General (C1 120121 BSAF-214 Cost Accounting-II S4 M1) - Microsoft Teams

1/12/2021 C1 120121 BSAF-214 Cost Accounting-II S4 M1 (C1 120121 BSAF-214 Cost Accounting-II S4 M1)
C1 120121 BSAF-214 Cost

Accounting-II S4 M1 (C1 120121
BSAF-214 Cost Accounting-II S4 M1)
Select the Appropriate Option. Each question carries One marks/points. (50 x 01 = 50 Marks)
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1. Under Halsey Plan, the bonus is paid at a fixed percentage of time saved is:
(1 Point)
50%
40%
100%
20%
2. Under job order costing system, which of the following costs would be recorded
as debit to manufacturing overhead account?
(1 Point)
Direct Material Cost
Indirect Material Cost
Direct Labor cost
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Marketing cost
3. At which stage of the manufacturing process would direct labor costs be applied?
(1 Point)
Finished goods
Cost of goods sold
Work in process
Raw materials
4. Which of the following methods of wage payment is most suitable where quality
and accuracy of work is of primary importance?
(1 Point)
Halsey Premium Plan
Halsey wire plan
Rowan Plan
Taylor’s differential piece rate
5. Total Transferred out cost plus cost of normal spoilage is divided by good units to
calculate:
(1 Point)
Cost per unit of goods units transferred in
Revenue per unit of goods units transferred in
Revenue per unit of goods units transferred out
Cost per unit of goods units transferred out
6. Ali expects to produce and sell 7,000 units at Rs. 15 each. Each unit will cost her
Rs. 9 to produce and fixed costs will be Rs. 60,000 per annum. What is the break-
even point in units?
(1 Point)
1000 units
6667 units
10000 units
4000 units
7. The stage in production process where the manufactured goods are checked
whether the units are acceptable or not is classified as:
(1 Point)
Rework point
Inspection Point
Spoilage point
Scrap Point
8. The cost of abnormal spoilage is not treated as:

(1 Point)
Invetoriable cost
Non inventoriable cost
Conversion cost
Sunk cost
9. While preparing the cost of production report (CPR) of a processing department,

the per unit cost from preceding department needs to be adjusted when the:
(1 Point)
Normal loss is identified during the process
Normal loss is identified at the end of process
Abnormal loss is identified at the end of process
Abnormal loss is identified during the process
10. Using equation method, Break-even point is calculated as:

(1 Point)
Sales = Variable expenses + Fixed expenses + Profit
None of the above
Sales = Variable expenses - Fixed expenses + Profit
Sales = Variable expenses + Fixed expenses – Profit
11. In which of the following incentive plans of wage payment, wage on time basis are
not guaranteed?
(1 Point)
Guaranteed wage rate
Halsey Premium plan
Halsey wire plan
Taylor’s Differential Piece rate
12. According to Taylor’s Differential plan, the worker is paid according to his?
(1 Point)
According to degree of efficiency
According to degree of loyalty
According to degree of effectiveness
According to degree of flexibility
13. Estimate amount of profit if Sales is 20,000 units Fixed cost is Rs 70,000, Variable
cost per unit is Rs 10 and selling price per unit is Rs 16.
(1 Point)
Rs 30,000
Rs 50,000
Rs 60,000
Rs. 10000
14. ________ labour cost is the remuneration paid to the employees who are directly
engaged in the manufacturing operations.
(1 Point)
Direct
Abnormal
Indirect
Normal
15. The costing which explains how and when scarp affects the operating income of
company is classified as:
(1 Point)
Conversion costing
Abnormal scrap costing

Normal scarp costing
Inventory costing
16. The correct journal entry to dispose off an under-applied manufacturing overhead
balance to cost of goods sold account is:
(1 Point)
Manufacturing overhead Dr. & Cost of goods sold Cr.
Cost of goods sold Dr. & Manufacturing overhead Cr.
Manufacturing overhead Dr. & Work in process Cr.
Cost of goods sold Dr. & Work in process Cr.
17. Given that for a job standard time is 9 hours, actual time taken is 7 hours and the
time rate is Rs.80 per hour. What is the total wages, under Halsey Premium Plan?
(1 Point)
Rs. 650
Rs. 560
Rs.720
Rs. 640
18. The process costing system is best suited for:

