Job Order Quiz

Problem 1
Wayne company uses a job costing system and applies overhead to jobs using a
predetermined overhead rate based on direct labor-hours. The company had the following
inventories at the beginning and end of March:
March 1 March 31
Direct Materials....... P36,000 P30,000
Work in Process........ 18,000 12,000
Finished Goods......... 54,000 72,000
The following additional data pertain to operations during March:
Direct materials purchased... P84,000

Direct labor cost............ P60,000
Direct labor rate............ P7.50 per direct labor-hour
Overhead rate................ P10.00 per direct labor-hour
1. During March total debits to Work in Process were:

a. P84,000.
b. P220,000.
c. P144,000.
d. P230,000.
2. The Cost of Goods Manufactured for March was:

a. P212,000.
b. P218,000.
c. P230,000.
d. P236,000.
Problem 2
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 .................. P4,000

Direct labor ...................... P2,000
Applied manufacturing overhead ... P3,000
· Jobs 102, 103, and 104 were started during February.

· Direct materials requisitions for February totaled P26,000.
· Direct labor cost of P20,000 was incurred for February.
· Actual manufacturing overhead was P32,000 for February.
· The only job still in process at February 28 was Job 104, with costs of
P2,800 for direct materials and P1,800 for direct labor.
3. The cost of goods manufactured for February was:
a. P77,700.
b. P78,000.
c. P79,700.
d. P85,000.
4. For the month of February, the manufacturing overhead was:

a. P700 overapplied.
b. P1,000 overapplied.
c. P2,000 overapplied.
d. P2,000 underapplied.
Problem 3
Meyers Company had the following inventory balances at the beginning and end of
November:
November 1 November 30
Raw Materials ...... P17,000 P20,000
Finished Goods ..... P50,000 P44,000
Work in Process .... P 9,000 P11,000
During November, P39,000 in raw materials (all direct materials) were drawn from inventory
and used in production. The company's predetermined overhead rate was P8 per direct labor-
hour, and it paid its direct labor workers P10 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 P4,700 of direct materials cost. The
Company incurred P28,000 of actual manufacturing overhead cost during the month and
applied P26,400 in manufacturing overhead cost.
5. The raw materials purchased during November totaled:

a. P42,000.
b. P45,000.
c. P36,000.
d. P39,000.
6. The direct materials cost in the November 1 Work in Process inventory

account totaled:
a. P6,600.
b. P6,000.
c. P3,600.
d. P3,000.
7. 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.
8. The amount of direct labor cost in the November 30 Work in Process inventory
was:
a. P2,800.
b. P3,300.
c. P3,500.
d. P6,300.
Problem 4
Mallet Company has only Job 844 in process on March 1 of the current year. The job has been
charged with P2,000 of direct material cost, P2,500 of direct labor cost, and P1,750 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 ..................... P29,500
Used in production ............................. P30,500
Labor:
Direct labor hours worked during the month ..... 2,500
Direct labor cost incurred ..................... P26,500
Indirect labor costs incurred .................. P5,500
Manufacturing overhead costs incurred (total) .. P18,500
Inventories:
Raw materials (all direct) March 31 ............ P7,500
Work in process, March 31 ...................... P14,500
Work in process inventory contains P5,500 of direct labor cost.

9. The amount of direct materials cost in the March 31 work in process inventory
account was:
a. P5,150.
b. P9,350.
c. P9,000.
d. P3,850.
10. The cost of goods manufactured for March was:

a. P67,300
b. P67,250
c. P81,800
d. P75,550
11. The entry to dispose of the under- or overapplied overhead cost for the month
would include:
a. a debit of P50 to Cost of Goods Sold.
b. a debit of P50 to Manufacturing Overhead.
c. a debit of P5,500 to Manufacturing Overhead.
d. a credit of P5,500 to Cost of Goods Sold.
12. The balance in the March 1 in the Raw Materials inventory was:
a. P10,500.
b. P9,500.
c. P6,500.
d. P8,500.
Problem 5
The Milo Company's records for May contained the following information:
Actual direct labor-hours ....... 9,000 hours

Actual direct labor cost ........ P 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 P5.00 per direct labor hour to apply
manufacturing overhead to jobs.
13. The actual overhead cost incurred during the month was:
a. P50,000.
b. P55,000.
c. P40,000.
d. P45,000.
14. The total cost added to Work in Process during May was:
a. P101,000.
b. P106,000.
c. P61,000.
d. P111,000.
15. Sharp Company's records show that overhead was overapplied by P10,000 last year.
This overapplied overhead was closed out to the Cost of Goods Sold account at the end
of the year. In trying to determine why overhead was overapplied by such a large
amount, the company has discovered that P6,000 of depreciation on factory equipment
was charged to administrative expense in error. Given the above information, which of
the following statements is true?
a. Manufacturing overhead was actually overapplied by P16,000 for the year.
b. The company's net income is understated by P6,000 for the year.
c. Under the circumstances posed above, the error in recording depreciation would have
no effect on net income for the year.
d. The P6,000 in depreciation should have been charged to Work in Process rather than to
administrative expense.

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Problem 1

The following additional data pertain to operations during March:

Direct materials purchased... P84,000

1. During March total debits to Work in Process were:

2. The Cost of Goods Manufactured for March was:

Direct materials .................. P4,000

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

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

5. The raw materials purchased during November totaled:

6. The direct materials cost in the November 1 Work in Process inventory

Raw materials (all direct materials):

Manufacturing overhead costs incurred (total) .. P18,500

Work in process inventory contains P5,500 of direct labor cost.

10. The cost of goods manufactured for March was:

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

a. Manufacturing overhead was actually overapplied by P16,000 for the year.

b. The company's net income is understated by P6,000 for the year.

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