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 MGT 402 TODAY PAPER

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PostSubject: MGT 402 TODAY PAPER   Fri May 28, 2010 9:25 pm

Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following is added in purchases in order to get the value of Net purchases?
► Purchases returns
► Carriage inward
► Trade discount
► Rebates

Question No: 2 ( Marks: 1 ) - Please choose one
If, Gross profit = Rs. 40,000
GP Margin = 25% of sales
What will be the value of cost of goods sold?
► Rs. 160,000
► Rs. 120,000
► Rs. 40,000
► Can not be determined

Question No: 3 ( Marks: 1 ) - Please choose one
Cost of finished goods inventory is calculated by:
► Deducting total cost from finished goods inventory
► Multiplying units of finished goods inventory with the cost per unit
► Dividing units of finished goods inventory with the cost per unit
► Multiplying total cost with finished goods inventory

Question No: 4 ( Marks: 1 ) - Please choose one
Financial statements are prepared:
► Only for publicly owned business organizations
► For corporations, but not for sole proprietorships or partnerships
► Primarily for the benefit of persons outside of the business organization
► Depending upon only the need of the decision maker

Question No: 5 ( Marks: 1 ) - Please choose one
Over which of the following is the manager of the Profit center likely to have control?

I. Selling process
II. Controllable costs
III. Apportioned head office costs
IV. Capital investment in the center
► I, II and III
► I, II and IV
► I and II
► I, II, III and IV

Question No: 6 ( Marks: 1 ) - Please choose one
While transporting petrol, a little quantity will be evaporated; such kind of loss is termed as:
► Normal Loss.
► Abnormal Loss.
► Incremental Loss.
► Incremental abnormal loss.

Question No: 7 ( Marks: 1 ) - Please choose one
While deducting Income Tax from the gross pay of the employee, the employer acts as a (an) _________________for Income Tax Department.
► Agent of his own company
► Paid tax collection agent
► Unpaid tax collection agent
► None of the given options

Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is a cost that changes in proportion to changes in volume?

► Fixed cost
► Sunk cost
► Opportunity cost
► None of the given options

Question No: 9 ( Marks: 1 ) - Please choose one
The salary of factory clerk is treated as:
► Direct labor cost
► Indirect labor cost
► Conversion cost
► Prime cost

Question No: 10 ( Marks: 1 ) - Please choose one
Period costs are:
► Expensed when the product is sold
► Included in the cost of goods sold
► Related to specific period
► Not expensed

Question No: 11 ( Marks: 1 ) - Please choose one
Weighted average rate per unit is calculated by which of the following formula?
► Cost of goods issued/number of units issued
► Total cost/total units
► Cost of goods manufactured/closing units
► Cost of goods sold/total units

Question No: 12 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Ordering costs are Rs. 8 per order, and soda costs Rs. 3 per case. Orders arrive four days from the time they are placed. Daily holding costs are equal to 5% of the cost of the soda. What is the EOQ for soda?
► 4 cases
► 8 cases
► 10 cases
► 23 cases

Question No: 13 ( Marks: 1 ) - Please choose one
Direct Labor is an element of:
► Prime cost
► Conversion cost
► Total production cost
► All of the given options

Question No: 14 ( Marks: 1 ) - Please choose one
Basic pay + bonus pay + overtime payment is called:
► Net pay
► Gross pay
► Take home pay
► All of the given options

Question No: 15 ( Marks: 1 ) - Please choose one
The flux method of labor turnover denotes:
► Workers employed under the expansion schemes of the company
► The total change in the composition of labor force
► Workers appointed against the vacancy caused due to discharge or quitting of the organization
► Workers appointed in replacement of existing employees

Question No: 16 ( Marks: 1 ) - Please choose one
All of the following are cases of labor turnover EXCEPT:
► Workers appointed against the vacancy caused due to discharge or quitting of the organization
► Workers employed under the expansion schemes of the company
► The total change in the composition of labor force
► Workers retrenched

Question No: 17 ( Marks: 1 ) - Please choose one
Nelson Company has following FOH detail.
Budgeted (Rs.) Actual (Rs.)
Production Fixed overheads 36,000 39,000
Production Variable overheads 9,000 12,000
Direct labor hours 18,000 20,000

What would be the amount of under/over applied FOH

► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000

Question No: 18 ( Marks: 1 ) - Please choose one
In a job-order cost system, indirect labor costs would be recorded as a debit to:
► Finished Goods
► Manufacturing Overhead
► Raw Materials
► Work in Process

Question No: 19 ( Marks: 1 ) - Please choose one
A direct cost is identified by which of the following feature?


► Its behavior
► Its traceability
► Its controllability
► Its relevance

Question No: 20 ( Marks: 1 ) - Please choose one
The following information is available for ABC Co.
Marketing expenses Rs. 300,000
Ending inventory of finished goods Rs. 90,000
The cost of goods sold 500 % of Marketing expense
The cost of goods available for sale ?


► Rs. 300,000
► Rs. 1,590,000
► Rs. 90,000
► Rs. 390,000

Question No: 21 ( Marks: 1 ) - Please choose one
The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize:




► Conversion cost
► FOH cost
► Inventory cost
► Prime cost

Question No: 22 ( Marks: 1 ) - Please choose one
If management decides to buy in large quantities by placing few orders, it means




► Higher carrying cost and lower ordering cost
► Lower carrying cost and lower ordering cost
► Higher carrying cost and higher ordering cost
► Lower carrying cost and higher ordering cost

Question No: 23 ( Marks: 1 ) - Please choose one
Under Financial Accounting, what will be the impact of abnormal loss on the overall per unit cost?




► Per unit cost remain unchanged
► Abnormal loss has no relation to unit cost
► Per unit cost will increase
► Per unit cost will decrease

Question No: 24 ( Marks: 1 ) - Please choose one
Consider the given information.
Estimated FOH Rs. 100,000
Estimated Direct labour hours 50,000 Hours
Over applied FOH Rs. 50,000
Under applied FOH Rs. 15,000
Overhead absorption rate ?

