COST ACCTG. & CONTROL/ INTERMEDIATE 1&2

What costing system is used to avoid any delay in the costing of jobs as experienced in actual costing?

• a. Process costing

• b. Job order costing

• c. Historical costing

• d. Normal costing

Costing system that charge the product with thw use of an arbitrary overhead application rate determined at the en of the period;

• a. Normal costing

• b. Actual costing

• c. Job order costing

• d. Process costing

What costing system is used to allocate overhead with the use a predetermined overhead rate determined at the beginning of the year based on budgets.

• a. Normal costing

• b. Actual costing

• c. Job order costing

• d. Process costing

A credit balance in manufacturing overhead control account is;

• a. overapplied overhead

• b. Underapplied overhead

• c. Idle capacity variance

• d. Spending variance

A debit balance in the manufacturing overhead control account is;

• a. Overapplied overhead

• b. Underapplied overhead

• c. Idle capacity variance

• d. Spending variance

The person who is responsible for the protection of the materials in the storeroom, and for identification of the materials is the;

• a. Receiving clerk

• b. Purchasing agent

• c. Storeroom supervisor

• d. Storeroom Clerk

No materials may be issued without a written document called the;

• a. Material requisition

• b. Materials issued

• c. Material ledger card

• d. Receiving report

Last month, Reyes' Company placed P60,000 of materials into production. The Printing Department used 8,000 labor hours at P5.60 per hour and the Binding Department used 4,600 hours at P6.00 per hour. Factory overhead is applied at a rate of P6.00 per labor hour in the Printing Department and P8.00 per labor hour in the Binding Department. Reyes' inventory accounts show the following balances:

Finish goods= beg. P22,000/end. P17,000

Work in process= beg. P15,000/end. P17,600

Materials= beg. P20,000/end. P18,000

What is the cost of goods sold at normal costing?

• a. P219,600

• b. P214,600

• c. P108,000

• d. P217,200

In a well controlled materials system, the Purchasing Agent performs the following activities except the;

• a. placing of purchase orders with suppliers

• b. receiving of purchase requisitions

• c. approving and checking of invoices

• d. preparation of purchase order

Which of the following is correct about soft assets?

• a. They can lose their value at anytime

• b. An example is a patent

• c. They are intangible

• d. All of the above