UNIVERSAL COLLEGE OF PARAÑAQUE

FINAL EXAM John Bo S. Cayetano CPA,MBA

1) Department 2 had put 95,000 units into process during the period and had beginning units in process of
21,000 units. What is the number of units transferred to finished goods inventory if Department 2’s
ending units in process are 12,000?
A. 104,000
B. 83,000
C. 74,000
D. 62,000

2) Department 2 of Charity Manufacturing Company presents the following production data for the month
of May 2021:

Opening inventory, 3/8 completed 4,000 units Started in process 13,000 units Transferred out
9,000 units Closing inventory:
1/2 completed 4,000 units 3/4 completed 4,000 units

What are the equivalent units of production for the month of May 2021?
FIFO method Average method
A. 12,500 units 13,000 units
B. 17,000 units 12,500 units
C. 12,500 units 14,000 units
D. 15,000 units 14,000 units

3) Walden Company has a process cost system. All materials are introduced at the beginning of the
process in Department One. The following information is available for the month of January 2021:

Work-in-process, 1/1/21 (40% complete as to conversion cost) 500

Started in January 2,000

Transferred to Department Two during January 2,100

Work-in-process, 1/31/21 (25% complete as to conversion cost) 400

What are the equivalent units of production for the month of January 2021 as to conversion cost?
FIFO method Average method
A. 2,200 2,000
B. 1,900 1,900
C. 2,200 2,200
D. 2,000 2,200

4) Department A is the first stage of Mann Company’s production cycle. The following information is
available for conversion costs for the month of April 2021:

Work-in-process, 4/1/21 (60% complete) 20,000

 Started in April 340,000

Completed in April and transferred to Department B 320,000

Work-in-process, 4/31/21 (40% complete) 40,000

The equivalent units for the conversion cost calculation are:

FIFO method Average method
A. 324,000 324,000
B. 336,000 336,000
C. 336,000 324,000
D. 324,000 336,000

5) Bart Company adds materials at the end of the process in Department M. the following information
pertains to Department M’s work-in-process during April:

Work-in-process, 4/1/21 (60% complete) 3,000

Started in April 25,000

Completed 20,000

Work-in-process, 4/31/21 (75% complete) 40,000

What is the equivalent units of production for the month of April as to conversion cost?

FIFO method Average method

A. 28,000 28,000
B. 20,000 26,000
C. 24,200 26,000
D. 20,000 20,000

6) Sues Company’s production cycle starts in the Mixing Department. The following information is available
for April:

Work-in-process, 4/1 (50% complete) 40,000

Started in April 240,000

Work-in-process, 4/31 (60% complete) 25,000

What is the equivalent units of production for the month of April?

FIFO method Average method
A. 250,000 270,000
B. 280,000 280,000
C. 280,000 280,000
D. 270,000 270,000
7) Red Company had 6,000 units in process at the beginning of the month in Department 1. During the
month an additional 14,000 units were placed in process. If Red Company had 4,200 units in process
at the end of the month, what is the number of units transferred to department 2 (completed as to
department 1), assuming all units completed in Department 1 are transferred to Department 2?
A. 15,800
B. 18,200
C. 20,000
D. 24,200

8) The cost of materials put into production in a department during the month totaled P188,400. By the end
of the month, these materials had been used for 32,000 units, of which 29,000 were completed and
transferred out and 3,000 were in process. 80% of materials were added to the units in process. What
is the equivalent unit production for materials?
A. 31,400
B. 32,000
C. 29,600
D. 31,000

9) Blue Corporation’s production starts in Department 1. The following data is available for April:

Units work in process, April 1 (50% complete) 40,000

Units started in April 240,000

Units work in process, April 30 (60% complete) 25,000

Materials are added at the beginning of the process in Department 1. Using the average cost method,
what are the equivalent units of production for the month of April?
Materials Conversion cost
A. 255,000 255,000
B. 270,000 280,000
C. 280,000 270,000
D. 305,000 275,000

10) Green Company adds materials at the beginning of the process in Department 1. The following data
pertains to Department 1’s work in process during April:

Units WIP on April 1 (60% complete as to conversion cost) 3,000

Units started in April 25,000

Units completed in April 20,000

Units WIP on April 30 (75% complete as to conversion cost) 8,000

Under the average costing method, the equivalent units for conversion cost is
A. 26,000
B. 25,000
C. 24,000
 D. 21,800

11) The Assembly Department started the month with 24,000 units in its beginning work in process
inventory. An additional 309,000 units were transferred in from the prior department during the month
to begin processing in the Assembly Department. There were 29,000 units in the ending work in
process inventory of the Assembly Department.

