Reference no: EM132971252

Questions -

Q1) The Integrity Manufactures toys for the Big Boys. One order from Mr. Job for 2,000 units showed the following costs per unit:

Direct materials: P3.50

Direct labor: 1.25

Manufacturing overhead at 140% of direct labor cost is defective work is charged to the job, 150% if it is not. Final inspection revealed that 100 of the units were improperly manufactured. These units were disassembled and properly manufactured. The per unit cost of correcting the defective products consists of P0.15 for materials, P0.25 for direct labor, and manufacturing overhead at the predetermined rate.

What is the cost per unit produced, assuming that the rework costs is charged to the customer, Mr. Job?

a. P6.5375

b. P6.5385

c. P6.6250

d. P7.250

Q2) The accounting department of Coffee Company provided the following data for 2020:

Sales: 144,000

Marketing expenses: 7,200

Administrative expenses: 1,440

Other operating expenses: 720

Purchases: ???

Factory overhead: 20,000

Direct labor: 30,000

Cost of goods sold: 100,600

Inventory accounts:

Finished goods inventory, Jan. 1: 14,000

Finished goods inventory, Dec. 31: 20,400

Work in process inventory, Jan. 1: 16,000

Work in process inventory, Dec. 31: 30,000

Raw materials inventory, Jan. 1: 16,000

Raw materials inventory, Dec. 31: 17,000

How much is the cost of materials purchased in 2020?

a. 82,640

b. 72,000

c. 29,200

d. 115,400

Q3) All of the following methods may be used to account for the revenue from scrap sales except:

a. Credit Factory Overhead, if the scrap cannot be identified with a specific job

b. Credit Work in Process, if the scrap is identified with a specific job

c. Credit Scrap Revenue, which is included in the "Other Income" section of the income statement

d. Credit Materials, if the scrap would have been able to be recycled