Question No: 21 ( Marks: 1 ) - Please choose one
The Process of cost apportionment is carried out so that:
► Cost may be controlled
► Cost unit gather overheads as they pass through cost centers
► Whole items of cost can be charged to cost centers
► Common costs are shared among cost centers
Question No: 22 ( Marks: 1 ) - Please choose one
Where there is mass production of homogeneous units or where few products are produced in batches, which of the following cost driver would be regarded as best base for the determination of Factory overhead absorption rate?
► Number of units produced
► Labor hours
► Prime cost
► Machine hours
Question No: 23 ( Marks: 1 ) - Please choose one
The flux method of labor turnover denotes:
► Workers employed under the expansion schemes of the company
► The total change in the composition of labor force (page 98)
► Workers appointed against the vacancy caused due to discharge or quitting of the organization
► Workers appointed in replacement of existing employees
Question No: 24 ( Marks: 1 ) - Please choose one
If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
Amount of commission received will be:
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500
Question No: 25 ( Marks: 1 ) - Please choose one
Payslip contains all EXCEPT:
► Gross pay
► Statutory & non- statutory deductions
► Net pay
► Tax rebates
Question No: 26 ( Marks: 1 ) - Please choose one
Payroll includes:
► Salaries & Wages of direct labor
► Salaries & Wages of Indirect labor
► Salaries & Wages of Administrative
► Salaries & Wages of direct labor, Indirect labor, and Administrative
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following document evidences the transaction of purchase of material?
► Material requisition
► Store requisition
► Purchase order
► Purchase invoice
Question No: 28 ( Marks: 1 ) - Please choose one
If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units?
► 2,592 units
► 25,920 units
► 18,720 units
► 129,600 units
Question No: 29 ( Marks: 1 ) - Please choose one
When purchases are added to raw material opening Inventory, we get the value of:
► Material consumed.
► Material available for use.
► Material needed.
► Raw material ending inventory.
Question No: 30 ( Marks: 1 ) - Please choose one
Finished goods inventory costs represent the costs of goods that are:
► Currently being worked on
► Waiting to be worked on
► Waiting to be sold
► Already delivered to customers
Question No: 31 ( Marks: 1 ) - Please choose one
The salary of factory clerk is treated as:
► Direct labor cost
► Indirect labor cost (page 69)
► Conversion cost
► Prime cost
Question No: 32 ( Marks: 1 ) - Please choose one
The cost of Telephone bill of the factory is treated as:
► Fixed cost
► Variable cost
► Step cost
► Semi variable cost
Question No: 33 ( Marks: 1 ) - Please choose one
Cost accounting concepts include all of the following EXCEPT:
► Planning
► Controlling
► Sharing
► Costing
Question No: 34 ( Marks: 1 ) - Please choose one
Reduction of labor turnover, accidents, spoilage, waste and absenteeism are the results of which of the following wage plan?
► Piece rate plan
► Time rate plan
► Differential plan
► Group bonus system
Question No: 35 ( Marks: 1 ) - Please choose one
All of the following are characteristics of Group Bonus Scheme EXCEPT:
► A standard time is set for the completion of a job
► If the time taken is greater than the time allowed, the workers in the group receive time wages
► If the time taken is less than the time allowed, the group receives a bonus on time saved
► If the time taken is greater than the time allowed, the workers in the group receive time deductions for extra hours
Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following is a mechanical device to record the exact time of the workers?
► Clock Card
► Bin Card
► Token System
► Attendance Register
Question No: 37 ( Marks: 1 ) - Please choose one
Which of the following is calculated by a formula that uses net sales as denominator?
► Inventory turnover ratio
► Gross profit rate
► Return on Investment
► None of the given options
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following formula is used to calculate the Number of units manufactured?
► Sold units - Units of closing finished goods inventory + Units of opening finished goods inventory
► Sold units + Average units of finished goods inventory
► Sold units - Average units of finished goods inventory
► Sold units + Units of closing finished goods inventory - Units of opening finished goods inventory
Question No: 39 ( Marks: 1 ) - Please choose one
The net sales of the business totals Rs. 200,000 and the Cost of Goods Sold for the same period totals Rs.146,000. What is the gross margin ratio?
► 0.22
► 0.25
► 0.27
► 0.33
Question No: 40 ( Marks: 1 ) - Please choose one
Consider the following data:
| Particulars | Rs. |
| Raw material inventory beginning | 14,000 |
| Purchases of Raw materials | 120,000 |
| Raw material inventory Ending | 10,000 |
| Direct labor | 200,000 |
| Manufacturing Overhead (actual) | 402,000 |
| Manufacturing Overhead (applied) | 404,000 |
What is the amount of under or over applied manufacturing overhead cost?
► Over applied Rs. 2,000
► Over applied Rs. 3,000
► Under applied Rs. 3,000
► Under applied Rs. 2,000
Question No: 41 ( Marks: 10 )
D Corporation submits the following data for September 1998:
Direct labor cost Rs. 30,000
Cost of goods sold Rs. 111,000 (Before adjusting for over or under applied overhead)
Factory overhead is applied at the rate of 150% of direct labor cost. Over or under applied factory overhead is charged to the cost of goods sold account. Inventory accounts showed these beginning and ending balances as follows:
| | September 1 | September 30 |
| Finished goods | Rs. 15,000 | Rs. 17,500 |
| Work in process | 9,600 | 13,000 |
| Materials | 7,000 | 7,000 |
| Other data: | | |
| Factory overhead (actual) | | Rs. 48,200 |
| Marketing expense | | 14,100 |
| General and Administrative expenses | | 22,900 |
| Sales for the month | | 1,82,000 |
Prepare an income statement with a schedule showing the cost of goods manufactured and sold.
D corporation
Income statement
Dated: September 1 to September 30.
Descriptions Rs. Rs.
Sales 1,82,000
Net sales 1,82,000
Cost of Goods Sold:
Opening Material 7,000
Material available for consume 7,000
Less: Closing Material - 7,000
Material Consumed 0
Direct labor cost 30,000
Prime Cost 30,000
Applied FOH 45,000
Factory Cost 75,000
Opening WIP +9,600
Goods available for manufactured 84,600
Closing WIP -13,000
Goods manufactured 71,600
Opening Finished Goods +15,000
Goods available for sale 86,600
Closing Finished Goods -17,500
Goods sold 69,100
Add: Under-applied Factory overhead 3,200
Cost of goods sold 72,300
Gross Profit 1,09,700
Less: Operative Expenses
| Marketing expense | | 14,100 |
| General and Administrative expenses | | 22,900 |
| Sales for the month | | 1,82,000 |
219,000
Net Income -109,300
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