18. Beginning work in process inventory was 4,000 units and were 55% complete as to direct labor and overhead. 23,000 units were added to production. 4,500 units remained in process at the end of the period, each was 75% complete. The equivalent units for direct labor and overhead were: *

22,500

23,765

23,675

47,350

None of the above

20. Beginning work in process inventory was 4,800 units and were 55% complete as to direct labor and manufacturing overhead. During the current period, 12,600 units were completed and transferred to finished goods. Three hundred fifty units remain in work in process and are 70% complete. The number of units started during the current period were: *

17,050

8,150

12,600

10,555

None of the above

21. The total cost to complete the beginning work in process of 6,000 units was P24,000. Twenty thousand units were started and completed. There were not ending work in process inventory. Costs added during the period for current units were: direct materials- P48,000, and direct labor and manufacturing overhead P16,000 each. What is the net change in the per unit cost of the units started and completed during the period as compared to the beginning work in process completed? *

P0.00 change

P0.80 decrease

P0.80 increase

P1.20 decrease

None of the above

22. Aligorada Company uses a process-cost system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory? *

A, 4,800; B, 0.

A, 4,800; B, 4,800.

A, 6,000; B, 0.

A, 6,000; B, 4,800.

A, 6,000; B, 6,000.

23. When two different products are produced by refining one ore, the refining process would be considered as: *

extractive process

reduction process

normal process

joint process

none of the above

24. Joint production costs are allocated *

based on selling price

based on the costs after separation

to by-products only

based on an authorized basis applied consistently

none of the above

25. When considering whether or not to investigate a variance, managers should consider all of the following except the variance's: *

controllability

size

pattern of recurrence

nature whether it is favorable or unfavorable

trends over time

26. The "standard hours allowed" is equivalent to *

actual input in units multiplied by standard output allowed

standard output in units multiplied by standard input allowed

actual output in units multiplied by standard output allowed

actual output in units multiplied by standard input allowed

None of the above

27. When a company produces two different products through a common production process, the factor that determines whether the two products are joint products or one main product and one by-product is the: *

amount of work done in the production of individual products

management policy about individual products

potential marketability for individual products

relative sales value of individual products

None of the above

28. The basic objective of allocating the joint cost of a processing center to various products is to: *

find reliable processing cost variances per product

establish inventory cost assigned to unsold products

record accurate cost of sales per product segment

submit a correct standard product cost for variance analysis

none of the above

29. Which of the following is a predetermined estimated cost that can be used in the calculation of a variance? *

Product cost.

Actual cost.

Differential cost.

Standard cost.

Marginal cost.

30. Which of the following correctly lists all the information needed to calculate a labor rate variance? *

Standard labor rate and actual hours worked.

Actual labor rate, standard labor rate, and actual hours worked.

Actual hours worked and actual units produced.

Standard labor rate, actual labor rate, and actual units produced.

Actual labor rate and actual hours worked.

Option 6

31. Hypothetical market value is equal to:*

final market value

final market value plus processing cost after split-off

final market value less processing cost after split-off

processing cost after split-off plus marketing and admin expenses

None of the above

32. The ultimate market value of Product 123 is 30 per unit. The processing cost after split-off point is 4.50 per unit and selling and administrative expenses total 1.50 per unit. If 4,000 units are produced during a period, the market value of Product 123 would be: *

96,000

102,500

120,000

102,000

None of the above

33. A separable cost is the: *

cost incurred before split-off point

cost incurred after split-off point

cost incurred on main product

cost incurred on by-product

All of the above

34. The point at which two or more products emerge in their separately identifiable form is known as: *

Change point

Split-off point

Break-even point

Joint point

All of the above

35. A cost incurred to produce two or more products in a common production process is termed as: *

Joint cost

Mixed cost

Basic cost

All of the above

None of above

36. A method that uses measurement units such as tons, gallons, kilograms, pounds and feet to apportion joint cost is known as: *

Weighted-average method

Market value method

Quantitative unit method

Average unit cost method

None of the above

37. The term budgeted cost refers to the*

actual expenses of budgeted production

estimated expenses of budgeted production

actual expenses of actual production

estimated expenses of actual production

None of the above

38. The quantitative unit method of joint cost allocation is also known as: *

By-product method

Physical unit method

Direct product method

Joint product method

All of the above

39. Which of the following is not likely to be reason of unfavorable direct labor rate variance? *

Assignment of easy tasks to highly skilled workers

Frequent breakdown of factory machinery

An increase in labor rates and overtime pay

Poor estimates while setting direct labor standards

None of the above

40. A method that assigns predetermined weight factors to each unit of various joint products for the purpose of allocating joint cost is known as: *

weighted average method of joint cost allocation

equal method of joint cost allocation

average method of joint cost allocation

justifiable method of joint cost allocation

None of the above