Camille Company has underapplied overhead of P45,000 for the year ended December'31. Before disposition of the underapplied overhead, selected December 31 balances from Camille Company's records are as follows: Cost of goods sold P 720,000 Inventories Direct materials Work in process Finished goods 36,000 54,000 90,000 Under Camille's cost accounting system, over or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. 27. In its income statement, Camille should report cost of goods sold of а. Р682,500 b.. P 684,000 C.. P 756,000 d. P 757,500 Happy Burger Co. has a commissary that supplies food and other products to its restaurants. It has two service departments, computer services (S1) and administration and maintenance (S2), which support two operating departments, food products (P1) and supplies (P2). As internal auditor, you are checking the procedures for cost allocation and find the following results: Costs allocated to Pl: P 30,000 from S1 ? from S2 Costs allocated to P2: P 15,000 from S2 ? from S1 Total costs for the two service departments - P 80,000 S2's services are provided as follows: 20% to S1 50% to P1 30% to P2 28. Using direct method of allocating service department costs, compute the total service department costs incurred by S2. а. Zero b. P 20,625 с. P 40,000 d. P 50,000
Camille Company has underapplied overhead of P45,000 for the year ended December'31. Before disposition of the underapplied overhead, selected December 31 balances from Camille Company's records are as follows: Cost of goods sold P 720,000 Inventories Direct materials Work in process Finished goods 36,000 54,000 90,000 Under Camille's cost accounting system, over or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. 27. In its income statement, Camille should report cost of goods sold of а. Р682,500 b.. P 684,000 C.. P 756,000 d. P 757,500 Happy Burger Co. has a commissary that supplies food and other products to its restaurants. It has two service departments, computer services (S1) and administration and maintenance (S2), which support two operating departments, food products (P1) and supplies (P2). As internal auditor, you are checking the procedures for cost allocation and find the following results: Costs allocated to Pl: P 30,000 from S1 ? from S2 Costs allocated to P2: P 15,000 from S2 ? from S1 Total costs for the two service departments - P 80,000 S2's services are provided as follows: 20% to S1 50% to P1 30% to P2 28. Using direct method of allocating service department costs, compute the total service department costs incurred by S2. а. Zero b. P 20,625 с. P 40,000 d. P 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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THIS is cOST ACCOUNTING FOR FACTORY
Transcribed Image Text:Camille Company has underapplied overhead of P45,000 for the year ended
December'31. Before disposition of the underapplied overhead, selected December
31 balances from Camille Company's records are as follows:
Cost of goods sold
P 720,000
Inventories
Direct materials
Work in process
Finished goods
36,000
54,000
90,000
Under Camille's cost accounting system, over or underapplied overhead is allocated
to appropriate inventories and cost of goods sold based on year-end balances.
27. In its income statement, Camille should report cost of goods sold of
а. Р682,500
b.. P 684,000
C.. P 756,000
d. P 757,500
Transcribed Image Text:Happy Burger Co. has a commissary that supplies food and other products to its
restaurants. It has two service departments, computer services (S1) and administration
and maintenance (S2), which support two operating departments, food products (P1)
and supplies (P2). As internal auditor, you are checking the procedures for cost
allocation and find the following results:
Costs allocated to Pl:
P 30,000 from S1
? from S2
Costs allocated to P2:
P 15,000 from S2
? from S1
Total costs for the two service departments - P 80,000
S2's services are provided as follows:
20% to S1
50% to P1
30% to P2
28. Using direct method of allocating service department costs, compute the total
service department costs incurred by S2.
а.
Zero
b. P 20,625
с.
P 40,000
d. P 50,000
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