Question Tag: Process Costing

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MI – Nov 2020 – L1 – SA – Q7 – Costing Methods

Calculate the quantity of goods production given wastage and abnormal loss.

Question

A chemical process has a normal wastage of 10% of input in a period. A quantity of 2,500kg of material was introduced, and there was an abnormal loss of 75kg.

What quantity of goods production was achieved?

A. 2,175 kgs

B. 2,250 kgs

C. 2,325 kgs

D. 2,425 kgs

E. 2,625 kgs

Answer

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Tags: Abnormal Loss, Process Costing, Wastage
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

MI – Nov 2020 – L1 – SA – Q5 – Costing Methods

Identify an incorrect statement about marginal costing in process costing.

Question

When marginal costing is used in process costing, which of the following is NOT correct?

A. Process accounts will contain variable costs only

B. Equivalent units are valued at variable cost

C. Transfer from one process to another will be at total costs of the process

D. Losses, abnormal and normal will be valued at variable cost only

E. All fixed costs will be written off, each period, to costing profit or loss

Answer

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Tags: Marginal Costing, Process Costing, Variable Costs
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

MI – Nov 2015 – L1 – SA – Q9 – Costing Methods

Calculates the quantity of good production after accounting for normal and abnormal losses.

Question

XYZ is a chemical processing company with 25,000kg input materials. The company has a normal loss of 10% and an abnormal loss of 750kg. What quantity of good production will be achieved in kg?
A. 24,250
B. 23,250
C. 22,500
D. 21,750
E. 20,750

Answer

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Tags: Abnormal Loss, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: NOV 2015

MI – May 2018 – L1 – SB – Q1 – Costing Methods

Preparation of process, abnormal loss, and abnormal gain accounts for Queensly Nigeria Limited.

Question

The following data is compiled from the operations of QUEENSLY NIGERIA LIMITED in respect of their sole product:

	Process 1	Process 2
Material introduced (Kgs)	8,000	2,000
Labour costs (N)	12,000	8,000
Material cost per kg (N)	10	15
Expenses (N)	20,000	15,000
Normal loss (%)	10	15
Output (Kgs)	6,800	7,700

You are required to:

Draw up the process, abnormal loss, and abnormal gain accounts.

Answer

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Tags: Abnormal Gain, Abnormal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2018

MI – May 2018 – L1 – SA – Q8 – Costing Methods

Equivalent units and costing method classification.

Question

The term ‘equivalent units’ features under which of the following?
A. Contract Costing
B. Process Costing
C. Standard Costing
D. Job Costing
E. Batch Costing

Answer

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Tags: Equivalent Units, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2018

MI – May 2022 – L1 – SA – Q2 – Costing Methods

Impact of ignoring equivalent units for normal loss in process costing.

Question

In process costing, ignoring equivalent units for normal loss has which of the following effects?

A. Decreases equivalent units and increases the cost per unit
B. Increases equivalent units and increases the total cost
C. Increases total cost and decreases the cost per unit
D. Increases the cost of work in progress and decreases the cost of finished products
E. Increases the cost of completed units and decreases work in progress

Answer

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Tags: Equivalent Units, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2022

MI – May 2021 – L1 – SA – Q7 – Costing Methods

Identify the correct definition of abnormal gain in costing.

Question

Abnormal gain is calculated as:

A. Unexpected profit from price increase due to sudden jump in demand
B. Profit from sale of fixed assets
C. Normal loss minus actual loss
D. Donations and subventions received unexpectedly
E. Profit realised outside the normal course of business

Answer

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Tags: Abnormal Gain, Costing, Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – May 2021 – L1 – SA – Q6 – Costing Methods

Identify the concept not associated with process costing.

Question

Which of the following is NOT associated with process costing?

A. Normal loss
B. Abnormal loss
C. Abnormal gain
D. Equivalent units
E. Cost of goods sold

Answer

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Tags: Abnormal Loss, Costing, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – May 2023 – L1 – SB – Q1 – Costing Methods

Preparation of Process 1 and Process 2 accounts, including the cost of goods produced and applicable abnormal loss or gain.

Question

A company manufactures a product which goes through two processes. The following are the extracts from the company’s records:

Process 1:

Materials: 10,000 units at the cost of ₦100,000
Labour: ₦20,000
Overheads: ₦20,000
Normal loss: 10%
Actual production: 8,500 units
Scrap sales: ₦5 per unit

Process 2:

Transfer from process 1: 8,500 units valued at ₦127,500
Labour: ₦15,000
Overheads: ₦10,000
Normal loss: 10%
Actual production: 8,400 units
Scrap sales: ₦3 per unit

Required:
a. Prepare Process 1 account. (10 Marks)
b. Prepare Process 2 account. (10 Marks)

(Show the calculations of cost of goods produced and applicable abnormal loss or gain.)

