Costing - Study Mode

[#211] Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be
Correct Answer

(B) $6,450

Explanation

Solution: Total Overhead = Direct service labour + Idle time wages + Overtime premium = $5000 + $1000 + $450 = $6,450

[#212] In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are
Correct Answer

(A) inventoriable costs

Explanation

Solution: In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are inventoriable costs. Inventoriable costs are included in the cost of a product. For a manufacturer, these costs include direct materials, direct labor, freight in, and manufacturing overhead.

[#213] Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of
Correct Answer

(B) cost accounting

Explanation

Solution: Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of cost accounting. Cost accounting is an accounting method that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.

[#214] Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be
Correct Answer

(A) $40,000

Explanation

Solution: Direct material cost = Prime cost - Direct manufacturing labour = $50000 - $10000 = $40,000

[#215] An inventory, which consists of partially worked goods or work in progress is called
Correct Answer

(B) work in process inventory

Explanation

Solution: An inventory, which consists of partially worked goods or work in progress is called work in process inventory. Work-in-process is an asset, and so is aggregated into the inventory line item on the balance sheet (usually being the smallest of the three main inventory accounts, of which the others are raw materials and finished goods).