SOL: Cost discussion (just for mgt402 students) yesterday's questions solved by Shoaib with refernce
Lakoda JIN
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
Completed units = 12500
25% of 1500 also completed = 0.25*1500 = 375
Total = 12500+375 = 12875
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
Completed units = 55000
40% of 25000 also completed = 0.4*25000 = 10000
Total = 55000+10000 = 65000
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
(See page #41 of handouts)
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
( See page #8 of handouts)
Explicit cost is the cost that is subject to actual payment or will be paid for in future.
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
► Opportunity cost
► Marginal cost
Sunk
costs are those costs which are incurred in the past.
They are called sunk because a past cost cannot be changed and decisions
involve
only the present and the future
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
► Opportunity 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
► Normal 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
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