► Rs. 2.00
► Rs. 1.00
► Rs. 0.30
► Rs. 5.00

Question No: 25 ( Marks: 1 ) - Please choose one
Blanket rate is also known as:




► Plant wide rate
► Departmental rate
► Over head absorption rate
► Factory overhead rate

Question No: 26 ( Marks: 1 ) - Please choose one
Budgeted factory overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 25,000 and variable rate Rs. 2.00 per hour.
Required:
Identify the amount of Budgeted Fixed Factory overhead.


► Rs. 65,000
► Rs.15, 000
► Rs. 20,000
► Rs. 12,500

Question No: 27 ( Marks: 1 ) - Please choose one
Job Code XYZ required total cost direct labour was Rs. 3,500 and direct labour was paid hourly @ Rs. 18. Production overhead was estimated at rate of Rs. 15 per direct labour hour.
Required:
Identify factory overhead cost with the help of above data.
► Rs. 2917 Approximately
► Rs. 194 Approximately
► Rs. 233 Approximately
► Rs. 270Approximately

Question No: 28 ( Marks: 1 ) - Please choose one
How costs can be accumulated in process-costing systems?




► Costs can be accumulated by product nature
► Costs can be accumulated by job nature
► Costs can be accumulated by department
► All of the given options

Question No: 29 ( Marks: 1 ) - Please choose one
Which of the given cost is NOT appeared in Cost of Production Report to calculate total cost?




► Material cost
► Labour cost
► Factory overhead cost
► None of the given options

Question No: 30 ( Marks: 1 ) - Please choose one
Department I of ABC manufacturing Company transferred 18,000 units to next department and unit cost of material, Labour and FOH is Rs. 2.00, Rs. 5.00 and Rs. 2.50 respectively.
Identify the cost transferred to next department with the help of given data.
► Rs. 36,000
► Rs. 45,000
► Rs. 90,000
► Rs. 171,000

Question No: 31 ( Marks: 1 ) - Please choose one
D Corporation uses process costing to calculate the cost of manufacturing Crunchies. During the month 12,500 units were completed and transferred out. 1,500 units remained in work in process at 25 percent completed.

Required: Identify how many equivalent units were produced?

► 12,500 units
► 12,875 units
► 14,250 units
► 12,125 units

Question No: 32 ( Marks: 1 ) - Please choose one
If a company uses a predetermined rate for the application of factory overhead, the idle capacity variance is the:
► Difference of absorbed factory overhead and budgeted factory overhead for capacity attained
► Over or under applied variable cost element of overheads
► Difference in budgeted costs and actual costs of fixed overheads items
► Difference in budgeted cost and actual costs of variable overheads items

Question No: 33 ( Marks: 1 ) - Please choose one
Identify the FOH rate on the basis of machine hour?

Budgeted production overheads Rs.280,000
actual machine hours 70,000 hours
Actual production overheads Rs.295,000


► Rs. 4.00
► Rs. 4.08
► Rs. 4.210
► Rs. 4.35

Question No: 34 ( Marks: 1 ) - Please choose one
Overhead absorption rate (OAR) can be calculated as:


► Direct labor cost /Direct Labor hours
► Estimated FOH/ Direct Labor hours
► Prime cost/ Estimated FOH
► Prime cost/ Direct labor cost

Question No: 35 ( Marks: 3 )
Barley Ltd produces a certain food item in a manufacturing process. On 1st November there was no opening stock in process. During November, 700 units of material were put in to process, with a cost of Rs, 20,000. Direct labor cost in November was Rs.15; 000.production overhead is absorbed at the rate of 300% of direct labor costs. Closing stock on 30th November consisted of 200 units which were 100% completed as to materials and 80% completed as to labor and over head.

Required: Calculate the quantity of units completed and transfer-out


Question No: 36 ( Marks: 5 )
The higher rate of labor turnover results in increased cost of production. Discuss the Effect of Labor Turnover.


Question No: 37 ( Marks: 5 )
Units
Units transferred to next department 40,000
Units still in process (all material, 2/3 labour & FO H) 8,000
Abnormal loss (1/2 complete as to material, Labour and FOH) 1,000

Following costs were added during the process.

Materials Rs.40,500
Labour 101,700
Factory overhead 50,500

Required:
You are required to calculate equivalent units of material, labour and factory overhead and unit cost of material, labour and factory overhead.


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PostSubject: Re: MGT 402 TODAY PAPER   Sat May 29, 2010 12:31 pm

Question No: 1 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following is added in purchases in order to get the value of Net purchases?

► Purchases returns

► Carriage inward

► Trade discount

► Rebates



Question No: 2 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. A typical factory overhead cost is:

► Distribution

► Internal audit

► Compensation of plant manager

► Design



Question No: 3 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Costs that change in response to alternative courses of action are called:

► Relevant costs

► Differential costs

► Target costs

► Sunk costs



Question No: 4 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following best describes the manufacturing costs?

► Direct materials, direct labor and factory overhead

► Direct materials and direct labor only

► Direct materials, direct labor, factory overhead, and administrative overhead

► Direct labor and factory overhead



Question No: 5 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. If, COGS = Rs. 50,000

GP Margin = 25% of sales

What will be the value of Sales?

► Rs. 200,000

► Rs. 66,667

► Rs. 62,500

► Rs. 400,000



Question No: 6 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following is correct?

► Units sold= Opening finished goods units + Units produced – Closing finished goods units

► Units Sold = Units produced + Closing finished goods units - Opening finished goods units

► Units sold = Sales + Average units of finished goods inventory

► Units sold = Sales - Average units of finished goods inventory



Question No: 7 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin?

► FIFO

► LIFO

► Weighted Average

► Cannot be determined



Question No: 8 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following would be the effect, if inventory is not properly measured?

