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PROCESS COSTING

Total questions: 14

Worksheet time: 1hrs 10mins

Name
Class
Date
1.

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

a)

airplane manufacturing

b)

a paper manufacturing company

c)

an accounting firm specializing in tax returns


d)

a hospital

2.

Which of the following is a prime cost?

a)

direct labor

b)

work in process inventory

c)

administrative labor

d)

factory maintenance expenses

3.

Which of the following is a conversion cost?

a)

raw materials

b)

direct labor

c)

sales commissions

d)

direct material used

4.

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

a)

$55,000

b)

$275,000

c)

$330,000

d)

$605,000

5.

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?

a)

$16,000

b)

$50,000

c)

$103,000

d)

$120,000

6.

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

a)

1000

b)

50

c)

950

d)

905

7.

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?

a)

RM22

b)

RM23.16

c)

RM23.40

d)

RM23.41

8.

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?

a)

RM23.40

b)

RM23.37

c)

RM23.41

d)

RM23.35

9.

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?

a)

13,989

b)

15,000

c)

15,500

d)

15,461

10.

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?

a)

Abnormal Gain 150 kg

b)

Abnormal loss 150 kg

c)

Abnormal gain 450 kg

d)

Abnormal loss 450 kg

11.

A company has one finishing process and uses process costing. During a period 500 units costing $27,800 were input to the process. Losses are 15% of input. There is no opening or closing work in progress. 

Which of the following is the cost per unit?

a)

$55.60

b)

$65.41

c)

$61.78

d)

$58.53

12.

A company has one manufacturing process and uses process costing. During a period the cost of raw materials input into the process was $30,000. There was no opening work in progress. 1,000kg of materials were used and losses are 5% of input. Conversion costs were $6,000. There is no closing work in progress. 

What is the cost per kg during this period?

a)

$30.00

b)

$31.58

c)

$36.00

d)

$37.89

13.

A company has one finishing process and uses process costing. During a period 500 units costing $27,800 were input to the process. Losses are 15% of input. There is no opening or closing work in progress 

Which of the following is the cost per unit?

a)

$55.60

b)

$65.41

c)

$61.78

d)

$58.53

14.

2,700kg of material, costing $9.00 per kg, was input to a manufacturing process in a period. 10% of input is lost through wastage. Conversion costs totalled $18,640 in the period. There was no work-in-progress at the start or end of the period. What was the cost per kg of output in the period?

a)

$15.90

b)

$16.67

c)

$17.67

d)

$16.90