Which of the following is/are reported in production cost report?

• A) All of the given options
• B) How the costs were assigned to the output?
• C) The costs charged to the department
• D) The equivalent units of production by the department

Which one of the following best describes a by-product?

• A) A product that is produced from raw material that would otherwise be scraped
• B) A product created with the main product where sales value does not cover its cost of production
• C) A product that has always higher selling price per unit than the main product
• D) A product that usually produces a large amount of revenue as compared to the main product revenue

Which of the following costs do not change when the activity base fluctuates?

• A) Mixed costs
• B) Discretionary costs
• C) Fixed costs
• D) Variable costs

Which of the following cost is NOT account for in the cost of production report?

• A) Direct labor cost
• B) Selling & administrative expenses
• C) Direct material cost
• D) Factory overhead cost

If units started in process are 35,000, units still in process are 5,000 and degree of completion is 100% materials & 60% conversation cost. Which of the following is Equivalent Production quantity of Material cost?

• A) 3,000 units
• B) None of the given options
• C) 33,000 units
• D) 35,000 Units

A bag manufacturing concern completed 1500 units and 500 units are still in process (100% completed with respect to material and 75% completed with respect to conversion cost). Required: What is equivalent unit produce of direct material?

• A) 2000
• B) 500
• C) 1000
• D) 1500

If 100 units are exactly half-way through the production process in terms of the amount of cost they have absorbed, they are effectively equal to:

• A) 105 completed units
• B) 50 completed units
• C) 150 completed units
• D) None of the given options

In cost of production report of ABC company; 5,500 units are still in process complete which are 100% complete as to direct material and 75% with respect to labor and FOH.
Required: Identify the correct value of labor cost in “cost apportioned” section if labor per unit cost is Rs. 15.

• A) Rs. 61,875
• B) Rs. 5,500
• C) Rs. 82,500
• D) Rs. 4,125

How many units were completed if, opening work in process units of a company are 1,200 units, additional put into process units are 2,800 and closing work in process units are 500 units?

• A) 500 units
• B) 3,300 units
• C) 3,500 units
• D) 3,000 units

In cost of production report of ABC company; 5,500 units are still in process complete which are 100% complete as to direct material and 75% with respect to labor and FOH.
Required: Identify the correct value of factory overhead (FOH) cost in “cost apportioned” section if FOH per unit cost is Rs. 15.

• A) Rs. 4,125
• B) Rs. 61,875
• C) Rs. 82,500
• D) Rs. 5,500

Quantity schedule is one of the important components of which of the following report?

• A) Annual report of company
• B) None of the given options
• C) Auditor’s report
• D) Cost of production report

Equivalent units produced for direct labor & FOH are 2,000 units Direct labor cost =Rs. 50,000 Factory overhead cost = Rs. 40,000 Required: Identify the cost per unit with the help of given information.

• A) Rs. 45 per unit
• B) Rs. 20 per unit
• C) Rs. 5 per unit
• D) Rs. 25 per unit

Units which have been started but have not been completed till the end of period are called:

• A) Finished work in process units
• B) Opening work-in-process units
• C) None of the given options
• D) Closing work-in-process units

All of the following are examples of industries that uses process costing system EXCEPT:

• A) Beverages
• B) Hospitality
• C) Petroleum
• D) Food

According to marginal costing concept, all fixed costs are considered as:

• A) Mixed cost
• B) Period cost
• C) Production cost
• D) Sunk cost

In cost of production report, “Quantity schedule” includes all of the following information, EXCEPT:

• A) Units put into process
• B) Equivalent units to be produced
• C) Units completed and transferred
• D) Units still in process

During the month if 12,500 units were completed, 1,500 (completed up to 35%) units remained in work in process, how many equivalent units are produced?

• A) 13,025 units
• B) None of the given options
• C) 1,500 units
• D) 12,500 units

When two products are manufactured during a common process, the factor that determines whether the products are joint products or one is main product and other one is by-product is the:

• A) Potential marketability for each product
• B) Relative total sales value of each product
• C) Amount of work expended in the production of each product
• D) Management policy

Following calculation has been extracted from the section of ‘Equivalent Units Produced’ of cost of production report.
Direct material = 1500+ (? x 100%) = 1600

Required: Identify the missing value of units in process which are used in above working.

• A) 30 units
• B) 1500 units
• C) 100 units
• D) 1530 units

The difference between unit product costs under absorption costing as compared to variable costing is:

• A) Direct materials and direct labor
• B) Fixed and variable portions of manufacturing overhead
• C) Fixed manufacturing overhead only
• D) Variable manufacturing overhead only