► Expenses and revenues cannot be properly matched

► Unfair position in Financial Statements

► Inventory items show under or over stocking

► All of the given options



Question No: 9 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. If, Basic Salary Rs.10,000

Per Piece commission Rs. 5

Unit sold 700 pieces

What will be the total Salary?

► Rs. 3,500

► Rs. 13,500

► Rs. 10,000

► Rs. 6,500



Question No: 10 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. The term cost allocation is described as:

► The costs that can be identified with specific cost centers.

► The costs that can not be identified with specific cost centers.

► The total cost of factory overhead needs to be distributed among specific cost centers.

► None of the given options



Question No: 11 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. The term Cost apportionment is referred to:

► The costs that can not be identified with specific cost centers.

► The total cost of factory overhead needs to be distributed among specific cost centers but must be divided among the concerned department/cost centers.

► The total cost of factory overhead needs to be distributed among specific cost centers.

► None of the given options



Question No: 12 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Nelson Company has following FOH detail.

Budgeted (Rs.) Actual (Rs.)

Production Fixed overheads 36,000 39,000

Production Variable overheads 9,000 12,000

Direct labor hours 18,000 20,000

What would be the amount of under/over applied FOH

► Under applied by Rs.1,000

► Over applied by Rs.1,000

► Under applied by Rs.11,000

► Over applied by Rs.38,000



Question No: 13 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. PEL & co found that a production volume of 400 units corresponds to production cost of Rs, 10,000 and that a production volume of 800 units corresponds to production costs of Rs.12,000. The variable cost per unit would be?

► Rs. 5.00 per unit

► Rs. 1.50 per unit

► Rs. 2.50 per unit

► Rs. 0.50 per unit



Question No: 14 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following loss is expected in manufacturing process and represents a necessary cost of processing the marketable units?

► Operating loss

► Abnormal loss

► Normal loss

► Extraordinary loss



Question No: 15 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Under perpetual Inventory system at the end of the year:

► No closing entry passed

► Closing entry passed

► Closing value find through closing entry only

► None of the above.



Question No: 16 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. A company applied overheads on machine hours which were budgeted at 11,250 with overhead of Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692. Overhead were?

► Over applied by Rs.4, 058

► Under applied by Rs.2, 152

► Under applied by Rs.4, 058

► Over applied by Rs.2, 152



Question No: 17 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. The components of total factory cost are:

► Direct Material + Direct Labor

► Direct Labor + FOH

► Prime Cost only

► Prime Cost + FOH



Question No: 18 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?

► First to be allocated to the ending inventory

► Last to be allocated to the cost of goods sold

► Last to be allocated to the ending inventory

► First to be allocated to the cost of good sold



Question No: 19 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following is NOT an assumption of the basic economic-order quantity model?

► Annual demand is known

► Ordering cost is known

► Carrying cost is known

► Quantity discounts are available



Question No: 20 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the following is NOT reason of abnormal loss?


► Defective material used

► Machine breakdown

► Poor workmanships

► Natural disaster



Question No: 21 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Complete the following table when activity level increases above the normal level:
Per unit Total
Fixed cost Increase Constant
Variable cost ? ?
Total cost Increase Decrease


► Decrease, Decrease

► Increase, Increase

► Constant, Increase

► Increase, Decrease



Question No: 22 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. You are required to calculate number of units sold of ABC Fans Company for the first quarter of the year with the help of given information.
Inventory opening
Finished goods (100 fans) Rs. 43000
Direct material Rs. 268000
Inventory closing
Finished goods (200 fans) Not known
Direct material Rs. 167000
No of units manufactured 567 units


► 300 units

► 767 units

► 467 units

► 667 units



Question No: 23 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Given data that:

Work in Process Opening Inventory Rs. 20,000

Work in Process Closing Inventory 10,000

Finished goods Opening Inventory 30,000

Finished goods Closing Inventory 50,000

Cost of goods sold 190,000

What will be the value of cost of goods manufactured?

► Rs. 200,000

► Rs. 210,000

► Rs. 220,000

► Rs. 240,000



Question No: 24 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. In cost accounting, unavoidable loss is charged to which of the following?




► Factory over head control account

► Work in process control account

► Marketing overhead control account

► Administration overhead control account



Question No: 25 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Payroll includes:

► Salaries & Wages of direct labor

► Salaries & Wages of Indirect labor

► Salaries & Wages of Administrative staff

► Salaries & Wages of direct labor, Indirect labor, and Administrative & Selling Staff



Question No: 26 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Which of the given statement is CORRECT for Indirect Labor?




► It is charged to factory over head account

► It is charged to work in process

► It is entire production

► It is charged to administrative expenses



Question No: 27 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. A production worker paid salary of Rs. 700 per month plus an extra Rs. 5 for each unit produced during the month. This labor cost is best described as:

► A fixed cost

► A variable cost

► A semi variable cost

► A step fixed cost



Question No: 28 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Calculate Estimated FOH with the help of given data:
Estimated Direct labour hours 50,000 Hours
Over applied FOH Rs. 5,000
Under applied FOH Rs. 15,000
Overhead absorption rate Rs. 5.00/hour


► Rs. 25,000

► Rs. 50,000

► Rs. 75,000

► Rs. 250,000



Question No: 29 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. In which of the situation spending variance will give unfavorable result?




