Practice Test

Q1) A process loss that does not affect the cost per unit : Show Answer

Q2) In process costing, cost per unit increases because of : Show Answer

Q3) Input in a process is 3,000 units and normal loss is 10%. When finished output in the process is only 2,720 units, there is an: Show Answer

Q4) Normal cost of normal output of 80 units is Rs. 400 then value of abnormal wastage of 5 units will Be : Show Answer

Q5) A bakery produces cakes, biscuits and bread. These products should be treated as: Show Answer

Q6) If normal output of a process is 19,600 units and abnormal wastage is 100 units, then the actual output of the process will : Show Answer

Q7) Input in a process is 8,000 units and normal loss is 15%. If Abnormal Effectives is 100 units then actual output of the said process will be. Show Answer

Q8) If in a process normal loss is 10%, abnormal wastage is 100 units and the output is 8,000 units, then number of units initially introduced in the said process will be : Show Answer

Q9) In a process, value of abnormal wastage of 100 units is Rs.1,600 and selling price of wastage is Rs. 2 per unit, then the normal cost per unit will be : Show Answer

Q10) In each process 5% of the total weight put in is lost and 10% is scrap. If the output of process 'A' is 1,700 tons then the scrap will be : . Show Answer

Q11) In process Account, Abnormal Gain is written on the : Show Answer

Q12) In process Account. Abnormal Loss is written on the : Show Answer

Q13) Abnormal gain is written on the ___________ side of the process account. Show Answer

Q14) Abnormal process losses are transferred to _________________ Show Answer

Q15) Sale proceeds from abnormal process loss are credited to _________ A/c Show Answer

Q16) Costs incurred after split off stage are called ___________costs. Show Answer

Q17) When actual loss in process is more than normal loss, the difference between the two is called _________ Show Answer

Q18) When actual loss in process is less than normal is less than normal loss, the difference between the two is called________ Show Answer

Q19) Abnormal Wastage is written on the ______side of Process Account. Show Answer

Q20) The output of three different product P,Q and R in a factory are 20,000 kg. 15,000 kg. respectively. If the cost which totals to Rs. 13,75,000 and are in the proporation 4:6:7 then the cost per equivalent units is Rs. _________ Show Answer

Q21) A factory transferred out 8,800 completed units during May 2008. Opening Stock was 400 units 75% complete, Closing Stock was 800 units 50% completed. Assuming FIFO method, the equivalent production in May 2008 to which these data relate was : Show Answer

Q22) Most Logic Method of valuing equivalent production is : Show Answer

Q23) A bakery produces cakes, biscuit and bread. These products should be treated as : Show Answer

Q24) Wood pieces, left out in furniture should be treated as : Show Answer

Q25) Abnormal process losses is transferred to _________ Show Answer

Q26) In process account, total column indicates : Show Answer

Q27) Equivalent Production of Work-in-progress (WIP) is calculated by : Show Answer

Q28) Which of the following item appear on the debit side of process account? Show Answer

Q29) Normal process loss may rise due to : Show Answer

Q30) The process costing is not applicable for _____ industry. Show Answer

Q31) Actual Loss-Normal Loss = Show Answer

Q32) To ascertain cost of finished production and work-in-process. Show Answer

Q33) Under process costing : Show Answer

Q34) The work-in-progress at the end is 800 units which are complete up to 70%. Its equivalent unit are : Show Answer

Q35) Which of the following is not a feature of a process production system? Show Answer

Q36) Which of the following is most likely to use a process cost accounting system? Show Answer

Q37) Which of the following is not true regarding job order cost accounting and process cost accounting systems ? Show Answer

Q38) An equivalent unit of material is equal to ________ Show Answer

Q39) Which of the following industries uses process costing method Show Answer

Q40) Any loss caused by unexpected carelessness, accident is regarded as Show Answer

Q41) In FIFO Method closing inventory is valued at _________ Show Answer

Q42) Process A/c credited by ________ Show Answer

Q43) Which of the following is not debited to Process A/c Show Answer

Q44) Following data pertains to process ll. out put of Process l = Rs 28,200 (4,700 units), Normal loss of 10% of input , scrap value per unit = Rs.5 , direct wages = Rs.5000 , Direct expenses Rs.9,910 , Overheads are Rs. 32,000 in total and chargeable as 200% of direct wages. Output of process ll = 4300 units . Value of abnormal Gain of process ll =? Show Answer

