PakQuizHub

1.Given that the beginning work-in-process inventory is 2,600 units, 9,000 units were started during the period, the ending work-in-process inventory is 2,300 units, and 8,000 units were completed as good products, what is the total amount of spoilage?

1,200 units990 units1,300 units1,000 units

2.Given that the normal spoilage quantity is 150 units and the total number of good units produced is 1500, what is the rate of normal spoilage?

3.What term is used to describe the spoilage that is expected and inherent in a specific manufacturing process?

4.What is the term for leftover material generated during the production process?

5.To determine ____________, you subtract normal spoilage from the total spoilage incurred.

abnormal spoilagegross weighted spoilageinventoriable spoilagepartial spoilage

6.Given that the total cost transferred out is $1,850,000 and the quantity of good units produced is known, what is the cost per good unit transferred out and completed?

7.What term describes finished products that fail to meet the original customer's specifications but can still be sold to different buyers?

8.To determine ____________, you subtract the total of beginning work-in-process inventory units and units started from the combined total of ending work-in-process inventory units and units transferred out.

9.To determine ____________, the number of normal spoilage units is divided by the total number of completed units instead of the total units actually produced.

the rate of normal spoilagethe rate of abnormal spoilagethe rate of normal scrapthe rate of abnormal scrap

10.Which of the following are categories of spoilage?

standard spoilageirregular spoilageweighted spoilageboth standard and irregular spoilage

11.What term is used for the partially or fully produced items that fail to meet customer requirements and are either sold at a discount or discarded?

spoilagereworkscrapequivalence

12.Which category of spoilage is deemed preventable and manageable?

abnormal spoilagenormal spoilagespoilage transferred inspoilage transferred out

13.What is calculated by dividing the total transferred-out cost plus normal spoilage by the number of good units produced?

Cost per good unit transferred outCost per good unit transferred inRevenue per good unit transferred outRevenue per good unit transferred in

14.Which category does the cost of abnormal spoilage not fall under?

conversion expensesirrecoverable costsproduct costs included in inventorycosts not assigned to inventory

15.Which type of costing describes the manner and timing in which scrap impacts a company's operating profit?

16.Which of the following are involved in the accounting treatment of scrap?

monitoring physical quantitiescosting that is excluded from inventoryvaluation of inventory costsboth monitoring physical quantities and valuation of inventory costs

17.Which of the following illustrates an example of rework?

Small offcuts generated during woodworkingAluminum cans with flaws that are reprocessed by the producerIdentifying faulty items prior to dispatchNone of the above

18.At which phase in the production process are the finished products evaluated to determine if they meet quality standards?

point for reprocessingquality inspection stagedefect identification phasediscarding stage

19.What term is used to describe spoilage that occurs beyond the expected level in a particular manufacturing process?

20.Which of the following best illustrates an instance of spoilage?

Wood offcuts produced during carpentryFaulty aluminum cans that are reclaimed and reused by the producerIdentification of flawed items prior to dispatchAll of the above

Cost Accounting Mcqs – MCQs