► Actual factory overhead is less than absorbed factory overhead

► Actual factory overhead is greater than absorbed factory overhead

► Budgeted factory overhead for actual volume is less than actual factory overhead

► Absorbed factory overhead less than budgeted factory overhead for actual volume



Question No: 30 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. All the given statements regarding job cost sheets are incorrect EXCEPT:



► Job cost sheet shows only direct materials cost on that specific job

► Job cost sheet must show the selling costs associated with a specific job

► Job cost sheet must show the administrative costs associated with a specific job

► Job cost sheet shows direct materials cost, direc labour cost and factory overhead costs associated with a specific job



Question No: 31 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. In process costing, each producing department is a:




► Cost unit

► Cost centre

► Investment centre

► Sales centre



Question No: 32 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. With reference to cost of production report, cost accounted for as follows is also known as:



► Cost reconciliation

► Bank reconciliation

► Cash reconciliation

► Capital reconciliation



Question No: 33 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Identify units transferred out with the help of given data:
Units
Units still in process (100%material, 75% conversion ) 4,000
Lost units 2,000
Units started in process 50,000



► 6,000 units

► 44,000 units

► 52,000 units

► 56,000 units



Question No: 34 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. Details of the process for the last period are as follows:
Put into process 5,000 kg
Materials Rs. 2,500
Labor Rs.700
Production overheads 200% of labor


Normal losses are 10% of input in the process. The out put for the period was 4,200 Kg from the process. There was no opening and closing Work- in- process. What were the units of abnormal loss?


► 500 units

► 300 units

► 200 units

► 100 units



Question No: 35 ( Marks: 3 )

Your browser may not support display of this image. 50, 000 units were received from preceding department, 9,000 units were still in process at the end of month (complete all material, 75% Labour & FOH). 500 lost units were 60% complete as to material and conversion costs. This loss is considered as abnormal and is to be charged to factory overhead.

Required: You are required to calculate equivalent units of material, labour and factory overhead.



Question No: 36 ( Marks: 5 )

Your browser may not support display of this image. Irfan Industries Limited has two production departments A and B and two mutually interdependent service departments X and Y. Cost of service departments is apportioned on the basis of following %ages:
A B X Y
Service department X 50% 30% - 20%
Service department Y 40% 50% 10% -


Following figures of departmental costs are available after the primary distribution:
Department A 15,750 Department B 7,500
Department X 11,750 Department Y 5,000


Calculate total factory overhead of production department by preparing a work sheet showing the secondary distribution using Repeated apportionment method.




Question No: 37 ( Marks: 5 )

Your browser may not support display of this image. Factory overhead absorption rate of a pharmaceutical is Rs 2.50. Budgeted Factory overhead at two activity levels is as follows for that period.
Activity level Budgeted factory overhead
Low 20,000 Hours Rs. 45,000
High 40,000 Hours Rs. 75,000

Actual Factory overhead for that period was Rs. 42,000 and actual volume was 25,000 hours.

Required:

1. Variable factory overhead absorption rate
2. Budgeted variable factory overhead at high activity level 40,000 hours.
3. Budgeted fixed factory overhead


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PostSubject: Re: MGT 402 TODAY PAPER   Sun May 30, 2010 2:34 pm

Question
No: 1 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
statement measures the financial position of the entity on particular time?






► Income Statement


► Balance Sheet


► Cash Flow Statement


► Statement of Retained Earning





Question
No: 2 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Net sales were Rs.
360,000. The cost of goods sold was Rs. 180,000. Operating expenses were Rs.
120,000. The ending balance of the Accounts Receivable was Rs. 20,000. The
merchandise turnover ratio was 12.75. What was the Net profit ratio?



► 16.67%


► 20.0%


► 40.0%


► 33.3%





Question
No: 3 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The net sales of the
business totals Rs. 200,000 and the Cost of Goods Sold for the same period
totals Rs.146,000. What is the gross margin ratio?



► 0.22


► 0.25


► 0.27


► 0.33





Question
No: 4 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] “Taking steps for the
fresh purchase of those stocks which have been exhausted and for which
requisitions are to be honored in future” is an easy explanation of:



► Over stocking


► Under stocking


► Replenishment of stock


► Acquisition of stock





Question
No: 5 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is a period cost?




► Direct materials




► Indirect materials




► Factory utilities




► Administrative expenses






Question
No: 6 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is

CORRECT

to calculate cost of goods manufactured?






► Direct labor costs plus total
manufacturing costs




► The beginning work in process inventory plus total manufacturing costs
and subtract the ending work in process inventory



► Beginning raw materials inventory plus
direct labor plus factory overhead



► Conversion costs and work in process
inventory adjustments results in cost of goods manufactured






Question
No: 7 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] If, Sales = Rs. 1200,000



Markup
= 20% of cost



What
would be the value of Gross profit?



► Rs. 200,000


► Rs. 100,000


► Rs. 580,000


► Rs. 740,000





Question
No: 8 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
cost is used in the calculation of cost per unit?



► Total production cost


► Cost of goods available for sales


► Cost of goods manufactured


► Cost of goods Sold





Question
No: 9 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is correct?



► Units sold= Opening finished goods
units + Units produced – Closing finished goods units



► Units Sold = Units produced + Closing
finished goods units - Opening finished goods units



► Units sold = Sales + Average units of
finished goods inventory



► Units sold = Sales - Average units of
finished goods inventory






Question
No: 10 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] If EOQ = 360 units,
order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what
is the usage in units?



► 2,592 units


► 25,920 units


► 18,720 units


► 129,600 units





Question
No: 11 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Basic pay + bonus pay +
overtime payment is called:



► Net pay


► Gross pay


► Take home pay


► All of the given options





Question
No: 12 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] A Blanket Rate is:


► A single rates which used throughout
the organisation departments



► A double rates which used throughout
the organisation departments



► A single rates which used in different
departments of the organisation.



► None of the Given





Question
No: 13 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] When a manufacturing
Company has highly automated manufacturing plant producing many different
products, the most appropriate basis for applying FOH cost to work in process
is:



► Direct labor hours


► Direct labor costs


► Machine hours


► Cost of material used





Question
No: 14 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Capacity Variance /
Volume Variance arises due to







► Difference between Absorbed factory overhead and budgeted factory for
capacity attained




► Difference between Absorbed factory overhead and absorption rate



► Difference between Budgeted factory
overhead for capacity attained and FOH
actually incurred



► None of the given options





Question
No: 15 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
industries would most likely use a Process cost Accounting system?



