F2 Mock Exam

10 Questions | Total Attempts: 538

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Intelligence Test Quizzes & Trivia

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. 
    In a particular process, the input for the period was 2,000 units. There were no inventories at the beginningor end of the process. Normal loss is 5 per cent of input. In which of the following circumstances is there anabnormal gain?(i) Actual output = 1,800 units(ii) Actual output = 1,950 units(iii) Actual output = 2,000 units
    • 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 company needs to produce 340 litres of Chemical X. There is a normal loss of 10% of the material inputinto the process. During a given month the company did produce 340 litres of good production, althoughthere was an abnormal loss of 5% of the material input into the process.How many litres of material were input into the process during the month?
    • 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 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.How many equivalent units are used when calculating the cost per unit in relation to overhead?
    • 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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