MGT402 Cost & Management Accounting Online Quiz No.3 Solution and Discussion

Question # 1 of 10 ( Start time: 10:27:39 PM )     Total Marks: 1
Which of the following best describe a by product?
Select correct option:
    A product that usually produces a large amount of revenue as compared to the main product revenue
    A product that is produced from raw material that would otherwise be scraped
    A product that has always higher selling price per unit than the main product
        A product created with the main product where sales value does not cover its cost of production

Question # 2 of 10 ( Start time: 10:29:01 PM )     Total Marks: 1
In the operations of a plastic toy manufacturer, the cost per equivalent unit is calculated as Rs. 1.60. The equivalent units of output are 50,000. The closing stock is 10,000 units, 40% complete. What will be the value of closing stock?
Select correct option:
    Rs. 9,600
    Rs. 80,000
    Rs. 16,000
    Rs. 6,400

Question # 3 of 10 ( Start time: 10:30:33 PM )     Total Marks: 1
Which of the following is the best characteristic of a by product:
Select correct option:
    Is produced from material that would otherwise be of no value
    Has a lower selling price than the main product
    Is created along with the main product, but its sales value does not cover its production cost
    Usually produces a larger amount of revenue than the main product

Question # 4 of 10 ( Start time: 10:32:07 PM )     Total Marks: 1
In comparing common cost and joint cost:
Select correct option:
    The terms can be correctly used interchangeably
    Both have the same objective of assigning production cost to cost center
    They differ since common cost products or services have been obtained separately
    Common cost is sometime used as Joint cost

Question # 5 of 10 ( Start time: 10:33:51 PM )     Total Marks: 1
If computational and record-keeping costs are same under both FIFO and weighted average, which of the following method will generally be preferred?
Select correct option:
    Weighted Average
    FIFO
    Hybrid process
   Cannot be determined with so little information

Question # 6 of 10 ( Start time: 10:35:34 PM )     Total Marks: 1
A chemical process has normal wastage of 10% of input. In a period, 2,500 Kg of material were input and there was abnormal loss of 75 Kg. What quantity of good production was achieved?
Select correct option:
    2,175 kg
    2,250 kg
    2,425 kg
    2,500 kg

Question # 7 of 10 ( Start time: 10:37:09 PM )     Total Marks: 1
The Process of cost apportionment is carried out so that:
Select correct option:
    Cost may be controlled
    Cost unit gather overheads as they pass through cost centers
     Whole items of cost can be charged to cost centers
    Common costs are shared among cost centers
Question # 8 of 10 ( Start time: 10:38:45 PM )     Total Marks: 1
The appropriate journal entry to transfer the cost of completed units from the Work in Process account would involve a credit to Work in Process and a debit to which of the following accounts?
Select correct option:
    Income Summary
    Raw Materials Inventory
    Finished Goods
    Manufacturing Summary

Question # 9 of 10 ( Start time: 10:39:50 PM )     Total Marks: 1
Which of the following is NOT true about job order cost sheets?
Select correct option:
    Job cost sheets contain direct material costs
    Job cost sheets contain actual amounts of factory overhead
        Job cost sheet does not contain conversion cost
    Job cost sheets contain direct labor costs

Question # 10 of 10 ( Start time: 10:41:37 PM )     Total Marks: 1
FOH applied rate of Rs. 5.60 per machine hour. During the year the FOH to Rs.275,000 and 48,000 machine hours were used. Which one of following statement is correct?
Select correct option:
    Overhead was under-applied by Rs.6,200
    Overhead was over-applied by Rs.6,200
    Overhead was under-applied by Rs.7,200
    Overhead was over-applied by Rs.7,200