QUESTION NO: 1
Eton Ltd. operates a manufacturing process that produces product A.
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the value of closing work in progress at the end of the month (to the nearest £)?
Eton Ltd. operates a manufacturing process that produces product A.
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the value of closing work in progress at the end of the month (to the nearest £)?
Correct Answer:
£16793
QUESTION NO: 2
An abnormal loss in a process occurs when:
An abnormal loss in a process occurs when:
Correct Answer: C
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QUESTION NO: 3
Refer to the exhibit.
Which of the following journal entries are required to record the wages payable?
The journal entries required to record the wages payable are:
Refer to the exhibit.
Which of the following journal entries are required to record the wages payable?
The journal entries required to record the wages payable are:
Correct Answer: A
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QUESTION NO: 4
A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.
Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was
$158,000.
The accounting entries for the absorption of production overhead for the period would be:
A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.
Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was
$158,000.
The accounting entries for the absorption of production overhead for the period would be:
Correct Answer: A
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QUESTION NO: 5
JB has fixed costs of $120,000 per annum. It manufactures a single product which it sells for $12 per unit. It has a profit/volume ratio of 60%.
JB's break-even point is
JB has fixed costs of $120,000 per annum. It manufactures a single product which it sells for $12 per unit. It has a profit/volume ratio of 60%.
JB's break-even point is
Correct Answer:
16671 units
QUESTION NO: 6
The following list contains many different types of costs for a business. However, only four of them would be considered costs centres. Which four?
The following list contains many different types of costs for a business. However, only four of them would be considered costs centres. Which four?
Correct Answer: C,E,F,G
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QUESTION NO: 7
Refer to the exhibit.
A company operates a process costing system. The following data relates to Process X for the month of September.
Normal loss is 5% of input and all losses occur at the end of the process.
The number of equivalent units, using an average cost basis of valuation, was:
Materials:
Refer to the exhibit.
A company operates a process costing system. The following data relates to Process X for the month of September.
Normal loss is 5% of input and all losses occur at the end of the process.
The number of equivalent units, using an average cost basis of valuation, was:
Materials:
Correct Answer:
44117
QUESTION NO: 8
Refer to the exhibit.
The management accountant has completed the initial allocation and apportionment of overheads as follows.
The service department costs are now to be reapportioned to the other departments as follows, taking account of reciprocal servicing.
After the service department costs have been reapportioned, the total overhead cost of Department A, to the nearest $, will be:
Refer to the exhibit.
The management accountant has completed the initial allocation and apportionment of overheads as follows.
The service department costs are now to be reapportioned to the other departments as follows, taking account of reciprocal servicing.
After the service department costs have been reapportioned, the total overhead cost of Department A, to the nearest $, will be:
Correct Answer:
$29318
QUESTION NO: 9
Which of the following would be the most appropriate cost unit for a transport delivery service?
Which of the following would be the most appropriate cost unit for a transport delivery service?
Correct Answer: D
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QUESTION NO: 10
A tomato producer is investigating the correlation between the height of his plants and the size of the tomatoes. He has tallied up his height results and produced this table.
Using the information provided, find the median and modal class and correctly select these answers from the list.
A tomato producer is investigating the correlation between the height of his plants and the size of the tomatoes. He has tallied up his height results and produced this table.
Using the information provided, find the median and modal class and correctly select these answers from the list.
Correct Answer: A,D
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QUESTION NO: 11
A flat letting company analyses its costs by individual property. Which of the following costs would be considered an indirect cost of the property?
A flat letting company analyses its costs by individual property. Which of the following costs would be considered an indirect cost of the property?
Correct Answer: B
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QUESTION NO: 12
Normal loss which has a scrap value in a process should be valued at:
Normal loss which has a scrap value in a process should be valued at:
Correct Answer: B
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