► Construction


► Beer


► Hospitality


► Consulting





Question
No: 16 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which cost accumulation
procedure is best suited to a continuous mass production process of similar
units?



► Job order costing


► Process costing


► Standard costing


► Actual costing





Question
No: 17 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] LG has incurred cost of
Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs.
70,000 for factory overhead. There was no beginning and ending work in process.
7,500 units were completed and transferred out. What would be the unit cost for
material?




► Rs. 22


► Rs. 16


► Rs. 14


► Rs. 8





Question
No: 18 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Under perpetual
Inventory system the Inventory is treated as:



► Assets


► Liability


► Income


► Expense





Question
No: 19 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] During the year 60,000
units put in to process.55, 000 units were completed. Closing WIP were 25,000
units, 40% completed. How much the equivalent units of output would be
produced?






► 25,000 units


► 10,000 units


► 65,000 units


► 80,000 units





Question
No: 20 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The FIFO inventory
costing method (when using a perpetual inventory system) assumes that the cost
of the earliest units purchased is allocated in which of the following ways?




First to be allocated to the ending inventory



► Last to be allocated to the cost of
goods sold



► Last to be allocated to the ending
inventory



► First to be allocated to the cost of
good sold






Question
No: 21 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] In cost Accounting,
abnormal loss is charged to:



► Factory overhead control account


► Work in process account


► Income Statement


► Entire production





Question
No: 22 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The following
information is available for ABC Co.



Marketing expenses

Rs. 300,000

Ending inventory of
finished goods


Rs. 90,000

The cost of goods sold


500 % of Marketing
expense


The cost of goods
available for sale


?








► Rs. 300,000


► Rs. 1,590,000


► Rs. 90,000


► Rs. 390,000





Question
No: 23 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] TO whom purchase order
form is issued to place an order?



► Work station incharge


► Store incharge


► Supplier


Manager





Question
No: 24 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the given
payroll incentive does not relate to production?















► Commission


► Shift allowance


► Over time payment


► Bonus





Question
No: 25 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Consider the following
data:




Salary

Rs.5000

Per Piece
commission


10 % per piece

Unit sold

700 pieces

Price per piece

Rs. 10

Amount of commission
received


?







► Rs. 100


► Rs. 500


► Rs. 600


► Rs. 700





Question
No: 26 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Factory overhead should
be allocated on the basis of:















► Conversion cost


► An activity basis which relates to
cost incurrence



► Direct labor costs


► Prime cost





Question
No: 27 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] In which of the
situation spending variance will give favorable result?















► Actual factory overhead is less than
absorbed factory overhead



► Actual factory overhead is greater
than absorbed factory overhead



► Budgeted factory overhead for actual
volume is greater than actual factory overhead



► Absorbed factory overhead less than budgeted
factory overhead for actual volume






Question
No: 28 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] When cost of production
report is prepared?















► It is prepared at the end of each
costing period



► It is prepared during each costing
period



► It is prepared at the start of each
costing period



► It can be prepared at any time





Question
No: 29 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Production process may
result into spoiled or lost units. This lost unit may result into which of the
following category/categories?















► Normal loss


► Abnormal loss


► Unavoidable loss


► All of the given options





Question
No: 30 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] In process accounting,
avoidable losses are valued:















► At their scrap value


► Same as good units/production


► At the value of labour cost


► At the value of material cost





Question
No: 31 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Identify units
transferred out with the help of given data:









Units

Units still in process (100%material, 75% conversion )

4,000

Lost units

2,000

Units started in
process


50,000










► 6,000 units


► 44,000 units


► 52,000 units


► 56,000 units





Question
No: 32 ( Marks: 1 ) - Please choose one




[You must be registered and logged in to see this image.] Lost units (Normal
loss)


500 units

Units received from
preceding department


13,500 units

Units completed in
this department


11,750 units







Required:
Identify
units still in process with the help of above data.






► 1,250 units


► 14,000 units


► 12,250 units


► 1,750 units





Question
No: 33 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The net profit or net
loss for a particular time period is calculated in which of the given
statement?



► Cost of goods manufactured statement



► Bank reconciliation statement



► Income statement



► Bank statement






Question
No: 34 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Overhead absorption rate
(OAR) can be calculated as:










► Direct labor cost /Direct Labor hours



► Estimated FOH/ Direct Labor hours


► Prime cost/ Estimated FOH


► Prime cost/ Direct labor cost





Question
No: 35 ( Marks: 3 )



[You must be registered and logged in to see this image.] Units transferred out to
next department 20,000 units. Units lost at beginning of production 500
units. Units in process 2,500 units
which were complete as to materials, 1/2 complete as to labor and factory
overhead.






Required: Prepare the Quantity
Schedule









Question
No: 36 ( Marks: 5 )



[You must be registered and logged in to see this image.] Patacake Ltd produces a
certain food item in a manufacturing process. On 1st November there was no
opening stock in process. During November, 500 units of material were put in to
process, with a cost of Rs, 9,000. Units completed and transferred-out were 400
units. Direct labor cost in November was R.3840. Production overhead is
absorbed at the rate of 200% of direct labor costs. Closing stock on 30th
November consisted of 100 units which were 100% completed as to materials and
80% completed as to labor and over head.






Required: The full production
cost of completed units during November?









Question
No: 37 ( Marks: 5 )



[You must be registered and logged in to see this image.] Ali Company estimates
its factory overhead for the next period at Rs. 64,000. It is estimated that 30,000 units will be
produced at material cost of Rs. 65,000. Production will require 25,000 direct
labor hours at an estimated cost of Rs. 130,000. The machine will run about
18,000 hours.



Required: the predetermined
factory overhead rate based on:



i.
Units of production


ii.
Direct labor hours


iii.
Machine hours


iv. Direct labour cost


v.
Material cost


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PostSubject: Re: MGT 402 TODAY PAPER   Mon May 31, 2010 4:25 pm

Question No: 1
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the following cost is
linked with the calculation of cost of inventories?