Answer

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Tags: Abnormal Loss, Normal Loss, Process Costing, Production Costs
Level: Level 1

Topic: Costing Methods
Series: MAY 2023

MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

Question

Question:
A situation in which there is mass production of identical units of products and costs are not necessarily assigned to individual units of output is known as:
A. Job costing
B. Step costing
C. Joint costing
D. Process costing
E. Batch costing

Answer

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Tags: Cost Allocation, Mass Production, Process Costing
Level: Level 1

Topic: Costing Techniques
Series: MAY 2017

MI – Nov 2020 – L1 – SA – Q7 – Costing Methods

Calculate the quantity of goods production given wastage and abnormal loss.

Question

A chemical process has a normal wastage of 10% of input in a period. A quantity of 2,500kg of material was introduced, and there was an abnormal loss of 75kg.

What quantity of goods production was achieved?

A. 2,175 kgs

B. 2,250 kgs

C. 2,325 kgs

D. 2,425 kgs

E. 2,625 kgs

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Loss, Process Costing, Wastage
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

MI – Nov 2020 – L1 – SA – Q5 – Costing Methods

Identify an incorrect statement about marginal costing in process costing.

Question

When marginal costing is used in process costing, which of the following is NOT correct?

A. Process accounts will contain variable costs only

B. Equivalent units are valued at variable cost

C. Transfer from one process to another will be at total costs of the process

D. Losses, abnormal and normal will be valued at variable cost only

E. All fixed costs will be written off, each period, to costing profit or loss

Answer

Find Related Questions by Tags, levels, etc.

Tags: Marginal Costing, Process Costing, Variable Costs
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

MI – Nov 2015 – L1 – SA – Q9 – Costing Methods

Calculates the quantity of good production after accounting for normal and abnormal losses.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Loss, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: NOV 2015

MI – May 2018 – L1 – SB – Q1 – Costing Methods

Preparation of process, abnormal loss, and abnormal gain accounts for Queensly Nigeria Limited.

Question

The following data is compiled from the operations of QUEENSLY NIGERIA LIMITED in respect of their sole product:

	Process 1	Process 2
Material introduced (Kgs)	8,000	2,000
Labour costs (N)	12,000	8,000
Material cost per kg (N)	10	15
Expenses (N)	20,000	15,000
Normal loss (%)	10	15
Output (Kgs)	6,800	7,700

You are required to:

Draw up the process, abnormal loss, and abnormal gain accounts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Gain, Abnormal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2018

MI – May 2018 – L1 – SA – Q8 – Costing Methods

Equivalent units and costing method classification.

Question

The term ‘equivalent units’ features under which of the following?
A. Contract Costing
B. Process Costing
C. Standard Costing
D. Job Costing
E. Batch Costing

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equivalent Units, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2018

MI – May 2022 – L1 – SA – Q2 – Costing Methods

Impact of ignoring equivalent units for normal loss in process costing.

Question

In process costing, ignoring equivalent units for normal loss has which of the following effects?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equivalent Units, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2022

MI – May 2021 – L1 – SA – Q7 – Costing Methods

Identify the correct definition of abnormal gain in costing.

Question

Abnormal gain is calculated as:

Answer

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Tags: Abnormal Gain, Costing, Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – May 2021 – L1 – SA – Q6 – Costing Methods

Identify the concept not associated with process costing.

Question

Which of the following is NOT associated with process costing?

A. Normal loss
B. Abnormal loss
C. Abnormal gain
D. Equivalent units
E. Cost of goods sold

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Loss, Costing, Normal Loss, Process Costing
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – May 2023 – L1 – SB – Q1 – Costing Methods

Preparation of Process 1 and Process 2 accounts, including the cost of goods produced and applicable abnormal loss or gain.

