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CHAPTER 16
Answers to Multiple Choice –Theoretical
1.
2.
3.
4.
5.

a b d a a

6.
7.
8.
9.
10.

c c a a C

Solutions to Multiple Choice – Computational
1.

b
Materials and In Process Inventory (MIP), June 1
Materials received
Materials and In Process Inventory (MIP), June 30
Materials used to be backflushed to finished goods

2.

a
Raw materials purchased
Raw materials used
Balance of MIP, end

3.

P 10,000
205,000
( 12,500)
P202,500

P880,000
(850,000)
P 30,000

c
MIP inventory, beginning
Raw materials purchased
MIP inventory, ending
Materials to be backflushed to finished goods
Conversion costs to be backflushed to finished goods

4.

P 38,700
680,000
( 41,900)
P676,800
P

5,300

c
Raw materials purchased
Materials used: (21,000 x P25)
MIP inventory, ending
Raw materials used
Conversion costs (21,000 x P20)
Finished goods
Cost of goods sold (20,000 x P45)
Finished goods inventory, ending

5.

P550,000
(525,000)
P 25,000
P525,000
420,000
945,000
(900,000)
P 45,000

a
Raw materials purchased
Materials standard cost: (192,000 x P26)
MIP Inventory, ending

P5,300,000
( 4,992,000)
P 308,000

Cost of goods sold: (192,000 x P41)

P7,872,000

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6.

d
Materials in April 1 MIP inventory balance: (31,000 – P1,400) P 29,600
Materials received during April
367,000
Materials in April 30 MIP, per physical count (P33,000–P1,800) ( 31,200)
Amount to be backflushed
P 365,400

7.

c
Materials in May 1 MIP balance: (P12,300 – P1,300)
Materials received during May
Materials in May 31 MIP balance: (P12,100 – P2,100)
Amount to be backflused

8.

c
Applied conversion costs
Actual conversion costs incurred:
Direct labor
Factory overhead
Overapplied conversion costs

9.

P1,300,000
P200,000
995,000

1,195,000
P 105,000

c
Materials used
Applied