Aat Level 2 Basic Costing Assignment 2

18 Questions  I  By Woodfrank on May 6, 2013
Before attempting this assignment you should have read chapters 1 and 4 of your Osborne Book ”BASIC COSTING" and attempted the chapter activities  in your WORKBOOK.       The pass mark for the assignment  is 70% - should you fail then please review the areas where you are weak. If you are still having problems then please do not hesitate to contact AATFree   Good Luck!

  
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1.  The materials bought by manufacturing organisations and used to manufacture the finished products  are called:
A.
B.
C.
D.
2.  Partly-completed items in a manufacturing organisation are called:  
A.
B.
C.
D.
3.  Items that have been manufactured and are ready for sale are called:
A.
B.
C.
D.
4.  A method of inventory valuation that assumes that goods be used up in the order that they are acquired (for valuation  purposes only); this means that the remaining balance will be valued based on the prices of more recent purchases, is called:  
A.
B.
C.
D.
5.  A method of inventory valuation that assumes that the most  recently acquired inventory will be used first, leaving the earlier acquisitions to make up the value of the remaining  balance, is called  
A.
B.
C.
D.
6.  A method of inventory valuation method that involves calculating a new weighted average cost of goods each time that a new  purchase is made, and using this valuation for subsequent issues and balances until further purchases are made, is called:  
A.
B.
C.
D.
7.  A Manufacturing account  cost statement is produced at the end of a period to summarise costs under various categories.  
A.
B.
8.  Direct materials  is calculated as the total of opening inventory of raw  materials, less materials purchased, minus closing inventory  of raw materials.  
A.
B.
9.  _________ cost is the total of direct costs – in a manufacturing account it is  calculated by adding direct materials used in manufacture to  direct labour.  
10.  A subtotal made up of the total of prime cost (direct materials and direct labour) and manufacturing overheads is called  
A.
B.
C.
11.  From the following figures calculate the closing inventory-in-trade that would be shown using  FIFO, BOUGHT SOLD January 120 @  £16 each June 125 @ £22 each April 80 @ £18 each November 210 @ £25 each October 150 @ £19 each    
A.
B.
C.
D.
12.  From the following figures calculate the closing inventory-in-trade that would be shown using  LIFO, BOUGHT SOLD January 120 @  £16 each June 125 @ £22 each April 80 @ £18 each November 210 @ £25 each October 150 @ £19 each  
A.
B.
C.
D.
13.  From the following figures calculate the closing inventory-in-trade that would be shown using  AVCO, BOUGHT SOLD January 120 @  £16 each June 125 @ £22 each April 80 @ £18 each November 210 @ £25 each October 150 @ £19 each  
A.
B.
C.
D.
14.  The method of remuneration when payment is on the basis of  time spent at work;  it can be an hourly rate or based on a  longer time period, is called  
A.
B.
C.
D.
15.  A rate (normally hourly) paid for time worked in excess of the normal contracted work time, and is usually at a rate higher than the basic rate, is called  
A.
B.
C.
D.
16.  A payment system when the employee is paid for the work carried out (eg per task or unit); which  does not take any account of the time taken, is called  
A.
B.
C.
D.
17.  A system used in conjunction with another payment method  (for example time rate, which provides additional payment for efficient working, eg production that is more than a set level), is called    
A.
B.
C.
D.
18.  B Ltd uses a time-rate method with bonus to pay its direct labour in its factory.  The time-rate used is £12 per hour and a worker is expected to produce 9 units an hour, anything over this and the worker is paid a bonus of £0.60 per unit.   Calculate the gross wage for the worker in the below.   Worker Hours Worked Units produced Basic wage Bonus Gross wage Joe Smith 30 286 £ £ £
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