Introduction to cost accounting

Based on historical transaction data.

• Financial Accounting

• Managerial Accounting

• Cost Accounting

• Job Order Costing

The sum of Total Manufacturing Cost and work in process, beginning equals:

• Cost of goods sold

• Cost of goods available for sale

• Cost of goods manufactured

• Cost of goods placed in process

Statement 1: The traditional role of cost accounting is to record full product cost data for external reporting.

Statement 2: Direct materials plus factory overhead equals total manufacturing costs

• True; True

• True; False

• False; True

• False; False

Statement 1: Process costing is applicable to same or similar goods

Statement 2: Process costing is used by companies that make large number of similar products

• True; True

• True; False

• False; True

• False; False

Statement 1: In job order costing, unit costs are computed by dividing the individual department’s costs by the equivalent production

Statement 2: In process costing, unit costs are determined by dividing the total costs on the job sheet by the number of units on the job

• True; True

• True; False

• False; True

• False; False

J & L Company incurred the following costs:

Direct materials P215,000

Conversion costs 435,000

Manufacturing overhead 190,000

Selling and Admin expenses 185,000

What is J & L prime costs?

• P460,000

• P410,000

• P405,000

• P375,000

J & L Company incurred the following costs:

Direct materials P215,000

Conversion costs 435,000

Manufacturing overhead 190,000

Selling and Admin expenses 185,000

J & L total manufacturing costs is?

• P460,000

• P645,000

• P650,000

• P840,000

J & L Company incurred the following costs:

Direct materials P215,000

Conversion costs 435,000

Manufacturing overhead 190,000

Selling and Administrative expenses 185,000

What is J & L total period costs?

• P185,000

• P275,000

• P400,000

• P620,000

Jyhan Inc produces and sells milk flavored bubble gum. Over the last five months, Jyhan had the following production costs and production volume.

Month Cost Volume (in cases)

March P6,000 12

April 6,659 14

May 8,370 18

June 8,800 19

July 8,050 17

Using the high-low method, what is the fixed cost per month for bubble gum production?

• P400

• P1,200

• P4,800

• P7,600

Jyhan Inc produces and sells milk flavored bubble gum. Over the last five months, Jyhan had the following production costs and production volume.

Month Cost Volume (in cases)

March P6,000 12

April 6,659 14

May 8,370 18

June 8,800 19

July 8,050 17

The variable cost per case is

• P400

• P600

• P1,200

• P2,800