1.)What is the only reason for the difference between the equivalent unit of production computed under average process costing and FIFO process costing?

a Completed portion in ending work in process inventory

b Completed portion in beginning work in process inventory

c Incomplete portion in ending work in process inventory

d. Incomplete portion in beginning work in process inventory

2.) Under which process costing method will the cost of the work in process inventory beginning be ignored in the computation of cost per unit?

a FIFO process costing

b Neither A nor B

c Both A and B

d Average process costing

3.) Which costing system is ideal for backflush costing and just in time inventory system?

Standard costing system

Normal costing system

Actual costing system

Budgeted costing system

4.) Under IAS 18, what is the proper measurement of revenue at the date of its recognition?

a. Amortized or depreciated cost of the consideration received or receivable.

b. Historical cost of the consideration received or receivable.

c. Book value of the consideration received or receivable.

d. Fair value of the consideration received or receivable.

5.) Which of the following will increase the cost of goods sold of a manufacturing concern during the year?

a. Decrease in the finished goods inventory during the year.

b Increase in the work in process inventory during the year.

c Decrease in the salary of the factory workers during the year.

d Adjusting entry for insignificant over-application of factory overhead.

An entity employs normal costing for its production. The following data are provided during the year:

Net purchases of raw materials during the year P500,000

Total labor costs during the year 800,000

Depreciation of factory assets during the year 100,000

Utilities on the factory during the year 300,000

Beginning Ending

Raw materials inventory P200,000 P300,000

Work in process inventory 500,000 200,000

Finished goods inventory 600,000 300,000

Additional notes are provided:

The entity uses a single account for its direct material and indirect materials. Direct material used is three times the indirect material used.

The indirect labor cost is 1/8 of the total labor costs.

The overhead application rate is 80% of direct labor costs.

Any over or under application of overhead is considered material.

What is the adjusted costs of goods sold during the year?

a. P2,194,424

b P2,200,000

c P2,192,481

d P2,183,220