Reference no: EM132944340
Questions -
Q1. Dolor Company's records for the year ended December 31 show that no finished goods inventory existed at January 1 and no work was in process at the beginning or end of the year.
Other data are as follows:
Net sales P1,400,000
Cost of goods manufactured
Variable P 630,000
Fixed 315,000
Operating expenses:
Variable P 98,000
Fixed 140,000
Units manufactured 70,000 units
Units sold 60,000 units
What is Dolor's finished goods inventory cost at December 31 under the absorption costing method?
a. P90,000
b. P104,000
c. P105,000
d. P135,000
Q2. Mauro Company's records for the year ended December 31 show that no finished goods inventory existed at January 1 and no work was in process at the beginning or end of the year.
Other data are as follows:
Net sales P1,400,000
Cost of goods manufactured
Variable P630,000
Fixed 315,000
Operating expenses:
Variable P98,000
Fixed 140,000
Units manufactured 70,000 units
Units sold 60,000 units
Under the variable costing method, Mauro's operating income for the year is:
a. P217,000
b. P307,000
c. P352,000
d. P762,000
Q3. Baste Coat Company estimates that 60,000 special zippers will be used in the manufacture of men's jackets during the next year. Gio Zipper Company has quoted a price of P.60 per zipper. Baste would prefer to purchase 5,000 units per month, but Gio is unable to guarantee this delivery schedule. To ensure availability of these zippers, Baste is considering the purchase of all 60,000 units at the beginning of the year. Assuming Baste can invest cash at 8%, the company's opportunity cost of purchasing the 60,000 units at the beginning of the year is
a. P1,320
b. P1,440
c. P2,640
d. P2,880
Q4. Information on Ken's direct labor costs for the month of January is as follows:
Actual direct labor rate P7.50
Standard direct labor hours allowed 11,000
Actual direct labor hours 10,000
Direct labor rate variance-favorable P5,500
The standard direct labor rate in January was
a. P6.95
b. P7.00
c. P8.00
d. P8.05
Q5. Bartolome Company uses a standard cost system. The following information pertains to direct labor for Product B for the month of October:
Standards hours allowed for actual production 2,000
Actual rate paid per hour P 8.40
Standard rate per hour P 8.00
Labor efficiency variance P1,600 U
What were the actual hours worked?
a. 1,800
b. 1,810
c. 2,190
d. 2,200