► Product cost


► Period cost


► Both product and period cost


► Historical cost





Question No: 2
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] You made Rs. 10,000 loan to your
cousin's company. At the end of one year, the company returned to you Rs.
10,850. The Rs. 850 is called which one of the following?




► Increases in loan


► Increases in dividends



An 8.5% return on investment



► All of the given options





Question No: 3
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Machine lubricant used on
processing equipment in a manufacturing plant would be classified as a:






► Period cost (manufacturing overhead)


► Period cost (Selling, General &
Admin)



► Product cost (manufacturing overhead)


► Product
cost (Selling, General & Admin)






Question No: 4
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] An average cost is also known as:



► Variable cost


► Unit cost


► Total cost


► Fixed cost





Question No: 5
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Finished goods inventory costs
represent the costs of goods that are:



► Currently being worked on


► Waiting to be worked on


► Waiting to be sold


► Already delivered to customers





Question No: 6
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the following is
deducted from purchases in order to get the value of Net purchases?




Purchases returns




Carriage inward



► Custom
duty



► All of
the given options






Question No: 7
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the following is
correct?



► Units
sold= Opening finished goods units + Units produced – Closing finished goods
units



► Units
Sold = Units produced + Closing finished goods units - Opening finished goods
units



► Units
sold = Sales + Average units of finished goods inventory



► Units
sold = Sales - Average units of finished goods inventory






Question No: 8
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] In cost Accounting, normal loss
is/are charged to:



► Factory
overhead control account



► Work in
process account



► Income
Statement



► All of
the given options






Question No: 9
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Material requisition is a
document that supports the requirement of the material. This document is sent
to store incharge and approved by:



► Store
manager




Production manager




Supplier manager




Purchase manager






Question No: 10
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Over applied FOH will always
result when a predetermined FOH rate is applied and:




Production is greater than defined capacity



► Actual
overhead costs are less than budgeted




Budgeted capacity is less than normal capacity



► Actual
overhead incurred is less than applied Overhead






Question No: 11
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the following would be
considered as factory overhead using a job order cost system?



► Direct
materials



► Direct
labor




Depreciation on factory buildings



► Salesperson's
salary






Question No: 12
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] At the end of the accounting
period, a production department manager submits a production report that shows
all of the following
EXCEPT:


► Number
of units in the beginning work in process



► Number
of units sold



► Number
of units in the ending work in process and their estimated stage of completion



► Number
of units completed






Question No: 13
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] In order to compute equivalent
units of production, which of the following must be reasonably estimated?




► Units


► The
percentage of completion



► Direct
material cost



► Units
started and completed






Question No: 14
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] When 10,000 ending units of
work-in-process are 30% completed as to conversion, it means:



► 30% of
the units are completed



► 70% of
the units are completed



► Each
unit has been completed to 70% of its final stage



► Each of
the units is 30% completed






Question No: 15
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] LG has incurred cost of Rs.
60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000
for factory overhead. There was no beginning and ending work in process. 7,500
units were completed and transferred out. What would be the unit cost for
material?



► Rs. 22


► Rs. 16


► Rs. 14


► Rs. 8





Question No: 16
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] 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?









► 2,175
kg



► 2,250
kg



► 2,425
kg



► 2,500
kg






Question No: 17
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] If the cost per equivalent unit
is Rs. 1.60. The equivalent units of output are 50,000. The WIP closing stock
is 10,000 units, 40% completed. What will be the value of closing stock?




► Rs.
9,600



► Rs.
80,000



► Rs.
16,000



► Rs.
6,400






Question No: 18
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the given cost does not
become the part of cost unit?




Advertising expenses



► Direct
labor cost



► Factory
overhead cost



► Cost of
raw material






Question No: 19
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the given cost becomes
the part of cost unit?



► Direct
material cost



► Factory
overhead



► Direct
labor cost



► All of
the given options






Question No: 20
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] The main difference between the
profit center and investment center is:




Decision making



► Revenue
generation



► Cost
incurrence




Investment






Question No: 21
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] The Economic Order Quantity is
the amount of inventory to be ordered at one time for purpose to minimize:
















Conversion cost



► FOH
cost




Inventory cost



► Prime
cost






Question No: 22
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] The annual demand for a stock
item is 2,500 units. The cost of placing an order is Rs. 80 and the cost
holding an item in stock is for one year is Rs. 15.



Required: What is the EOQ?


► 163
units



► 1250
units



► 5,000
units



► 160
units






Question No: 23
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] TO whom purchase order form is
issued to place an order?



► Work
station incharge



► Store
incharge




Supplier



Manager





Question No: 24
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] What type of information CANNOT
get from bin card?



► It
provides the information for Reorder level



► It
provides the information for Economic order quantity



► It
provides the information for Maximum
daily consumption


► It
provides the information for Cost of material consumed






Question No: 25
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the following groups of
workers would be classified as indirect labor?










Machinists in an organization manufacturing clothes




Bricklayers in a house building company



► Maintenance workers in a shoe factory


► None of
the given options






Question No: 26
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Taylor's
Differential Piece Rate Plan based on _____________piece rates is fixed.















► Two


► Three


► Four


► Five





Question No: 27
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Meerick Differential Piece Rate
Plan based on _____________piece rates is fixed.



► Two


► Three


► Four


► Five





Question No: 28
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Depreciation of building expense
is an example of factory overhead which is apportioned on the basis of:















► Capital
value



► Departmental
payroll



► Area in
square feet or cubic feet



► Number
of workers






Question No: 29
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Maintenance and repair of plant
and machinery can be apportioned on the basis of:















► Capital
value




Departmental payroll



► Area in
square feet or cubic feet



► Number
of workers






Question No: 30
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Calculate predetermined factory
overhead absorption rates with the help of given data.






Items

Budgeted
figure


Actual
Figures


Factory
overhead (Rs)


1,200,000

----

Machine
hours


200,000

28,000





► Rs.
43.00



► Rs.
0.20



► Rs.
6.00



► Rs. 14





Question No: 31
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] In which of the situation
spending variance will give favorable result?















