Question No: 1 ( Marks: 1 ) - Please choose one
D Corporation uses process costing to calculate the cost of manufacturing Crunchies. During 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
Question No: 2 ( Marks: 1 ) - Please choose one
During the year 60,000 units put in to process.55, 000 units were completed. Closing WIP were 25,000 units, 40% completed. How much the equivalent units of output would be produced?
► 25,000 units
► 10,000 units
► 65,000 units
► 80,000 units
Question No: 3 ( Marks: 1 ) - Please choose one
FIFO is the abbreviation of:
► Final Interest-Free Option
► First in First out Method
► None of the given options
► Fixed income Financial Operations
Question No: 4 ( Marks: 1 ) - Please choose one
The cost that is subject to actual payment or will be paid for in future is called:
► Fixed cost
► Step cost
► Explicit cost
► Imputed cost
Question No: 5 ( Marks: 1 ) - Please choose one
A cost that has been incurred but cannot be changed by present or future decisions is called:
► Sunk cost
► Differential cost
►
► Marginal cost
Question No: 6 ( Marks: 1 ) - Please choose one
In the process costing when material is issued for production to department no 1.what would be the journal entry Passed?
► W.I.P (Dept-I)
To Material a/c
► W.I.P (Dept-ii)
To Material a/c
► Material a/c
To W.I.P (Dept-ii)
► W.I.P (Dept-ii)
To FOH applied.
Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following loss is not included as part of the cost of transferred or finished goods, but rather treated as a period cost?
► Operating loss
► Abnormal loss
►
► Non-operating loss
Question No: 8 ( Marks: 1 ) - Please choose one
In the process costing when labor is charged to production department no 1. What would be the journal entry Passed?
► Payroll a/c
To W.I.P (Dept-I)
► Payroll a/c
To W.I.P (Dept-II)
► W.I.P (Dept-I)
To Payroll a/c
► W.I.P (Dept-II)
To Payroll a/c
Question No: 9 ( Marks: 1 ) - Please choose one
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
► Work in Process Department A and a credit to Work in Process Department B
► Work in Process Department B and a credit to Work in Process Department A
► Work in Process Department B and a credit to Materials
► Finished Goods and a credit to Work in Process Department B
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following is/are reported in production cost report?
► The costs charged to the department
► How the costs were assigned to the output?
► The equivalent units of production by the department
► All of the given options
Question No: 11 ( Marks: 1 ) - Please choose one
All of the following are not characteristics of Process costing EXCEPT:
► High production volume and heterogeneous products
► High production volume and homogeneous products
► Low production volume and heterogeneous products
► Low production volume and homogeneous products
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is characteristic of a job order cost accounting system?
► It records manufacturing activities using a perpetual inventory system
► It tracks cost by job
► It is best suited for customized products
► All of the given options
Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following statements is TRUE?
► Companies that produce many different products or services are more likely to use job-order costing systems than process costing systems
► Costs are traced to departments and then allocated to units of product when job-order costing is used
► Job-order costing systems are used by service firms only and process costing systems are used by manufacturing concern only
► Companies that produce many different products or services are more likely to use process costing systems than Job order costing systems
Question No: 14 ( Marks: 1 ) - Please choose one
A company applied overheads on machine hours which were budgeted at 11,250 with overhead of Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692. Overhead were?
► Over applied by Rs.4, 058
► Under applied by Rs.2, 152
► Under applied by Rs.4, 058
► Over applied by Rs.2, 152
รจQuestion No: 15 ( Marks: 1 ) - Please choose one
If a company uses a predetermined rate for the application of factory overhead, the idle capacity variance is the:
► Over or under applied fixed cost element of overheads
► Over or under applied variable cost element of overheads
► Difference in budgeted costs and actual costs of fixed overheads items
► Difference in budgeted cost and actual costs of variable overheads items
Question No: 16 ( Marks: 1 ) - Please choose one
Under applied FOH costs are:
► Fixed costs not allocated to units produced
► Factory overhead costs not allocated to units costs
► Excess variable factory overhead costs
► Costs that can not be controlled
Question No: 17 ( Marks: 1 ) - Please choose one
Nelson Company has following FOH detail.
Budgeted (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: 18 ( Marks: 1 ) - Please choose one
Which of the following statement is TRUE about FOH applied rates?
► They are used to control overhead costs
► They are based on actual data for each period
► They are predetermined in advance for each period
► None of the given options
Question No: 19 ( Marks: 1 ) - Please choose one
A Blanket Rate is:
► A single rates which used throughout the organisation departments
► A double rates which used throughout the organisation departments
► A single rates which used in different departments of the organisation.
► None of the Given
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following statement is true ragarding Repeated distribution method?
► The re-allocation continues until the numbers being dealt with become very small
► The re-allocation continues until the numbers being dealt with become very Large
► The re-allocation continues until the numbers being dealt with become small
► None of the given options
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