Scribd
Upload
89 views8 pages

Comprehensive Cost

In a process costing system using the weighted average method, the cost per equivalent unit for a given cost component is found by dividing the current period cost plus the cost of beginning inventory by the equivalent units. Transferred in costs refer to costs which are transferred from the previous department. Costs of a single production process that yields multiple products simultaneously are referred to as joint costs. The work in process cost in ending inventories is 100% complete as to direct material costs in a department if direct materials were added throughout the production process in the department. Abnormal spoilage is an inherent problem that a factory cannot avoid or control.

Uploaded by

Tilahun Girma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
89 views8 pages

Comprehensive Cost

In a process costing system using the weighted average method, the cost per equivalent unit for a given cost component is found by dividing the current period cost plus the cost of beginning inventory by the equivalent units. Transferred in costs refer to costs which are transferred from the previous department. Costs of a single production process that yields multiple products simultaneously are referred to as joint costs. The work in process cost in ending inventories is 100% complete as to direct material costs in a department if direct materials were added throughout the production process in the department. Abnormal spoilage is an inherent problem that a factory cannot avoid or control.

Uploaded by

Tilahun Girma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

1.

In a process costing system using the weighted average method, cost per equivalent unit for a given
cost component is found by dividing which of the following by equivalent unit?
A. Only current period cost
B. Current period cost plus the cost of beginning inventory
C. Current period cost less the cost of beginning inventory
D. Current period cost plus the cost of ending inventory
2. Transferred in costs are
A. Costs which are transferred from the previous department
B. Costs of direct material entered in the production process
C. Costs which are partially completed as to the previous department
D. All of the above
3. Costs of a single production process that yields multiple products simultaneously.
A. Joint cost.
B. Split-off point.
C. Separable cost.
D. By product cost.
E. None of the above
4. The work in process cost in ending inventories is 100% complete as to direct material costs in a
department. Identify the correct one
A. Direct materials were added at the beginning of the production process.
B. Direct materials were added at the end of the production process in the department.
C. Conversion costs were added throughout the process.
D. All of the above
5. If beginning work in process is 2,000 units, ending work in process is 1,000 units, and the units
accounted for equals 5,000 units, what are the units started into production
A. 7,000
B. 6,000
C. 3,000
D. 4,000
6. A component of manufacturing costs which is an element of both prime cost & conversion cost is:
A. Direct labor cost
B. Indirect labor costs
C. Direct material cost
D. Indirect material costs
7. The work in process cost in ending work in process inventories is 0% complete as to direct material
costs in a department. Identify the correct statement;
A. Direct materials were added at the beginning in this department.
B. Direct materials were added at the end of the process in the department.
C. Conversion costs were added throughout the process.
D. All of the above
8. A cost that is incurred before point off split is called
A. Joint cost C. Process further cost
B. Selling price D. All are possible answers
9. Which of the following is not section of financial budget?
A. Capital budget C. Cash budget
B. Budgeted balance sheet D. Operating expense budget
10. At breakeven point:
A. Total revenue exceeds total cost.
B. Total number of units produced and sold is zero.
C. Operating income equal to total revenue
D. Total contribution margin equal to total fixed cost.
11. All of the following are non-relevant costs, except;
A. Sunk costs C. Opportunity costs
B. Committed costs D. Historical costs
12. . Which of the following is incorrect about budget?
A. It should indicate its objective.
B. It is a carefully prepared report of past business conditions.
C. Its period should be specific.
D. It should indicate the required resource for achieving objectives
13. Which of the following is material that is left over after the production process is completed?
A. Scrap
B. Rework
C. Normal Spoilage
D. Abnormal Spoilage
14. Which cost accumulation procedure is best suited to similar products in the production process?
A. Standard Costing System
B. Process Costing System
C. Job order Costing System
D. Actual Costing System
15. Which one of the following is an inherent problem that a factory cannot avoid or control
A. Abnormal Spoilage
B. Normal Spoilage
C. Scrap
D. Rework
2
2
2
2
2

You might also like