(1 Point)
Service industries only
Industries where different types of products are manufactured
All of the above
Industries where homogeneous products are manufactured on continuous basis
19. Which of the following costs is recorded on the job cost sheet?
(1 Point)
Direct labor cost
All of the above
Manufacturing overhead cost
Direct materials cost
20. When standard output is 125 units per hour and actual output is 150 units per
hour, the efficiency is?
(1 Point)
140%
150%
120%
110%
21. The production units that do not meet customer specification but can be sold to
other customer as All of the above finished goods are classified as:
(1 Point)
Spoilage
Rework
Reduced work
Scrap
22. The Blending Department has Material unit cost Rs. 5.00 and conversion cost unit
cost is Rs. 4. The units in process at end 2000 units which are 100% complete as to
material and 40% complete as to conversion cost , the cost assigned to units in
process at end are:
(1 Point)
Rs. 13200
Rs. 8000
Rs. 18000
Rs. 10000
23. When partially completed units are converted to a comparable number of

completed units, they are referred to as?
(1 Point)
Equivalent units
Converted units
Split-off units
Equitable units
24. If the units of normal spoilage are 150 units and total good units are 1500 then
the normal spoilage rate is:
(1 Point)
14%
15%
12%
10%
25. The direct service labor is Rs. 10000 the idle time wages are Rs.2000 and the
overtime premium is Rs. 1250 then the total figure would be:
(1 Point)
Rs.12000
Rs.10000
Rs. 11250
Rs. 13250
26. Which of the following is a correct journal entry to record the shipment of a
completed job to customer?
(1 Point)
Cost of goods sold Dr. & Accounts receivable Cr
Accounts receivable Dr. & Cost of goods sold C
Accounts receivable Dr. & Finished goods Cr
Accounts receivable Dr. & Sales Cr
27. The residual material which results from manufacturing products is called:
(1 Point)
Scrap
Reduced work
Spoilage
Rework
28. Materials, labor and overhead costs are traced to individual products or jobs
rather than processing departments. This statement is true for:
(1 Point)
A variable costing system
A process costing system
A job order costing system
An activity based costing system
29. Which of the following is not relevant to a process costing system?

(1 Point)
Low production flexibility
Repetitive production
High production volume
Heterogeneous products
30. A loss in processing departments which can be avoided under normal and efficient
working conditions is generally known as:
(1 Point)
Department loss
Normal loss
Extra loss
Abnormal loss
31. During the accounting period, 15,000 units were completed and transferred to
finished goods. Five hundred units remain in process and are 60% completed. The
number of units started during the accounting period were:
(1 Point)
15500 units
14500 units
15300 units
18 500 units
32. Forth step in process costing system is to:

(1 Point)
Summarize flow of output
Compute output in units
Summarize total costs
Compute cost for each equivalent unit
33. Standard output is 200 units per day of 8 hours and the piece rates are 50 paise
per unit, under Taylor’s differential piece rate system, what will be amount of
wages if a worker produces 250 units in a day?
(1 Point)
Rs.100
Rs. 150
Rs. 120
Rs. 125
34. Given selling price is Rs 20 per unit, variable cost is Rs 16 per unit contribution
margin ratio is:
(1 Point)
25%
33%
20%
80%
35. The fixed cost can be divided by Break even sales to calculate:
(1 Point)
Contribution Margin
Variable cost
Sales price
Margin of safety
36. Which of the following would be accounted for using a job order cost system?
(1 Point)
The construction of new campus building
Production of personal computers
Production of automobiles
The refining of Petroleum
37. Manufacturing overhead would be over-applied if:

(1 Point)
Actual overhead > applied overhead
Actual overhead = applied overhead
Actual overhead < applied overhead
Applied overhead > direct materials cost + direct labor cost
38. A worker is paid Rs. 2.00 per unit and he produces 100 units in 8 hours. Keeping in
view the straight-piece rate system, the total wages of the worker would be?
(1 Point)
Rs. 800
Rs. 1600
Rs. 1000
Rs. 200
39. Which of the following would increase the break-even output level?
(1 Point)
Lower fixed costs
Higher production costs per unit of output
Higher selling prices for each unit sold
Lower output level
40. Fixed costs is Rs. 20,000; Sales price per unit is Rs. 8;Variable cost is Rs. 60,000
;Contribution for 6000 units is Rs. 12,000 The sales volume for break even is:
(1 Point)
10,000 units
8,000 units
12,000 units
14,000 units
41. Given Break even sales is 40,000 Profit earned is Rs 2,000 and fixed cost is Rs
8,000. Determine actual sales.
(1 Point)
Rs 50,000
None of the above
Rs 20,000
Rs 32,000
42. Which of the following are characteristics of Break even point?

