1. If computational and record-keeping costs are aboutthe same under both FIFO a
ID: 2457720 • Letter: 1
Question
1. If computational and record-keeping costs are aboutthe same under both FIFO and weighted average, which of thefollowing method will generally be
preferred?
A. Weighted Average
B. FIFO
C. They offer the same degree of information
D. Cannot be determined with so little information
2. Which of the following System applies whenstandardized goods are produced under a series of inter-connectedoperations?
A. Job Order Costing
B. Process Costing
C. Standard Costing
D. All of the given options
3. The cost of material that is not completelyprocessed, would be found in which of the following inventoryaccount on the Balance Sheet?
A. Direct material inventory
B. Work-in-process inventory
C. Finished goods inventory
D. Supplies inventory
4. A complete set of Financial Statements for NestleCompany at December 31, 2008 would include each of the followings,EXCEPT:
A. Balance Sheet as of December 31, 2008
B. Statement of Projected Cash flows for 2009
C. Income Statement for the year ended December 31, 2008
D. Notes containing additional information that is useful ininterpreting the Financial
Statements
5. Total Fixed cost _______ with the increase inproduction.
A. Remains constant
B. Decreases
C. Increases
D. There is no relation between fixed cost and activitylevel
6. The following data is available for the BricksCompany:
Particulars Rs.
Freight in 20,000
Purchases return and allowances 80,000
Marketing expenses 200,000
Finished goods Inventory, ending 90,000
Cost of goods sold 700% of marketing expenses
You are required to calculate the cost of goodsavailable for sales if Gross Profit is
50% of cost of goods sold.
A. Rs. 1,490,000
B. Rs. 1,390,000
C. Rs. 1,500,000
D. Rs. 1,590,000
7. Consider the following:
Beginning work in process inventory Rs. 20,000
Direct material used Rs. 50,000
Direct labor used Rs. 80,000
Manufacturing overhead Rs. 120,000
Ending work in process inventory Rs. 10,000
Cost of finished goods manufactured Rs. 260,000
The total manufacturing costs would be:
A. Rs. 250,000
B. Rs. 260,000
C. Rs. 270,000
D. Rs. 280,000
8. Job 210 was unfinished at the end of the accountingperiod. The total cost
assigned to the job was Rs. 12,000 of which Rs. 3,000was direct material cost.
Factory overheads were allocated to goods in process at150% of direct labor
cost. What was the amount of direct labor cost chargedto Job 210?
A. Rs. 3,600
B. Rs. 3,000
C. Rs. 5,400
D. Rs. 9,000
9. Job 210 was unfinished at the end of the accountingperiod. The total cost assigned to the job was Rs. 12,000 of whichRs. 3,000 was direct material cost. Factory overheads wereallocated to goods in process at 150% of direct labor cost. Whatwas the amount of Factory over head cost charged to Job210?
A. Rs. 3,600
B. Rs. 3,000
C. Rs. 5,400
D. Rs. 9,000
10. The over applied balance of the Factory Overheadledger account is Rs. 36,000,
a significant amount. The ending balances of Goods inProcess Inventory,
Finished Goods Inventory and Cost of Goods Sold accountsare Rs. 12,000, Rs.
8,000, and Rs. 60,000, respectively. On the basis ofending balances, how much
of the over applied balance of overhead should beallocated to each of these
accounts?
A. Rs.5, 400, Rs.27, 600, Rs.3, 000
B. Rs.27,400, Rs. 3,600, Rs. 5,000
C. Rs. 5,400, Rs. 3,600, Rs. 27,000
D. None of the given options
11. PEL Limited has been using an overhead rate of Rs.5.60 per machine hour. During the year, overheads of Rs. 275,000were incurred and 48,000 machine hours worked. Therefore, overheadswere:
A. Under-applied by Rs.7,600
B. Over-applied by Rs. 6,200
C. Under-applied by Rs. 6,200
D. Over-applied by Rs. 7,600
12. Factory overhead should be allocated on the basisof:
A. Direct labor hours
B. Direct labor costs
C. An activity basis which relates to cost incurrence
D. Machine hours
13. If a company uses a predetermined rate for theapplication of factory overhead, the idle capacity variance isthe:
A. Over or under applied variable cost element of overheads
B. Difference in budgeted costs and actual costs of fixedoverheads items
C. Difference in budgeted cost and actual costs of variableoverheads items
D. Over or under applied fixed cost element of overheads
14. Which of the following manufacturing operations,which is best, suited to the utilization of a job ordersystem?
A. Soft drink bottling operation
B. Crude oil refining
C. Plastic molding operation
D. Helicopter manufacturing
15. Which of the following is a characteristic ofprocess cost accounting system?
A. Material, Labor and Overheads are accumulated by orders
B. Companies use this system if they process custom orders
C. Only Closing stock of work in process is restated in terms ofcompleted units
D. Opening and Closing stock of work in process are related interms of completed
units
16. Which cost accumulation procedure is best suited toa continuous mass production process of similar units?
A. Job order costing
B. Standard costing
C. Actual costing
D. Process costing
17. Which of the following is an objective of costaccounting?
A. Provide information to management for decision making
B. Computation of cost per unit
C. Preparation of Financial Statement
D. Computation of relevant costs
18. Which of the following would be considered anexternal user of the firm's accounting information?
A. President
B. Stockholder
C. Sales manager
D. Controller
19. Cost accounting concepts include all of thefollowing EXCEPT:
A. Planning
B. Controlling
C. Sharing
D. Costing
20. The chief financial officer is also known asthe:
A. Controller
B. Staff accountant
C. Auditor
D. Finance director
Explanation / Answer
1.B 2.B 3.D 4.B 5.B 6.A 7.C 8.A 9.C 10.D 11.C 12.C 13.A 14.D 15.D 16.D 17.A 18.B 19.C 20.D
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.