F2 Mock Exam
10 Questions
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Questions and Answers
- 1.A chemical process has a normal wastage of 10% of input. In a period, 2,500 kgs of material were input andthere was an abnormal loss of 75 kgs.What quantity of good production was achieved?
- A.
A. 2,175 kgs
- B.
B. 2,250 kgs
- C.
C. 2,325 kgs
- D.
D. 2,425 kgs
- 2.A company manufactures Chemical X, in a single process. At the start of the month there was no work-in-progress.During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costsduring the month amounted to $4,500. At the end of the month 250 litres of Chemical X were transferred to finishedgoods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50% completewith respect to conversion costs. There were no losses in the process.The equivalent units for closing work-in-progress at the end of the month would have been:
- A.
A. MATERIAL 25liters CONVERSION 25liters
- B.
B. MATERIAL 25liters CONVERSION 50liters
- C.
C. MATERIAL 50liters CONVERSION 25liters
- D.
D. MATERIAL 50liters CONVERSION 50liters
- 3.
- A.
A (i) only
- B.
B (ii) only
- C.
C (i) and (ii) only
- D.
D (ii) and (iii) only
- 4.In a process account, abnormal losses are valued
- A.
A At their scrap value
- B.
B The same as good production
- C.
C At the cost of raw materials
- 5.
- A.
A 357 litres
- B.
B 374 litres
- C.
C 391 litres
- D.
D 400 litres
- 6.A company produces a certain food item in a manufacturing process. On 1 November, there was no openinginventory of work in process. During November, 500 units of material were input to the process, with a cost of$9,000. Direct labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% ofdirect labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as tomaterials and 80% complete as to labour and overhead. There was no loss in process.The full production cost of completed units during November was
- A.
A $10,400
- B.
B $16,416
- C.
C $16,800
- D.
D $20,520
- 7.A company produces a certain food item in a manufacturing process. On 1 November, there was no openinginventory of work in process. During November, 500 units of material were input to the process, with a cost of$9,000. Direct labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% ofdirect labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as tomaterials and 80% complete as to labour and overhead. There was no loss in processThe value of the closing work in progress on 30 November is
- A.
A $2,440
- B.
B $3,720
- C.
C $4,104
- D.
D $20,520
- 8.
- A.
A 500
- B.
B 600
- C.
C 630
- D.
D 700
- 9.A company makes a product in two processes. The following data is available for the latest period, for process 1.Opening work in progress of 200 units was valued as follows.Material $2,400Labour $1,200Overhead $400No losses occur in the process.Units added and costs incurred during the period:Material $6,000 (500 units)Labour $3,350Overhead $1,490Closing work in progress of 100 units had reached the following degrees of completion:Material 100%Labour 50%Overhead 30%The company uses the weighted average method of inventory valuation.The value of the units transferred to process 2 was
- A.
A $7,200
- B.
B $13,200
- C.
C $14,840
- D.
D $15,400
- 10.A company uses process costing to establish the cost per unit of its output.The following information was available for the last month:Input units 10,000Output units 9,850Opening inventory 300 units, 100% complete for materials and70% complete for conversion costsClosing inventory 450 units, 100% complete for materials and30% complete for conversion costsThe company uses the weighted average method of valuing inventory.What were the equivalent units for conversion costs?
- A.
A 9,505 units
- B.
B 9,715 units
- C.
C 9,775 units
- D.
D 9,985 units
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