40+ Process costing MCQ | Cost Accounting MCQs (Free Resource)

21. The cost of production of 40 units in Process I consists of materials RS 1,500; Labour Rs 1300 and Overhead Rs 164. The normal waste is 5% of input.
(a) 40 units are transferred to next process @ RS 70 each
(b) 40 units are transferred to next process @ Rs 74.10 each
(c) 38 units are transferred to next process @ Rs 78 each
(d) 40 units are transferred to next process @ Rs 78 each

22. Particulars for Process A.
Materials (200 Units) Rs 4,000
Labour Rs 3,000
Indirect Expenses Rs 2,000
Normal wastage is 5% of the input. One unit of wastage is sold at Rs 16.50 each.
(a) 190 units are transferred to next process at Rs 9,000
(b) 200 units are transferred to next process at Rs 9,000
(c) 190 units are transferred to next process at Rs 7,000
(d) 190 units are transferred to next process at Rs 8,835

23. In process Y, 75 units of a commodity were transferred from process X at a cost of Rs 1,310. The labour and overhead expenses incurred by the process were Rs 190. 20% of the units entered are normally lost and sold @ Rs 4 per unit. The output of the process was 70 units.
(a) Process Account Credit Side showed Abnormal Gains of Rs 240
(b) Process Account Debit Side showed Abnormal Loss of Rs 240
(c) Process Account Credit Side showed Abnormal Loss of Rs 240
(d) Process Account Debit Side showed Abnormal Gains of Rs 240

24. Input in a process is 4000 units and normal loss is 20%. When finished output in the process is only 3,240 units, there is an
(a) Abnormal loss of 40 units
(b) Abnormal gain of 40 units
(c) Neither abnormal loss nor gain
(d) Abnormal loss of 60 units

25. Details of the process for the last period are as follows :
Put into process – 5,000 kg
Materials – Rs 2,500
Labour – Rs 700
Production Overheads – 200% of labour
Normal losses are 10% of input in the process. The output for the period was 4,200 kg from the process. There was no opening and closing work-in-process. What were the units of abnormal loss?
(a) 500 units
(b) 300 units
(c) 200 units
(d) 100 units

26. You are required to identify how many good units were outputs from the process.
Units put in process – 4,000
Lost units – 500
Units in process – 200
(a) 3,300 units
(b) 4,000 units
(c) 4,200 units
(d) 4,500 units

27. A chemical process has normal wastage of 10% of input. In a period, 2,500 kg of material were input and there was abnormal loss of 75 kg. What quantity of good production was achieved?
(a) 2,175 kg
(b) 2,250 kg
(c) 2,425 kg
(d) 2,500 kg

28. Costs incurred prior to the point of separation of the joint or by-products are termed as
(a) Process cost
(b) Joint cost
(c) Main cost
(d) Separable cost

29. When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as
(a) joint products and byproducts
(b) joint products and scrap
(c) main products and byproducts
(d) main products and joint products

30. A process gives rise, incidentally, to an item of low value, which is called
(a) a joint product
(b) a by-product
(c) scrap
(d) waste

Answer: 21)38 units are transferred to next process @ Rs 78 each 22)190 units are transferred to next process at Rs 8,835 23)Process Account Debit Side showed Abnormal Gains of Rs 240 24)Abnormal gain of 40 units 25)300 units 26)3,300 units 27)2,175 kg 28)Joint cost 29)main products and byproducts 30)a by-product