Professional Documents
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ACTIVITY BASED COSTING & ACCOUNTING FOR JOINT PRODUCTS & BY-
PRODUCTS
a. Reporting
b. Decision making
c. Control
d. Planning
a. Currently attainable
b. Normal
c. Theoretical
d. Practical
a. Quality control
b. Engineering
c. Purchasing
d. Production
7.By-products
a. Controlling costs
b. Setting the selling price of the product
c. Determining whether to continue producing an item
d. Determining inventory costs for accounting purposes
a. Historical costs
b. Joint costs
c. Sunk costs
d. Avoidable costs
I. Prime cost
a. I, II and III
b. I and II only
c. I and III only
d. II and III only
a. Extraordinary item
b. Period cost
c. Product cost
d. Deferred charge
20. The following are methods for allocating joint costs, except:
March 1, 2016
Direct Materials purchased P36,000
Direct labor payroll 18,000
Direct labor rate per hour 7.50
Factory overhead rate per direct
labor hour 10.00
a. P212,000 c. P230,000
b. P218,000 d. P236,000
For the Month of May 2016, what amount if direct labor should Joy
charge to work-in-process?
a. P325,000 c. P350,000
b. P335,000 d. P360,000
23. GO MELJUN uses a job order cost system and applies factory
overhead to production orders on the basis of direct-labor cost.
The overhead rates for 2016 are 200% for department A and 50% for
department B. Job 123, started and completed during 2016 as
charged with the following costs:
DEPARTMENT
A B
Direct materials P 25,000 P 5,000
Direct labor ? 30,000
Factory overhead 40,000 ?
a. P135,000 c. P195,000
b. P180,000 d. P240,000
31. What were the actual hours worked in this department during
this quarter?
a. 110,000 c. 137,000
b. 121,000 d. 153,000
32. What were the standard hours allowed for good output in this
department?
a. 105,000 c. 110,000
b. 106,667 d. 115,000
a. P600,000
b. P768,000
c. P832,000
d. P960,000
a. P640,000
b. P768,000
c. P832,000
d. P1,000,000
37. B. Mijo Co. which began operations in 2016, produces gasoline
and a gasoline by-prooduct. The following information is
available pertaining to 216 sales and production:
Gasoline By-Product
a. P105,000 P25,000
b. P105,000 P30,000
c. P108,000 P37,000
d. P100,000 P0
a. P40,000 c. P45,000
b. P42,000 d. P60,000
Assuming the total joint cost of P60,000 were allocated using the
physical measures (units produced), what were the total costs
allocated to its product JJ?
a. P27,000 c. P33,000
b. P29,000 d. P39,000
a. P27,000 c. P28,350
b. P28,000 d. P32,200
41. Vane Corporation, which manufactures two products out of a
joint process Compad and Ultrasene. The joint (common) costs
incurred are P250,000 for a standard production run that
generates 120,000 gallons of Compad and 80,000 gallons of
Ultrasene. Compad sells for P2.00 per gallon while Ultrasene
sells for P3.25 per gallon.
a. P100,000 c. P130,000
b. P120,000 d. P150,000
a. P100,000 c. P130,000
b. P120,000 d. P150,000
a. P100,000 c. P142,500
b. P148,000 d. P150,000
a. P100,000 c. P142,500
b. P107,500 d. P150,000
a. 20 days c. 15 days
b. 14 days d. 17 days
a. 15 % c. .214285%
b. 21.43% d. .15%
47. What is the total delivery cycle time?
a. 20 days c. 15 days
b. 14 days d. 17 days
49. BILL GATES & GREMLIN INC. year-end manufacturing costs were
as follows:
a. P625,000 c. P585,000
b. 610,000 d. 500,000
The accounting records for 2016 of Eva Co. showed the following:
50. The cost of raw materials used for the period amounted to
a. P1,245,000 c. P1,335,000
b. P1,290,000 d. P1,380,000