REVISION OF CHAP 7,8,9 (PART 2)

Which of the following businesses is likely to adopt a process costing system?

• Catering service companies.

• Construction companies.

• Oil refining companies.

• Printing service companies.

In order to compute the equivalent units of production using the Weighted Average method of process costing, the following equation should be used:

• Equivalent units of beginning work in process + units completed and transferred out.

• Equivalent units of beginning work in process + equivalent units of ending work in process.

• Units completed and transferred out + equivalent units of ending work in process.

• Units completed and transferred out + equivalent units of beginning work in process.

What is the combination of the conversion costs?

• Direct materials costs and direct labour costs.

• Indirect materials costs and indirect labour costs.

• Direct materials costs and manufacturing overhead costs.

• Direct labour costs and manufacturing overhead costs.

The cost of the previous department is equal to ...

• transferred-in cost.

• transferred-out cost.

• conversion cost.

• direct material costs.

Following are the information in the Production Cost Report except:

• Equivalent units.

• Cost per equivalent unit.

• Total costs.

• Period costs.

Features of transferred-in cost in the Production Cost Report exist in the ...

• first department.

• second department.

• all departments.

• no department.

A method of calculating a product cost assuming both variable and fixed manufacturing costs as product cost refers to ...

• Absorption Costing.

• Marginal Costing.

• Actual Costing.

• Normal Costing.

Fixed manufacturing cost which is fixed overhead cost; will be treated as period cost in ...

• Absorption Costing.

• Marginal Costing.

• Actual Costing.

• Normal Costing.

Fixed manufacturing overhead cost is not an inventoriable element in ...

• Standard Costing.

• Normal Costing.

• Absorption Costing.

• Marginal Costing.

Product cost under Marginal Costing will include ...

• all variable costs.

• direct materials, direct labour and manufacturing overhead costs.

• all manufacturing costs.

• direct materials, direct labour and variable manufacturing overhead costs.