Question No: 1 ( Marks: 1 ) - Please choose one
D Corporation uses process costin to calculate the cost of
manufacturin Crunchies. Durin the month 12,500 units were completed,
1,500 units remained in work in process at 25 percent completed. How
many equivalent units are produced?
► 12,500 units
► 12,875 units
► 14,250 units
► 12,125 units
25% of 1500 completed = 1500*.25 = 375
375+12500 = 12875
Question No: 2 ( Marks: 1 ) - Please choose one
reenwood petroleum has the data for the year was as follow:
Openin WIP 26,000 barrels.
Introduced durin the year 67,000 barrels
Closin WIP 15,000 barrels.
How many barrels were completed and transferred out of work-in-process
this period?
► 67,000 barrels
► 78,000 barrels
► 82,000 barrels
► 93,000 barrels
Question No: 3 ( Marks: 1 ) - Please choose one
Durin the year 50,000 units put in to process.30, 000 units were
completed. Closin WIP were 20,000 units, 70% completed. How much the
equivalent units of output would be produced?
► 20,000 units
► 30,000 units/
► 36,000 units
► 44,000 units
70%of WIP completed = 2000*.70= 1400
30,000+1400= 44,000
Question No: 4 ( Marks: 1 ) - Please choose one
What would be the effect on the cost of a department in case of
normal Loss?
► Decreased
► Increased
► No effect
► Increase to the %ae of loss
Question No: 5 ( Marks: 1 ) - Please choose one
When 10,000 endin units of work-in-process are 30% completed as to
conversion, it means:
► 30% of the units are completed
► 70% of the units are completed
► Each unit has been completed to 70% of its final stae
► Each of the units is 30% completed
Question No: 6 ( Marks: 1 ) - Please choose one
In order to compute equivalent units of production, which of the
followin must be reasonably estimated?
► Units
► The percentae of completion
► Direct material cost
► Units started and completed
Question No: 7 ( Marks: 1 ) - Please choose one
In a job order cost system, the use of direct materials would be
recorded as a debit to:
► Finished oods inventory
► Manufacturin Overhead
► Raw Materials inventory (not confirm)
► Work in Process inventory
Question No: 8 ( Marks: 1 ) - Please choose one
If manaement predicts total direct labor costs of Rs. 100,000 and
total overhead costs of Rs. 200,000, what is its predetermined
overhead rate based on direct labor costs?
► 50%
► 100%
► 200%
► Cannot be determined
Question No: 9 ( Marks: 1 ) - Please choose one
P Ltd applied overheads on the basis of direct labor hours. The
overhead applied rate for the period has been based on budeted
overhead of Rs.150, 000 and 50,000 direct labor hours. Durin the
period overhead of Rs. 180,000 were incurred and 60,000 direct labor
hours were used.
Which of the followin statement is correct?
► Overhead was Rs.30,000 over applied
► Overhead was Rs.30,000 under applied
► No under or over applied occurred
► None of the iven
Question No: 10 ( Marks: 1 ) - Please choose one
Raymond Corporation estimates factory overhead of Rs. 345,000 for
next fiscal year. It is estimated that 60,000 units will be produced
at a material cost of Rs. 575,000. Conversion will require 34,500
direct labor hours at a cost of Rs. 10 per hour, with 25,875 machine
hours.
FOH rate on the bases of Prime cost would be?
► Rs. 37.5 per unit
► Rs. 56.6 per unit
► Rs. 60 per unit
► Rs.1 per unit
Question No: 11 ( Marks: 1 ) - Please choose one
Nelson Company has followin FOH detail.
Budeted
(Rs.) Actual (Rs.)
Production Fixed overheads 36,000
39,000
Production Variable overheads 9,000
12,000
Direct labor hours
18,000 20,000
What would be the amount of under/over applied FOH
► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the followin isTRUE reardin the use of blanket rate?
► The use of a sinle blanket rate makes the apportionment of
overhead costs unnecessary
► The use of a sinle blanket rate makes the apportionment of
overhead costs necessary
► The use of a sinle blanket rate makes the apportionment of
overhead costs uniform
► None of the iven options
Question No: 13 ( Marks: 1 ) - Please choose one
A Blanket Rate is:
► A sinle rates which used throuhout the oranisation
departments
► A double rates which used throuhout the oranisation
departments
► A sinle rates which used in different departments of the
oranisation.
► None of the iven
Question No: 14 ( Marks: 1 ) - Please choose one
It is possible for an item of overhead expenditure to be shared
amonst many departments. It is also possible that this same item may
relate to just one specific department.
