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Cost Accounting Quiz: Winter 2025

The document contains a cost accounting quiz with two main questions. The first question involves calculating the earnings of an employee, Becky Graham, based on her production and hours worked, and preparing a journal entry for payroll distribution. The second question requires calculating the ending inventory and cost of units issued for a company's materials account using FIFO, LIFO, and Moving Average methods.

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Fatimah Sagheer
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27 views3 pages

Cost Accounting Quiz: Winter 2025

The document contains a cost accounting quiz with two main questions. The first question involves calculating the earnings of an employee, Becky Graham, based on her production and hours worked, and preparing a journal entry for payroll distribution. The second question requires calculating the ending inventory and cost of units issued for a company's materials account using FIFO, LIFO, and Moving Average methods.

Uploaded by

Fatimah Sagheer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Winter 2025

Cost Accounting

Quiz 2

Section A

Name and ID: --------------------------------------------------------------

Q1. 10 marks

Becky Graham earns $15 per hour for up to 300 units of production per eight-hour day. If she produces
more than 300 pieces per day, she will receive an additional piece rate of $.40 per unit. A
summary of her work week follows:

Hours Worked Pieces


Finished
Monday 8 350
Tuesday 8 280
Wednesday 8 320
Thursday 8 290
Friday 8 300

(a) Determine Graham’s earnings for each day and for the week.

(b) Prepare the journal entry to distribute the payroll.

ANS:
(a) Graham’s earnings are calculated as follows:

Hours Pieces Earnings Earnings Make-up Payroll


Worked Finished @ @ Guarantee Earnings
$15.00/hr $.40/unit
Monday 8 220 $120 $140 $140
Tuesday 8 180 120 112 $ 8 120
Wednesday 8 200 120 128 128
Thursday 8 200 120 116 4 120
Friday 8 190 120 120 120
$600 $616 $12 $628

(b)
Work in Process 616
Factory Overhead 12
Payroll 628

Q2. The materials account of the Flynn Company reflected the following changes during May: 5 marks
Balance, May 1 500 units @ $10
Received, May 5 300 units @ $12
Issued, May 10 400 units
Received, May 15 200 units @ $15
Issued, May 25 300 units

Calculate the ending inventory at May 31 and the cost of the units issued in May using each of the
following methods:
(a) First in, first out (FIFO)
5

ANS:
(a) FIFO:
Received Issued Balance
Unit Unit Unit
Date Quantity Price Amount Quantity Price Amount Quantity Price Amount
5/1 500 10 5,000
5/5 300 12 3,600 500 10
300 12 8,600
5/10 400 10 4,000 100 10
300 12 4,600
5/15 200 15 3,000 100 10
300 12
200 15 7,600
5/25 100 10 1,000
200 12 2,400 100 12
200 15 4,200

Ending Inventory:
300 units having a total cost of $4,200
(100 units x $12) + (15 units x $15)

Cost of Units Issued:


700 units having a total cost of $7,400 (4,000 + 1,000 + 2,400)

(b) LIFO:
Received Issued Balance
Unit Unit Unit
Date Quantity Price Amount Quantity Price Amount Quantity Price Amount
5/1 500 10 5,000
5/5 300 12 3,600 500 10
300 12 8,600
5/10 100 10 1,000
300 12 3,600 400 10 4,000
5/15 200 15 3,000 400 10
200 15 7,000
5/25 100 10 1,000
200 15 3,000 300 10 3,000

Ending Inventory:
300 units having a total cost of $3,000 (300 x $10)

Cost of Units Issued:


700 units having a total cost of $8,600
(1,000 + 3,600 + 1,000 + 3,000)

(b) Moving Average:


Received Issued Balance
Unit Unit Unit
Date Quantity Price Amount Quantity Price Amount Quantity Price Amount
5/1 500 10 5,000
5/5 300 12 3,600 800 10.75 8,600
5/10 400 10.75 4,300 400 10.75 4,300
5/15 200 15 3,000 600 12.17 7,300
5/25 300 12.17 3,650 300 12.17 3,650

Ending Inventory:
300 units having a total cost of $3,650
Cost of Units Issued:
700 units having a total cost of $7,950 (4,300 + 3,650)
Unit cost calculations:
8,600 / 800 = 10.75

7,300 / 600 = 12.16667

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