costs at different production levels. Multiple cost sheet problems are presented to calculate costs of goods manufactured, raw materials purchased, factory costs, sales and net income under different markups.
This document contains multiple cost classification and cost analysis problems. It provides information on classifying different costs as direct materials, direct labor, factory overhead, administrative, selling, product or period costs. It also contains high-low estimation problems to calculate variable costs, fixed costs, and estimated costs at different production levels. Multiple cost sheet problems are presented to calculate costs of goods manufactured, raw materials purchased, factory costs, sales and net income under different markups.
This document contains multiple cost classification and cost analysis problems. It provides information on classifying different costs as direct materials, direct labor, factory overhead, administrative, selling, product or period costs. It also contains high-low estimation problems to calculate variable costs, fixed costs, and estimated costs at different production levels. Multiple cost sheet problems are presented to calculate costs of goods manufactured, raw materials purchased, factory costs, sales and net income under different markups.
This document contains multiple cost classification and cost analysis problems. It provides information on classifying different costs as direct materials, direct labor, factory overhead, administrative, selling, product or period costs. It also contains high-low estimation problems to calculate variable costs, fixed costs, and estimated costs at different production levels. Multiple cost sheet problems are presented to calculate costs of goods manufactured, raw materials purchased, factory costs, sales and net income under different markups.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 3
Cost classification: Classify the following as direct materials (DM), direct labor (DL), factory overhead (FOH), administrative
(AD) and selling (SE) expense by putting a check on the appropriate column.
DM DL FOH AD SE 1. Wages of company officials other the plant supervisor. 2. Wages of finished goods inventory warehouse man. 3. Transportation and representation allowance plant managers and Supervisors. 4. Transportation and representation allowance of sales managers. 5. Wood glue and other related adhesives used by furniture factories. 6. Buttons, threads and zippers used by ready to wear manufacturing Company. 7. Lubricating oil used by factories in their operations. 8. Gas and oil used by the company president. 9. Electric and power consumption of the administrative office. 10. Electric and power consumption of factory companies. 11. Depreciation of delivery truck of a manufacturing company Used in delivering finished goods to customers. 12. Cloth used by a ready to wear factory. 13. Cost of daily advertisements in local newspaper regarding new Product line. 14. Cost of renting a private helicopter to fly along the grandstand Pulling a banner advertising a new product. 15. Cost of dishes broken by restaurant servers.
Cost classification: classify each cost as product cost or period cost by putting a check mark on the appropriate column. If an item is not appropriate to be product or period cost, write N/A to both columns.
Product Cost Period Cost
1. Depreciation of plant and machineries. 2. Depreciation of service vehicles used by sales managers. 3. Depreciation of office machineries and equipment. 4. Paper and toner used for the office copier machine. 5. Bond paper used by a legal office. 6. Paper and plastic bags used by supermarkets. 7. Bonuses paid to factory workers for an efficient performance. 8. Transportation cost of goods delivered to customers. 9. Cost of medical supplies for the emergency ward of a hospital. 10. Transportation expenses of a production manager in attending skills Training workshop. 11. Costs of good served to a valued client of a company. 12. Gas and oil consumed by plant machineries. 13. Cost of newspaper ads for the announcement of a new office location. 14. Salaries, compensations and other benefits paid to the Human Resource Manager. Separating Mixed Cost Machine hours and electricity costs for Hernani Industries for 2018 were as follows: Month Machine Hours Utility Costs January 2,500 P 36,800 February 2,900 42,000 March 1,900 27,000 April 3,100 46,000 May 3,800 56,500 June 3,300 44,000 July 4,100 49,500 August 3,500 45,500 September 2,000 31,000 October 3,700 52,000 November 4,700 62,000 December 4,200 55,500
How much is the variable cost per unit?
a. P12.5 per unit. b. P15 per unit. c. P12.5 per machine hour. d. P15 per machine hour.
How much is the fixed cost?
a. P3,250 b. P2,350 c. P5,350 d. P5,230
Using the High-Low method, the estimated utility cost at 2,500 machine hours is: ________
The following information was available about supplies cost for the first four months of the year:
Month Production Supplies Cost
January 2,800 P 9,500 February 6,400 28,400 March 2,400 10,800 April 6,300 30,100 Using high-low method, the estimated supplies cost at 5,000 units of production is: a. P44,000 b.P44,240 c. P22,240 d. P44,640
The following information has taken from the cost records of T Co. for the past year: Raw materials used in the production P 326,000 Prime Costs for the period 551,000 Conversion cost for the period 360,000 (OH applied is equal to 60% of direct labor) Cost of goods available for sale 826,000 Selling and administrative expenses 25,000 Inventories Beginning Ending Raw materials P 75,000 P 85,000 Work in Process 80,000 30,000 Finished Goods 90,000 110,000
The cost of raw material purchased amounted to:
a. P316,000 b. P336,000 c. P360,000 d. P411,000 The total factory cost for the period amount to: a. P911,000 b. P551,000 c. P686,000 d. P767,000
If mark up is 20% based on sales, how much be the sales?
a. P895,000 b. P859,200 c. P800,100 d. P716,000
If mark up is 20% based on cost, how much is the net income?
a. P154,000 b. P118,200 c. P143,200 d. P116,200
The following data are available about the X Company:
2016 2017 2018 Beginning Materials Inventory P 100,000 ? P 120,000 Ending Materials Inventory 150,000 ? 110,000 Beginning Work in Process Inventory 300,000 ? 180,000 Ending Work In Process Inventory 240,000 ? 210,000 Direct labor P 200,000 Manufacturing Overhead 400,000 Materials Purchases 300,000
