Rap Obu

1. What are equivalent units in the context of process costing?

A. Notional whole units representing incomplete work

B. Actual whole used units to quantify abnormal losses

C. Actual whole used units to quantify normal losses

D. Notional whole units representing completed work

2. The following may occur if process costing:

1. Incomplete opening units

2. Complete units

3. Incomplete closing units

For which of the above are equivalent units relevant?

A. 2 and 3 only

B. 1 and 2 only

C. 1, 2 and 3

D. 1 and 3 only

3. In which of the following two are service costing is appropriate?

A. University

B. Bakery

C. Road construction

D. Hospital

4. Work in process in a process at the end of a period is 1,350 units. The WIP is complete as to material and 30% to conversion cost. Cost per equivalent unit is $ 9 and $ 2 for material and conversion cost respectively. What is the value of WIP ?

5. The following data relates to the manufacture of a liquid for last month:

Input 2,000 units @ $ 20,160

Output 1,680 units

Normal loss 10% of input with no residual value

There is no opening or closing inventories.

What is the cost per unit of the process output for last month ?

6. The following data relates to the manufacture of a chemical for last month.

Input 5,000 liters

Normal loss 8% of input

Output 4,550 liters

There is no opening or closing work in progress.

What was the abnormal gain/loss last month?

A. Abnormal loss of 400 liters

B. Abnormal gain of 50 liters

C. Abnormal gain of 400 liters

D. Abnormal loss of 50 liters

7. The following data relates in a process:

Input 1,000 units at cost of $ 2,700

Output 860 units

Normal loss 10% of input

No Inventory is held. What is the cost per unit of the...