Midterm Exam Accounting 206 2

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Ateneo de Zamboanga University
SCHOOL OF MANAGEMENT AND ACCOUNTANCY
Accounting 206: Cost Accounting and Cost Management, Part II

Midterm Examination Kelvin J. Culajara, BSA, CPA

Name: _____________________________________ Date: _______________ Score: __________

Test 1: Comprehensive Problem/Reporting
Assume that you are the newly-hired chief cost accountant of Wapayutana Company. As the chief officer, you are tasked to monitor the flow of costs throughout the process, and hence, you are accountable for the cost of production report which is done monthly. On your first day of work, you were summoned by the President of Wapayutana to orient you about the ins and outs of the company. He gave you the following information:
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Cost (in PhP)
Beginning inventory:

Materials 50,000 Direct labor 20,000 Factory overhead 20,000

Costs added on the month Materials 500,000 Direct labor 200,000 Factory overhead 200,000

Department 2: Mixing

Dec. 1, work in process
20,000
Transferred in
90,000
Dec. 31, work in process
10,000

*Beginning work in process is 3/4 complete, while ending work in process is 1/3 complete
Stage of completion in beginning and ending work in process refers to conversion costs.

Cost (in PhP)
Beginning inventory:

Transferred in 211,800 Material A 100,000 Material B 150,000 Direct labor 40,000 Factory overhead 40,000

Costs added on the month Material A 450,000 Material B 675,000 Direct labor 180,000 Factory overhead 180,000

Department 3: Bottling

Dec. 1, work in process
15,000
Transferred in
100,000
Dec. 31, work in process 5,000

*Beginning work in process is 2/3 complete while ending work in process is fully complete
Stage of completion in beginning and ending work in process refers to conversion costs.

Cost (in PhP)
Beginning inventory:

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