How many units were transferred to the next processing department during the month?
A. 333,000
B. 362,000
C. 304,000
D. 314,000

12) Hush brown Company started 9,000 units in October. The company transferred out 7,000 finished units
and ended the period with 3,500 units that were 40 percent complete as to both materials and
conversion costs.

Beginning work in process inventory units were

A. 500
B. 600
C. 1,500
D. 2,000

13) Lalaban Company had 3,000 units in work in process at April 1 that were 60% complete as to
conversion cost. During April, 10,000 units were completed. At April 30, the 4,000 units in work in
process were 40% complete as to conversion cost. Direct materials are added at the beginning of the
process

How many units were started during April?

A. 9,000
B. 9,800
C. 10,000
D. 11,000

14) Walang bibitaw Company had beginning work in process inventory of 5,000 units that were 40 percent
complete as to conversion costs. Andrea started and completed 42,000 units this period and had
ending work in process inventory of 12,000.

How many units were started this period?

A. 54,000
B. 59,000
C. 42,000
D. 47,000

15) Pangarap Company transferred 5,500 units to Finished Goods Inventory during June. On June 1, the
company had 300 units on hand (40 percent complete as to both materials and conversion cost). On
June 30, the company had 800 units (10 percent complete as to material and 20 percent complete as
to conversion costs).

The number of units started and completed during June was

A. 5,200
B. 5,380
C. 5,500
D. 6,300

Use the following information for the next two (2) questions:
Zeze manufacturer at the end of its fiscal year recorded the data below:
Prime cost P800,000
Variable manufacturing overhead 100,000
Fixed manufacturing overhead 160,000
Variable selling and other expenses 80,000
Fixed selling and other expenses 40,000
16. ) If the manufacturer uses variable costing, the inventoriable costs for the fiscal year are:
A. 800,000
B. 900,000
C. 980,000
D. 1,060,000

17. ) Using absorption (full) costing, inventoriable costs are

A. 800,000
B. 900,000
C. 1,060,000
D. 1,080,000

18) The Rainbow Company had the following costs for 2021:
Raw materials P 700,000
Direct labor 100,000
Miscellaneous FOH (fixed) 80,000
Depreciation of machines 40,000
Rent for factory building 50,000
Rent for sales office 30,000
Depreciation on store equipment 20,000
How much of these costs should be inventoried under absorption and variable costing methods?
Absorption Costing Variable Costing
A. P1,020,000 P880,000
B. P1,000,000 P880,000
C. P 970,000 P800,000
D. P 930,000 P800,000

19.) MD Santos Corporation’s 2021 manufacturing costs were as follows:

Prime cost P 560,000 Variable manufacturing overhead costs 80,000 Straight line depreciation of
factory building and equipment 60,000 Factory supervisor’s salary (P8,000 per month) 96,000 Other
fixed factory overhead 40,000
What amount should be considered product cost for external reporting purposes?
 A. 680,000
B. 196,000
C. 640,000
D. 836,000

20) Redillas Corporation’s 2021 manufacturing costs were as follows:

Prime costs P 400,000 Straight line depreciation of factory equipment 60,000 Straight line depreciation
of factory building 40,000 Janitor’s salaries for cleaning factory premises 12,000 Salesmen’s
commission based on sales 20,000 Straight line depreciation for delivery van 15,000
How much of these costs should be inventoried for external reporting purposes?
A. 512,000
B. 400,000
C. 547,000
D. 412,000
Use the following information for the next five (5) questions:

Hottie Inc. is employing normal coting for its job orders. The overhead is applied using
predetermined overhead rate. The following information relates to the Hottie Inc. for the year ended
December 31, 2025:

Job No. 01 Job No. 02 Job No. 03

Job in process, January 1, 2025:
Direct materials 40,000 30,000 0
Labor 60,000 40,000 0
Factory overhead 30,000 20,000 0

Costs added during 2025:

Materials 20,000 10,000 100,000
Labor 100,000 200,000 400,000
Factory overhead ? ? ?

Additional information:
(a) Actual overhead for the year 2025 amounted to P350,000;

(b) Jobs No. 01 and 02 were completed and transferred to finished goods during the year 2025;
(c) Job No. 01 was sold during the year 2025;
(d) The gross profit rate is 20% based on cost.
21) What is the total manufacturing cost for 2025?
A. 1,400,000 B. 1,180,000 C. 480,000 D. 1,200,000

22) What is the cost of goods manufactured for 2025?

A. 680,000 B. 700,000 C. 580,000 D. 780,000

23) What is the cost of goods sold for 2025?

A. 1,180,000 B. 300,000 C. 700,000 D. 1,200,000

24) What is the gross profit for 2025?

A. 236,000 B. 60,000 C. 140,000 D. 240,000

25) What is the cost of work in process on December 31, 2025?

A. 800,000 B. 700,000 C. 600,000 D. 900,000