Total 27 question
22 MCQS (Mostly from Past Papers)
Question of 3 Marks:-
- Explain equivalent production.
- There are two wage rate principles i.e. time wage and piece rate. Explain these systems.
- ABC company’s data is as under:
400 units already in inventory @ Rs. 5
Additional 500 units purchased @ Rs. 6
ABC Company sold 800 units @ Rs. 8
Required:
If ABC Company is following LIFO method than compute GROSS MARGIN to be shown on income statement.
Question of 5 Marks:
Question 1:- IF
Wage rate per hour Rs. 3.50
Time allowed for the job 21 hours
Time taken 19 hours.
Required:
1. Calculate the Gross earnings of the worker according to Halsey Premium Plan.
2. Find out effective “rate of earnings”
Question 2:- IF
Units transferred to next department 40,000
Units still in process (all material, 2/3 labour & FO H) 8,000
Following costs were added during the process.
Materials Rs.40,500
Labour 101,700
Factory overhead 50,500
Required:
You are required to calculate equivalent units of material, labour and factory
Overhead and unit cost of material, labour and factory overhead.