Question

A company manufactures a product which goes through two processes. The following are the extracts from the company’s records:

Process 1:

Materials: 10,000 units at the cost of ₦100,000
Labour: ₦20,000
Overheads: ₦20,000
Normal loss: 10%
Actual production: 8,500 units
Scrap sales: ₦5 per unit

Process 2:

Transfer from process 1: 8,500 units valued at ₦127,500
Labour: ₦15,000
Overheads: ₦10,000
Normal loss: 10%
Actual production: 8,400 units
Scrap sales: ₦3 per unit

Required:
a. Prepare Process 1 account. (10 Marks)
b. Prepare Process 2 account. (10 Marks)

(Show the calculations of cost of goods produced and applicable abnormal loss or gain.)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Loss, Normal Loss, Process Costing, Production Costs
Level: Level 1

Topic: Costing Methods
Series: MAY 2023

MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Allocation, Mass Production, Process Costing
Level: Level 1

Topic: Costing Techniques
Series: MAY 2017

Question Tag: Process Costing

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MI – Nov 2020 – L1 – SA – Q7 – Costing Methods

Calculate the quantity of goods production given wastage and abnormal loss.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q7 – Costing Methods"

MI – Nov 2020 – L1 – SA – Q5 – Costing Methods

Identify an incorrect statement about marginal costing in process costing.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q5 – Costing Methods"

MI – Nov 2015 – L1 – SA – Q9 – Costing Methods

Calculates the quantity of good production after accounting for normal and abnormal losses.

You're reporting an error for "MI – Nov 2015 – L1 – SA – Q9 – Costing Methods"

MI – May 2018 – L1 – SB – Q1 – Costing Methods

Preparation of process, abnormal loss, and abnormal gain accounts for Queensly Nigeria Limited.

You're reporting an error for "MI – May 2018 – L1 – SB – Q1 – Costing Methods"

MI – May 2018 – L1 – SA – Q8 – Costing Methods

Equivalent units and costing method classification.

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MI – May 2022 – L1 – SA – Q2 – Costing Methods

Impact of ignoring equivalent units for normal loss in process costing.

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MI – May 2021 – L1 – SA – Q7 – Costing Methods

Identify the correct definition of abnormal gain in costing.

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MI – May 2021 – L1 – SA – Q6 – Costing Methods

Identify the concept not associated with process costing.

You're reporting an error for "MI – May 2021 – L1 – SA – Q6 – Costing Methods"

MI – May 2023 – L1 – SB – Q1 – Costing Methods

Preparation of Process 1 and Process 2 accounts, including the cost of goods produced and applicable abnormal loss or gain.

You're reporting an error for "MI – May 2023 – L1 – SB – Q1 – Costing Methods"

MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

You're reporting an error for "MI – May 2017 – L1 – SA – Q7 – Costing Techniques"

MI – Nov 2020 – L1 – SA – Q7 – Costing Methods

Calculate the quantity of goods production given wastage and abnormal loss.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q7 – Costing Methods"

MI – Nov 2020 – L1 – SA – Q5 – Costing Methods

Identify an incorrect statement about marginal costing in process costing.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q5 – Costing Methods"

MI – Nov 2015 – L1 – SA – Q9 – Costing Methods

Calculates the quantity of good production after accounting for normal and abnormal losses.

You're reporting an error for "MI – Nov 2015 – L1 – SA – Q9 – Costing Methods"

MI – May 2018 – L1 – SB – Q1 – Costing Methods

Preparation of process, abnormal loss, and abnormal gain accounts for Queensly Nigeria Limited.

You're reporting an error for "MI – May 2018 – L1 – SB – Q1 – Costing Methods"

MI – May 2018 – L1 – SA – Q8 – Costing Methods

Equivalent units and costing method classification.

You're reporting an error for "MI – May 2018 – L1 – SA – Q8 – Costing Methods"

MI – May 2022 – L1 – SA – Q2 – Costing Methods

Impact of ignoring equivalent units for normal loss in process costing.

You're reporting an error for "MI – May 2022 – L1 – SA – Q2 – Costing Methods"

MI – May 2021 – L1 – SA – Q7 – Costing Methods

Identify the correct definition of abnormal gain in costing.

You're reporting an error for "MI – May 2021 – L1 – SA – Q7 – Costing Methods"

MI – May 2021 – L1 – SA – Q6 – Costing Methods

Identify the concept not associated with process costing.

You're reporting an error for "MI – May 2021 – L1 – SA – Q6 – Costing Methods"

MI – May 2023 – L1 – SB – Q1 – Costing Methods

Preparation of Process 1 and Process 2 accounts, including the cost of goods produced and applicable abnormal loss or gain.

You're reporting an error for "MI – May 2023 – L1 – SB – Q1 – Costing Methods"

MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

You're reporting an error for "MI – May 2017 – L1 – SA – Q7 – Costing Techniques"

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