571. Which of the following items is not written on the credit side of the contract account :
A. Work underway – affirmed and uncertified
B. Materials returned
C. Cash received from the contractor*
D. Plant at the site
572. The type of process loss that should not affect the cost of inventories is :
A. Abnormal loss
B. Seasonal loss
C. Normal loss
D. Standard loss
573. During January 1997, Marconi Ltdhas a total manufacturing cost of 180,000 $. The business completed 14,000 units of products, of which 4,000 units were half completed in December 1996 and started production on an additional 6000 units that were half completed at the end of Jan 1997. For January 1997, the production cost per unit was :
A. 18 $
B. 12 $
C. 16 $
D. 11 $
574. Accounting entry for writing off the cost of abnormal wastage in a process is :
A. Dr. process account Cr. costing profit and loss account
B. Dr Abnormal wastage account Cr. costing profit and loss account
C. Dr. Costing profit and loss account cr. abnormal wastage account
D. None of them
575. 100 units are introduced in a process in which the normal loss is 15 units. If the actual output is also 100 units, then there is :
A. No abnormal loss or abnormal gain
B. An abnormal loss
C. An abnormal gain
D. None of them
576. 50 units are processed at a total cost of 80 $, Normal lost being 10%. Each unit carries a scrap value of 0.25 cents. If the output is 40 units the value of abnormal loss will be :
A. 1.25 $
B. 8.75 $
C. 9.00 $
D. 8.00 $
577. A processing plant moved out 8,800 finished units during January 1997 opening stock was 400 units 75% finished and shutting stock was 800 units half finished. Accepting FIFO technique, the same creation during the period was :
A. 8,900 units
B. 9,300 units
C. 9,100 units
D. 9,500 units
578. In the factory, the equivalent production (using FIFO method) was 7,500 units during a period which had 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were introduced during the period :
A. 6,750
B. 7,050
C. 6,850
D. 7,150
579. An understatement of ending work in progress inventory will :
A. Understate the cost of goods produced
B. Understate net profit
C. Overstate gross profit
D. Overstate current assets
580. In overstatement of beginning work in progress inventory will:
A. Understate the cost of good sold
B. Understate the profit
C. Overstate net profit
D. Overstate gross profit
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