If the item was not chared specifically to a sinle department this
would be an example of:
► Apportionment
► Allocation
► Re-apportionment
► Absorption
Question No: 15 ( Marks: 1 ) - Please choose one
FOH absorption rate is calculated by the way of:
► Estimated FOH Cost/Direct labor hours
► Estimated FOH Cost/Direct labor cost
► Estimated FOH Cost/Machine hours
► All of the iven options
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the followin is / are time based incentive wae plan?
► Hasley Premium Plan
► Hasley Weir Premium Plan
► Rowan Premium Plan
► All of the iven options
Question No: 17 ( Marks: 1 ) - Please choose one
If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
What will be the total Salary?
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500
Question No: 18 ( Marks: 1 ) - Please choose one
Payroll includes:
► Salaries & Waes of direct labor
► Salaries & Waes of Indirect labor
► Salaries & Waes of Administrative
► Salaries & Waes of direct labor, Indirect labor, and
Administrative
Question No: 19 ( Marks: 1 ) - Please choose one
Which of the followin document evidences the transaction of purchase
of material?
► Material requisition
► Store requisition
► Purchase order
► Purchase invoice
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the followin isNOT an assumption of the basic economic-order
quantity model?
► Annual demand is known
► Orderin cost is known
► Carryin cost is known
► Quantity discounts are available
Question No: 21 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Orderin costs are Rs. 8
per order, and soda costs Rs. 3 per case. Orders arrive four days from
the time they are placed. Daily holdin costs are equal to 5% of the
cost of the soda. What is the EOQ for soda?
► 4 cases
► 8 cases
► 10 cases
► 23 cases
Question No: 22 ( Marks: 1 ) - Please choose one
All of the followin are deducted from ross Profit to calculate
Operatin income EXCEPT:
► Sellin expenses
► Advertisin expenses
► Administrative expenses
► Financial expenses
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the followin isCORRECT to calculate cost of oods
manufactured?
► Direct labor costs plus total manufacturin costs
► The beinnin work in process inventory plus total manufacturin
costs and subtract the endin work in process inventory
► Beinnin raw materials inventory plus direct labor plus
factory overhead
► Conversion costs and work in process inventory adjustments
results in cost of oods manufactured
Question No: 24 ( Marks: 1 ) - Please choose one
Which of the followin is a period cost?
► Direct materials
► Indirect materials
► Factory utilities
► Administrative expenses
Question No: 25 ( Marks: 1 ) - Please choose one
The salary of factory clerk is treated as:
► Direct labor cost
► Indirect labor cost
► Conversion cost
► Prime cost
D Corporation uses process costin to calculate the cost of
manufacturin Crunchies. Durin the month 12,500 units were completed,
1,500 units remained in work in process at 25 percent completed. How
many equivalent units are produced?
► 12,500 units
► 12,875 units
► 14,250 units
► 12,125 units
25% of 1500 completed = 1500*.25 = 375
375+12500 = 12875
Question No: 2 ( Marks: 1 ) - Please choose one
reenwood petroleum has the data for the year was as follow:
Openin WIP 26,000 barrels.
Introduced durin the year 67,000 barrels
Closin WIP 15,000 barrels.
How many barrels were completed and transferred out of work-in-process
this period?
► 67,000 barrels
► 78,000 barrels
► 82,000 barrels
► 93,000 barrels
Question No: 3 ( Marks: 1 ) - Please choose one
Durin the year 50,000 units put in to process.30, 000 units were
completed. Closin WIP were 20,000 units, 70% completed. How much the
equivalent units of output would be produced?
► 20,000 units
► 30,000 units/
► 36,000 units
► 44,000 units
70%of WIP completed = 2000*.70= 1400
30,000+1400= 44,000
Question No: 4 ( Marks: 1 ) - Please choose one
What would be the effect on the cost of a department in case of
normal Loss?
► Decreased
► Increased
► No effect
► Increase to the %ae of loss
Question No: 5 ( Marks: 1 ) - Please choose one
When 10,000 endin units of work-in-process are 30% completed as to
conversion, it means:
► 30% of the units are completed
► 70% of the units are completed
► Each unit has been completed to 70% of its final stae
► Each of the units is 30% completed
Question No: 6 ( Marks: 1 ) - Please choose one
In order to compute equivalent units of production, which of the
followin must be reasonably estimated?
► Units
► The percentae of completion
► Direct material cost
► Units started and completed
Question No: 7 ( Marks: 1 ) - Please choose one
In a job order cost system, the use of direct materials would be
recorded as a debit to:
► Finished oods inventory
► Manufacturin Overhead
► Raw Materials inventory (not confirm)
► Work in Process inventory
Question No: 8 ( Marks: 1 ) - Please choose one
If manaement predicts total direct labor costs of Rs. 100,000 and
total overhead costs of Rs. 200,000, what is its predetermined
overhead rate based on direct labor costs?