Q45) Under Process Costing Show Answer

Q46) Process costing is that form of operation costing where ________ goods are produced. Show Answer

Q47) Under Process costing losses have to be classified into ________ & _________ Show Answer

Q48) Under process costing, output of one process account becomes the raw materials for subsequent process Show Answer

Q49) ____ is that part of process loss which cannot be controlled or reduced inspite of all the effort taken by the management. Show Answer

Q50) Under process costing, when the actual loss is less than normal loss there is an _____ Show Answer

Q51) Abnormal loss is always valued at _____ & _____ to process A/c. Show Answer

Q52) Abnormal gain is always valued at ____ & ____ to Process A/c. Show Answer

Q53) _______ is that part of process loss which can be controlled if suitable step are taken by management. Show Answer

Q54) Under process costing when actual loss is more than normal loss there is an _______. Show Answer

Q55) Closing stock of each Process Stock A/c is valued at _________ of respective Process A/c. Show Answer

Q56) ________ is a part of the process loss which is caused under normal circumstances. Show Answer

Q57) ________ is a method of costing used to ascertain the cost of the product at end of each process. Show Answer

Q58) _________ is a product derived from the main raw material which is having equal importance like another product. Show Answer

Q59) _______ is an additional product manufactured along with the main product which has insignificant value. Show Answer

Q60) Abnormal loss and Abnormal gain should be valued at ________ Show Answer

Q61) In following costing, direct cost involves more than indirect cost _______ Show Answer

Q62) Normal loss is calculated as a percentage of ________ of the respective process. Show Answer

Q63) Under process costing when actual loss is more than normal loss then there is ________ Show Answer

Q64) Under process costing, when actual loss is less than normal loss then there is ________ Show Answer

Q65) Cost per unit of Process A/c is calculated with the help of _______ formula. Show Answer

Q66) Under process costing, output of one process account becomes the finished goods for subsequent process. Show Answer

Q67) Under process costing , cost of product is calculated at the end of each process Show Answer

Q68) Process costing is that form of operation costing where standardized goods are produced. Show Answer

Q69) Job costing and process costing both are different. Show Answer

Q70) In process costing direct cost involved is more than indirect cost. Show Answer

Q71) Normal loss should be calculated at a certain percentage of input introduced to the respective process. Show Answer

Q72) Scrap loss (Normal loss) may or may not have scrap value. Show Answer

Q73) By-product has significant value. Show Answer

Q74) Joint-product has insignificant value. Show Answer

Q75) Abnormal gain arises due to efficiency of the production department. Show Answer

Q76) 160 units are introduced into a process at a cost of Rs. 2,400. The total additional expenditure incurred by the process is Rs. 1,440 of the units introduced 10% are normal wastage in the course of manufacture. The wastage units posses a value as scrap of Rs. 15 each. Due to abnormal causes only 128 units are produced. Calculate Abnormal loss. Show Answer

Q77) From the following details find out % of N/L and cost per unit of Process ‘C’ A/c & also Net profit. Output from process ‘B’ A/c Units 18,240 (Rs. 98,526)
Additional expenditure incurred Rs. 41,010
Scrap (Units) ?
Scrap Value Rs. 1.00 per unit
Final product sold Rs. 10.00 per unit
Selling price 20% on sales Show Answer

Q78) From the details given, find out Net profit:
The output 18,400 units were produced by Process ‘B’ @ Rs. 10 & which were transferred to the warehouse. 16,000 units of the finished products were sold @ Rs. 15 per unit. Selling & Distribution expenses were Rs. 2 per unit. There were no opening stocks of any type. Show Answer

Q79) Find out Raw Material introduced (Units) in Process I A/c:
Normal Loss 5%
Abnormal Loss (units) 50
Output (units) 900 Show Answer

Q80) Find out Raw Materials introduced (units) in process I A/c:
Normal Loss 10%
Abnormal Gain 100 units
Outputs (units)1,900 Show Answer

Q81) Find out Raw Materials introduced (units) in Process I A/c:
Normal Loss in Process 15% & Process II 10%
Actual output in Process- II 1500 units
Abnormal Loss in Process-II 30 units
Abnormal Loss in Process-I 200 units. Show Answer