PROCESS COSTING

A process costing system is most likely used by which of the following?

• airplane manufacturing

• a paper manufacturing company

• an accounting firm specializing in tax returns

  
  

• a hospital

Which of the following is a prime cost?

• direct labor

• work in process inventory

• administrative labor

• factory maintenance expenses

Which of the following is a conversion cost?

• raw materials

• direct labor

• sales commissions

• direct material used

What is the cost of direct labor if the conversion costs are $330,000 and manufacturing overhead is $275,000?

• $55,000

• $275,000

• $330,000

• $605,000

What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000?

• $16,000

• $50,000

• $103,000

• $120,000

What is actual output if total material input is 1,000 and 5% normal loss

• 1000

• 50

• 950

• 905

During a period, 900 units costing RM19,800 were input to the process. Losses are 6% of input. There is no opening or closing work-in-progress. Which of the following is the cost per unit?

• RM22

• RM23.16

• RM23.40

• RM23.41

During a period, 900 units costing RM19,800 were input to the process. Losses are 6% of input with saleable value RM0.50 per unit. There is no opening or closing work-in-progress. Which of the following is the cost per unit?

• RM23.40

• RM23.37

• RM23.41

• RM23.35

The output produced in process A is 14,725. Normal loss has been set up as 5% of total input. How much total input for Process A?

• 13,989

• 15,000

• 15,500

• 15,461

When the input in process F is 10,000 kg with prediction of normal loss is 6%, what is abnormal gain / loss incur if total output manufactured is 9550 kg?

• Abnormal Gain 150 kg

• Abnormal loss 150 kg

• Abnormal gain 450 kg

• Abnormal loss 450 kg