Approaches used to allocate joint costs include
A. sales value at split off method
B. net realizable value method
C. constant gross margin percentage NRV method
D. all of above
Select an option to see the answer and solution.
Net realizable value is added into separate costs to calculate
A. split off costs
B. final cost of direct labour
C. final sales
D. final costs
Select an option to see the answer and solution.
Gross margin percentage in constant gross-margin percentage NRV method is based on
A. total labour costs
B. total production
C. total revenues
D. total costs
Select an option to see the answer and solution.
Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute
A. Gross margin percentage
B. total production cost of each product
C. allocated joint costs
D. cost of split off point
Select an option to see the answer and solution.
An expected future cost which diverges in unconventional course of action is known as
A. partial cost
B. total cost
C. irrelevant cost
D. relevant cost
Select an option to see the answer and solution.
If net realizable value is 20000 an d se p a r ab l ecos t s a r e 18000, then final sales will be
A. $20,000
B. $18,000
C. $2,000
D. $38,000
Select an option to see the answer and solution.
Value of sales considers sales value at split off method is of
A. entire direct material of accounting period
B. entire production of accounting period
C. portion of production of accounting period
D. entire indirect material of accounting period
Select an option to see the answer and solution.
Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called
A. spoilage
B. rework
C. scrap
D. equivalence
Select an option to see the answer and solution.
In process and job costing system, normal spoilage cost is considered as
A. conversion costs
B. sunk costs
C. inventoriable costs
D. non inventoriable costs
Select an option to see the answer and solution.
Types of spoilage include
A. normal spoilage
B. abnormal spoilage
C. weighted spoilage
D. both a and b
Select an option to see the answer and solution.
Which one of following is an example of spoilage?
A. short lengths from wood work
B. defective aluminium cans recycled by manufacturer
C. detection of defective pieces before shipment
D. all of above
Select an option to see the answer and solution.
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate
A. normal spoilage rates
B. abnormal spoilage rates
C. normal scrap rates
D. abnormal scrap rates
Select an option to see the answer and solution.
An amount of spoilage that is not natural in a specific production process is categorized as
A. normal scrap
B. normal spoilage
C. abnormal spoilage
D. weighted spoilage
Select an option to see the answer and solution.
Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate
A. Gross weighted spoilage
B. inventoriable spoilage
C. partial spoilage
D. total spoilage
Select an option to see the answer and solution.
Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as
A. rework point
B. inspection point
C. spoilage point
D. scrap point
Select an option to see the answer and solution.
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as
A. reduced work
B. spoilage
C. rework
D. scrap
Select an option to see the answer and solution.
An example of rework is
A. short lengths from wood work
B. defective aluminium cans recycled by manufacturer
C. detection of defective pieces before shipment
D. none of above
Select an option to see the answer and solution.
If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be
A. 245.1724
B. 255.1724
C. 278.1724
D. 268.1724
Select an option to see the answer and solution.
Aspects of accounting for scrap includes
A. physical tracking
B. non-inventoriable costing
C. inventory costing
D. both a and c
Select an option to see the answer and solution.
Normal spoilage is subtracted from total spoilage to calculate
A. abnormal spoilage
B. Gross weighted spoilage
C. inventoriable spoilage
D. partial spoilage
Select an option to see the answer and solution.