Costing - Study Mode
[#366] Normal spoilage is subtracted from total spoilage to calculate
Correct Answer
(A) abnormal spoilage
Explanation
Solution: Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage. Abnormal spoilage is the amount of waste or destruction of inventory beyond what is expected in normal business processes.
[#367] A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?
Correct Answer
(A) Rs 142,485
[#368] In process costing, if an abnormal loss arises, the process account is generally.
Correct Answer
(D) Credited with the full production cost of the abnormal loss units
Explanation
Solution: In process costing, if an abnormal loss arises, the process account is generally credited with the full production cost of the abnormal loss units. Abnormal loss (a cost) is credited to the process account and abnormal gain (a benefit) is debited to the process account.
[#369] "Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost. 3. The job costing method can be applied in costing batches"
Correct Answer
(C) (1) and (3) only
Explanation
Solution: The following statements that are correct are: A materials requisition note is used to record the issue of direct material to a specific job and The job costing method can be applied in costing batches.
[#370] A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?
Correct Answer
(A) Rs 8.25