► Actual
factory overhead is less than absorbed factory overhead



► Actual
factory overhead is greater than absorbed factory overhead




Budgeted factory overhead for actual volume is greater than actual factory
overhead




Absorbed factory overhead less than budgeted factory overhead for actual volume






Question No: 32
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] If absorbed factory overhead is
Rs.155,000 and Budgeted factory overhead for actual volume is Rs. 110,000 then
difference of both will be:







Unfavorable Spending variance of Rs. 45,000




Favorable Spending variance of Rs. 45,000




Favorable Volume variance of Rs. 45,000




Favorable Budget variance of Rs. 45,000






Question No: 33
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Which of the given is CORRECT
for accounting entry of closing balance of Work In
Process (WIP)?















► WIP a/c
Dr and Inventory a/c Cr




Inventory a/c Dr and WIP a/c Cr



► WIP a/c
Dr and payroll a/c Cr



► There is
no accounting entry for closing balance of WIP






Question No: 34
( Marks: 1 ) - Please choose
one



[You must be registered and logged in to see this image.] Greenwood
petroleum has the data for the year was as follow:







Lost
units (Normal Loss)


200


Introduced
units during the year


67,00

Units
in process


15,00








Identify
how many units were completed and transferred out during this period?




1,700 units




5,000 units




1,500 units



► 6,900
units






Question No: 35
( Marks: 3 )



[You must be registered and logged in to see this image.] Schlamber Company Factory
overhead rate is Rs.2 per hour. Budgeted overhead for 3,000 hours per month is
Rs. 8,000 and 7,000 hours is Rs. 12,000. Actual factory overhead for the month
was Rs.9, 000 and actual volume was 5,000 hours.






Required:


1. Applied
overhead



2. Over-or
under applied overhead.









Question No: 36
( Marks: 5 )



[You must be registered and logged in to see this image.] Irfan Industries Limited has two
production departments A and B and two mutually interdependent service
departments X and Y. Cost of service departments is apportioned on the basis of
following %ages:









A

B

X

Y

Service
department X


50%

30%

-

20%

Service
department Y


40%

50%

10%

-







Following
figures of departmental costs are available after the primary distribution:







Department
A


15,750

Department
B


7,500

Department
X


11,750

Department
Y


5,000







Calculate total
factory overhead of production department by preparing a work sheet showing the
secondary distribution using Repeated apportionment method.












Question No: 37
( Marks: 5 )



[You must be registered and logged in to see this image.] PA limited operates a job costing
system. The company standard sale price is predetermined Rs. 505 based on cost
plus 20% profit margin. The estimated cost for Job # 141 is as follows:







Direct
material


5 meters@ Rs.20 per meter

Direct
labor


14
hours@ Rs. 8.00 per hour








Production
overhead for the year are budgeted to be Rs.200,000 and are to be recovered on
the basis of the total 40,000 direct labor hour for the year.



Required:



v
Calculate Cost of Goods Sold for
job # 141



v
Calculate amount of profit for
job #141


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PostSubject: Re: MGT 402 TODAY PAPER   Mon May 31, 2010 4:27 pm

Question
No: 1 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Cost of incoming freight
on merchandise to be sold to customers by a retail chain would be considered by
that merchandiser to be:



► Prime costs


► Inventoriable costs


► Period costs


► None of the given options





Question
No: 2 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Net sales = Sales less:


► Sales returns


► Sales discounts


► Sales returns & allowances


► Sales returns & allowances and
sales discounts






Question
No: 3 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Cost accounting concepts
include all of the following
EXCEPT:



► Planning



► Controlling



► Sharing




► Costing






Question
No: 4 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is a cost that changes in proportion to changes in volume?







► Fixed cost




► Sunk cost




► Opportunity cost



► None of the given options





Question
No: 5 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Finished goods inventory
costs represent the costs of goods that are:




► Currently being worked on




► Waiting to be worked on




► Waiting to be sold




► Already delivered to customers






Question
No: 6 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] According to IASB
framework, Financial statements exhibit its users the:



► Financial position


► Financial performance


► Cash inflow and outflow analysis


► All of the given options





Question
No: 7 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] If, COGS = Rs. 50,000


GP Margin = 25% of sales



What
will be the value of Sales?



► Rs. 200,000


► Rs. 66,667


► Rs. 62,500


► Rs. 400,000





Question
No: 8 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is correct?



► Units sold= Opening finished goods
units + Units produced – Closing finished goods units



► Units Sold = Units produced + Closing
finished goods units - Opening finished goods units



► Units sold = Sales + Average units of
finished goods inventory



► Units sold = Sales - Average units of
finished goods inventory






Question
No: 9 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
would be the effect, if inventory is not properly measured?



► Expenses and revenues cannot be
properly matched



► Unfair position in Financial
Statements



► Inventory items show under or over
stocking



► All of the given options





Question
No: 10 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] If EOQ = 360 units,
order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what
is the usage in units?



► 2,592 units


► 25,920 units


► 18,720 units


► 129,600 units





Question
No: 11 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Basic pay + bonus pay +
overtime payment is called:



► Net pay


► Gross pay


► Take home pay


► All of the given options





Question
No: 12 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
is a reason for the overtime to be incurred?



► Make up for lost time


► Produce more of the product than
anticipated



► Increase efficiency of the workers


► Both for make up of lost time and
produced more product than anticipated






Question
No: 13 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Where there is mass
production of homogeneous units or where few products are produced in batches,
which of the following cost driver would be regarded as best base for the
determination of Factory overhead absorption rate?



► Number of units produced


► Labor hours


► Prime cost


► Machine hours





Question
No: 14 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The Process of cost
apportionment is carried out so that:







► 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
No: 15 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Nelson Company has following
FOH detail.




Budgeted (Rs.) Actual (Rs.)