► 50%
► 100%
► 200%
► Cannot be determined
Question No: 9 ( Marks: 1 ) - Please choose one
P Ltd applied overheads on the basis of direct labor hours. The
overhead applied rate for the period has been based on budeted
overhead of Rs.150, 000 and 50,000 direct labor hours. Durin the
period overhead of Rs. 180,000 were incurred and 60,000 direct labor
hours were used.
Which of the followin statement is correct?
► Overhead was Rs.30,000 over applied
► Overhead was Rs.30,000 under applied
► No under or over applied occurred
► None of the iven
Question No: 10 ( Marks: 1 ) - Please choose one
Raymond Corporation estimates factory overhead of Rs. 345,000 for
next fiscal year. It is estimated that 60,000 units will be produced
at a material cost of Rs. 575,000. Conversion will require 34,500
direct labor hours at a cost of Rs. 10 per hour, with 25,875 machine
hours.
FOH rate on the bases of Prime cost would be?
► Rs. 37.5 per unit
► Rs. 56.6 per unit
► Rs. 60 per unit
► Rs.1 per unit
Question No: 11 ( Marks: 1 ) - Please choose one
Nelson Company has followin FOH detail.
Budeted
(Rs.) Actual (Rs.)
Production Fixed overheads 36,000
39,000
Production Variable overheads 9,000
12,000
Direct labor hours
18,000 20,000
What would be the amount of under/over applied FOH
► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the followin isTRUE reardin the use of blanket rate?
► The use of a sinle blanket rate makes the apportionment of
overhead costs unnecessary
► The use of a sinle blanket rate makes the apportionment of
overhead costs necessary
► The use of a sinle blanket rate makes the apportionment of
overhead costs uniform
► None of the iven options
Question No: 13 ( Marks: 1 ) - Please choose one
A Blanket Rate is:
► A sinle rates which used throuhout the oranisation
departments
► A double rates which used throuhout the oranisation
departments
► A sinle rates which used in different departments of the
oranisation.
► None of the iven
Question No: 14 ( Marks: 1 ) - Please choose one
It is possible for an item of overhead expenditure to be shared
amonst many departments. It is also possible that this same item may
relate to just one specific department.
If the item was not chared specifically to a sinle department this
would be an example of:
► Apportionment
► Allocation
► Re-apportionment
► Absorption
Question No: 15 ( Marks: 1 ) - Please choose one
FOH absorption rate is calculated by the way of:
► Estimated FOH Cost/Direct labor hours
► Estimated FOH Cost/Direct labor cost
► Estimated FOH Cost/Machine hours
► All of the iven options
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the followin is / are time based incentive wae plan?
► Hasley Premium Plan
► Hasley Weir Premium Plan
► Rowan Premium Plan
► All of the iven options
Question No: 17 ( Marks: 1 ) - Please choose one
If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
What will be the total Salary?
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500
Question No: 18 ( Marks: 1 ) - Please choose one
Payroll includes:
► Salaries & Waes of direct labor
► Salaries & Waes of Indirect labor
► Salaries & Waes of Administrative
► Salaries & Waes of direct labor, Indirect labor, and
Administrative
Question No: 19 ( Marks: 1 ) - Please choose one
Which of the followin document evidences the transaction of purchase
of material?
► Material requisition
► Store requisition
► Purchase order
► Purchase invoice
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the followin isNOT an assumption of the basic economic-order
quantity model?
► Annual demand is known
► Orderin cost is known
► Carryin cost is known
► Quantity discounts are available
Question No: 21 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Orderin costs are Rs. 8
per order, and soda costs Rs. 3 per case. Orders arrive four days from
the time they are placed. Daily holdin costs are equal to 5% of the
cost of the soda. What is the EOQ for soda?
► 4 cases
► 8 cases
► 10 cases
► 23 cases
Question No: 22 ( Marks: 1 ) - Please choose one
All of the followin are deducted from ross Profit to calculate
Operatin income EXCEPT:
► Sellin expenses
► Advertisin expenses
► Administrative expenses
► Financial expenses
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the followin isCORRECT to calculate cost of oods
manufactured?
► Direct labor costs plus total manufacturin costs
► The beinnin work in process inventory plus total manufacturin
costs and subtract the endin work in process inventory
► Beinnin raw materials inventory plus direct labor plus
factory overhead
► Conversion costs and work in process inventory adjustments
results in cost of oods manufactured
Question No: 24 ( Marks: 1 ) - Please choose one
Which of the followin is a period cost?
► Direct materials
► Indirect materials
► Factory utilities
► Administrative expenses
Question No: 25 ( Marks: 1 ) - Please choose one
The salary of factory clerk is treated as:
► Direct labor cost
► Indirect labor cost
► Conversion cost
► Prime cost
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