Cost accounting is a management accounting plus a small part of financial accounting to the extent that its product costing functions satisfies the needs of external reporting. II. Cost accounting is a system that records, summarizes, analyzes and interprets the details of the cost of materials, labor and overhead necessary to produce and sell an article. 

2. I. Manufacturing cost includes direct materials, direct labor and overhead. Direct materials also called raw materials, are those materials used in manufacturing process that become a significant part of the finished product. II. Manufacturing overhead are cost that cannot be traced directly to the product or cannot be considered as direct material or direct labor. Manufacturing overhead is also called manufacturing expense or factory burden. 

3. I. When raw materials are issued to production, these will become part of work in process inventory. Raw materials Inventory account reflects the cost of materials and factory supplies that will be used in the manufacturing process. II. Conversion cost is composed of direct labor and overhead cost. 

4. I. When goods are sold, their cost is debited to Cost of goods sold. II. Work in process account pertains to inventory not yet completed or needs further processing. When completed, Work in process account is debited. 

5. Flor company consumed P 450,000 worth of direct materials during May, 2011. At the end of the month, the direct materials inventory of Flor was P 25,000 lower than the May 1 inventory level. How much was the direct materials procured during May 2011?

6. ASTA company incurred the following cost during the month; direct labor, P120,000; factory overhead, P108,000 and direct material purchases, P160,000. Inventories show the following costs: Finished Goods inventory has beginning and ending balances of P 27,000 and P 30,000, respectively. Work in process has beginning and ending inventory balances of 61,500 and 57,500, respectively. Direct materials inventory has beginning and ending balances of 37,500 and 43,500, respectively. How much is the cost of goods manufactured?

7. SAN JOSE Corp has the following data: Purchases of Raw materials of 200,000; Ending Raw materials of 10,000; Conversion cost of 500,000; Cost of Goods manufactured of 800,000; Work in process, beginning of 50,000; FG inventory, beginning of 30,000 and Finished Goods inventory, ending is 70,000. If sales are 1,200,000, what is the gross profit?

8. GENOCIDE Inc. is a manufacturing company using the perpetual system. The beginning inventory of materials totaled P 150,000 & all debits to "materials account" amounted to P 400,000. The excess of beginning inventory over its ending inventory is P 60, 000.00. how much is the total materials issued to production?

9. Sales salaries commissions are 10,000 when 80,000 units are sold, and 14,000 when 120,000 units are sold. Using the high low method. What is the fixed portion of sales salaries and commissions?