Reference no: EM133033537
Questions -
(1) BSA Company produced three products from joint cost and joint process as follows: 20,000 units of Bi, 30,000 units of Es; 50,000 units Ey; total joint cost P200,000. Other information on per unit are MVSO, final sales price, further processing cost and disposal cost as follows: (Bi - P10, P15, P4 and P1); (Es - P17, P25, P5, P2); and (Ey - P14, P18, P2 and P3). Which method will result to P7.41 average unit cost for Es?
a. Average unit cost method
b. Market value at split-off method.
c. Reversal cost method.
d. Net realizable value method.
(2) The standard direct labor cost for a product is 3 hours at P7 per hour. Budgeted production was 20,000 units for the year and actual production was 22,000 units. Actual direct labor cost was P443,625 for 68,250 hours. Compute for the labor rate variance and labor efficiency variance.
a. P34,125 Unfavorable and P15,750 Favorable
b. P34,125 Favorable and P15,750 Unfavorable
c. P34,125 Favorable and P14,625 Unfavorable
d. P34,125 Unfavorable and P14,625 Favorable
(3) BSA Company uses a standard cost system. Information for raw materials for a product for May 2021 is as follows: Standard unit price P3.60; Actual purchase price per unit P3.70; Actual quantity purchased 20,000 units; Actual quantity used 19,000 units; standard quantity allowed for actual production 18,000 units. What is the material price variance?
a. P2,000 favorable
b. P2,000 unfavorable
c. P1,900 unfavorable
d. P1,800 unfavorable
(4) BSA Company produced three products from joint cost and joint process as follows: 20,000 units of Bi, 30,000 units of Es; 50,000 units Ey; total joint cost P200,000. Other information on per unit are MVSO, final sales price, further processing cost and disposal cost as follows: (Bi - P10, P15, P4 and P1); (Es - P17, P25, P5, P2); and (Ey - P14, P18, P2 and P3). What is the average unit cost of Ey under net realizable value?
a. P1.87
b. P4.00
c. P1.99
d. P3.87
(5) In the last process, it received 250,000 units at total cost of P1,750,000 from preceding process. 100% Materials are added at 50% stage of completion. 2,500 units were discovered lost during inspection at 90% stage of completion, of which 1,000 units were considered as normal. Materials and conversion added in this process were P250,000 and P190,000, respectively. At the end of the process, there were 10,000 units in-process inventory, 40% converted. What is the unit cost of finished goods?
a. P8.913
b. P8.821
c. P8.858
d. P8.902