(1 Point)
Contribution is equal to fixed cost
There is no loss and no profit to the firm
All of the above
Total revenue is equal to total cost
43. A Company had no beginning work in process. During the period, 7,000 units were
completed, and there were 1000 units of ending work in process. How many units
were started in production?
(1 Point)
5000 units
8000 units
9000 units
6000 units
44. An example of rework is:

(1 Point)
Defective Aluminum cans recycled by manufacturer
None of the above
Detection of defective Pieces before shipment
Short length from wood work
45. The predetermined overhead rate is Rs. 6.10 per direct labour hour. Job #110
required 210 direct labour hours of which 150 hours were incurred during the
current accounting period. How much overhead should be applied to Job#110
during the current accounting period?
(1 Point)
Rs. 915
Rs. 366
Rs. 1281
Rs. 610
46. The companies that produce many different products or services usually use:
(1 Point)
Both process costing and job order costing
None of the above
Process costing
Job order costing
47. Margin of safety is equal to:

(1 Point)
Actual sales – Sales at Breakeven point
Actual sales / Sales at Breakeven point
Actual sales + Sales at Breakeven point
Actual sales x Sales at Breakeven point
48. In manufacturing its products for the month of September 2020, El Dorado
Corporation incurred normal spoilage of Rs. 7,000 and abnormal spoilage of Rs.
3,000. How much spoilage cost should El Dorado charge as inventoriable for the
month of September 2020?
(1 Point)
Rs. 0
Rs. 3,000
Rs. 10,000
Rs. 7,000
49. A manufacturing process normally produces defective units equal to 1% of

production. Defective units are subsequently reworked and sold. The cost of
reworking these defective units should be charged to:
(1 Point)
Factory overhead control account
Cost of goods sold account
Work In process control account
Finished goods control account
50. In a job order cost accounting system, which account would be debited in
recording a materials requisition for direct materials?
(1 Point)
Factory overhead
Work in Process Inventory
Raw Material Inventory
Raw Material Purchases
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1/12/2021 C1 120121 BSAF-214 Cost Accounting-II S4 M1 (C1 120121 BSAF-214 Cost Accounting-II S4 M1)

C1 120121 BSAF-214 Cost

Direct Material Cost

Indirect Material Cost

Direct Labor cost

Cost of goods sold

Halsey Premium Plan

Halsey wire plan

Taylor’s differential piece rate

Cost per unit of goods units transferred in

Revenue per unit of goods units transferred in

Revenue per unit of goods units transferred out

Cost per unit of goods units transferred out

8. The cost of abnormal spoilage is not treated as:

Non inventoriable cost

9. While preparing the cost of production report (CPR) of a processing department,

Normal loss is identified during the process

Normal loss is identified at the end of process

Abnormal loss is identified at the end of process

Abnormal loss is identified during the process

10. Using equation method, Break-even point is calculated as:

Sales = Variable expenses + Fixed expenses + Profit

None of the above

Sales = Variable expenses - Fixed expenses + Profit

Sales = Variable expenses + Fixed expenses – Profit

Guaranteed wage rate

Halsey Premium plan

Halsey wire plan

Taylor’s Differential Piece rate

According to degree of efficiency

According to degree of loyalty

According to degree of effectiveness

According to degree of flexibility

Abnormal scrap costing

Normal scarp costing

Manufacturing overhead Dr. & Cost of goods sold Cr.

Cost of goods sold Dr. & Manufacturing overhead Cr.

Manufacturing overhead Dr. & Work in process Cr.

Cost of goods sold Dr. & Work in process Cr.

18. The process costing system is best suited for:

Service industries only

Industries where different types of products are manufactured

All of the above

Industries where homogeneous products are manufactured on continuous basis

Direct labor cost

All of the above

Manufacturing overhead cost

Direct materials cost

23. When partially completed units are converted to a comparable number of

Cost of goods sold Dr. & Accounts receivable Cr

Accounts receivable Dr. & Cost of goods sold C

Accounts receivable Dr. & Finished goods Cr

Accounts receivable Dr. & Sales Cr

A variable costing system

A process costing system

A job order costing system

An activity based costing system

29. Which of the following is not relevant to a process costing system?

Low production flexibility

High production volume

32. Forth step in process costing system is to:

Summarize flow of output

Compute output in units