Production Fixed overheads 36,000 39,000


Production Variable overheads 9,000 12,000


Direct labor hours 18,000 20,000





What would be the amount of under/over
applied FOH






► Under applied by Rs.1,000


► Over applied by Rs.1,000


► Under applied by Rs.11,000


► Over applied by Rs.38,000





Question
No: 16 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the following
would be considered a major aim of a job order costing system?



► To determine the costs of producing
each job



► To compute the cost per unit


► To include separate records for each
job to track the costs



► All of the given options





Question
No: 17 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] At the end of the
accounting period, a production department manager submits a production report
that shows all of the following
EXCEPT:


► Number of units in the beginning work
in process



► Number of units sold


► Number of units in the ending work in
process and their estimated stage of completion



► Number of units completed





Question
No: 18 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] LG has incurred cost of
Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs.
70,000 for factory overhead. There was no beginning and ending work in process.
7,500 units were completed and transferred out. What would be the unit cost for
material?




► Rs. 22


► Rs. 16


► Rs. 14


► Rs. 8





Question
No: 19 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] In a process costing
system, the journal entry used to record the transfer of units from Department
A, a processing department, to Department B, the next processing department, includes
a debit to:




► Work in Process Department A and a
credit to Work in Process Department B



► Work in Process Department B and a
credit to Work in Process Department A



► Work in Process Department B and a
credit to Materials




Finished Goods and a credit to Work in Process Department B






Question
No: 20 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] FIFO is the abbreviation of:


► Final Interest-Free Option


► First in First out Method


► None of the given options


► Fixed income Financial Operations





Question
No: 21 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] A company applied
overheads on machine hours which were budgeted at 11,250 with overhead of
Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692.
Overhead were?






► Over applied by Rs.4, 058


► Under applied by Rs.2, 152


► Under applied by Rs.4, 058


► Over applied by Rs.2, 152





Question
No: 22 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the given cost
does not become the part of cost unit?



► Advertising expenses


► Direct labor cost


► Factory overhead cost


► Cost of raw material





Question
No: 23 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Imputed cost is also called


► Explicit cost


► Implicit cost


► Firm cost


► Period cost





Question
No: 24 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The journal entry of
Material purchase on credit under perpetual inventory system is:












► Inventory account (Dr) Material
account (Cr)



► Account payable (Dr.) Purchases
account (Cr)



► Inventory account (Dr) Account payable
account (Cr)



► Purchases account (Dr) Accounts
payable account (Cr)






Question
No: 25 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] The annual demand for a
stock item is 2,500 units. The cost of placing an order is Rs. 80 and the cost
holding an item in stock is for one year is Rs. 15.



Required: What is the EOQ?


► 163 units


► 1250 units



5,000 units



► 160 units





Question
No: 26 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Working hours of labor
can be calculated with the help of all
EXCEPT:














► Smart card


► Time sheet


► Store card


► Clock card





Question
No: 27 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Inventory of Rs. 96,000
was purchased during the year. The cost of goods sold was Rs. 90,000 and the
ending inventory was Rs. 18,000. What was the inventory turnover ratio for the
year?



► 5.0 times


► 5.3 times


► 6.0 times


► 6.4 times





Question
No: 28 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Gross pay ÷ ____________
=Effective wage rate



► Actual hours worked


► Time allowed


► Time saved


► None of the given options





Question
No: 29 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Which of the given
statement is

CORRECT
for
factory overhead cost?















► It is direct production cost.


► It is prime cost.


► It is conversion cost.


► It is an indirect production cost.





Question
No: 30 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Depreciation of building
expense is an example of factory overhead which is apportioned on the basis
of:















► Capital value


► Departmental payroll


► Area in square feet or cubic feet


► Number of workers





Question
No: 31 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Budgeted fixed factory
overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 30,000 and
variable rate Rs. 8.00 per hour.



Required:


Identify the amount of
Budgeted Factory overhead.



► Rs. 10,000


► Rs.
5, 000



► Rs. 70,000


► Rs. 3,750





Question
No: 32 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Cost of production report
summarizes data of:















► Quantities produced by producing
department only



► Cost incurred by producing department
only



► Quality of purchased units only


► Quantities produced and Cost incurred
by producing department






Question
No: 33 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] Production process may
result into spoiled or lost units. This lost unit may result into which of the
following category/categories?















► Normal
loss



► Abnormal loss


► Unavoidable loss


► All of the given options





Question
No: 34 ( Marks: 1 ) - Please choose one



[You must be registered and logged in to see this image.] It is assumed that Rs.
1,000 incurred to produce 100 units but after inspection it came to know that
10 units were lost. Then Rs. 1,000 will be spread over:












► 10 units


► 100 units


► 90 units


► 110 units





Question
No: 35 ( Marks: 3 )



[You must be registered and logged in to see this image.] What is the
justification of spreading the cost of lost units over the remaining goods
units?






Question
No: 36 ( Marks: 5 )



[You must be registered and logged in to see this image.] The higher rate of labor
turnover results in increased cost of production. Discuss the Effect of Labor
Turnover.









Question
No: 37 ( Marks: 5 )



[You must be registered and logged in to see this image.] PA limited operates a
job costing system. The company standard sale price is predetermined Rs. 505
based on cost plus 20% profit margin. The estimated cost for Job # 141 is as
follows:







Direct material

5
meters@ Rs.20 per meter


Direct labor

14 hours@ Rs. 8.00 per
hour








Production overhead for the year are
budgeted to be Rs.200,000 and are to be recovered on the basis of the total
40,000 direct labor hour for the year.



Required:


v
Calculate Cost of Goods Sold for job # 141


v
Calculate amount of profit for job #141


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Malaika.



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PostSubject: Re: MGT 402 TODAY PAPER   Tue Jun 01, 2010 8:03 pm

kindly provide it's solution.
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PostSubject: Re: MGT 402 TODAY PAPER   Today at 9:44 pm

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