Accounting MCQs / Q&A

Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?A. 1,600
B. 1,500
C. 1,000
D. 1,800Total Sales value =2000

Gross Profit =25 % of Sales
= 25/100×2000
= 500 Gross Profit
Cost of Goods = Total Sales – Gross Profit
=2000-500 = 1500

 

A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

A. 18,387
B. 18,560
C. 18,750
D. 19,000

One of the most important tools in cost planning is__________?

A. Direct cost
B. Cost Sheet
C. Budget
D. Marginal Costing.

A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is

A. 792
B. 820
C. 840
D. 864

If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.

A. 8,000 units
B. 11,000 units
C. 10,000 units
D. 9,000 units

Consider the following data pertaining to the production of a company for a particular month :

Opening stock of raw material 11,570
Closing stock of raw material 10,380
Purchase of raw material during the month 1,28,450
Total manufacturing cost charged to product 3,39,165
Factory overheads are applied at the rate of 45% of direct labour cost.
The amount of factory overheads applied to production is
A. 65,025
B. 94,287
C. 95,020
D. 1,52,624

A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

A. 37.50
B. 38.25
C. 24.00
D. 35.00

If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

A. 0.65
B. 0.35
C. 1.50
D. 5.29

Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

A. 5,80,000
B. 5,50,000
C. 5,00,000
D. 5,75,000
Explanation:
Using production related budgets, units to produce equals budgeted sales + desired ending finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case, units to produce is equal to 5,00,000 + 1,50,000 + 60,000 – 80,000 – 50,000 = 5,80,000