Accounting Chapter 20 - Past Year MCQ

Which cost is a direct factory cost?

• carriage outwards
• depreciation of factory machinery
• factory supervisors’ wages manufacturing royalties
• manufacturing royalties

A manufacturing business provided the following information. closing work in progress 840 factory overheads 20 945 opening work in progress 910 prime cost 40 750 What was the factory cost of production?

• $19 735
• $19 875
• $61 625
• $61 765

Which option contains only indirect costs?

• carriage inwards, factory rent, wages of factory supervisors
• carriage inwards, raw materials, wages of machine operators
• depreciation of machinery, factory rent, wages of factory supervisors
• depreciation of machinery, raw materials, wages of machine operators

A business provided the following information. opening inventory of raw material 50 000 closing inventory of raw material 60 000 purchases of raw material 80 000 carriage inwards on raw material 2 000 What was the cost of raw material consumed?

• $70 000
• $72 000
• $90 000
• $92 000

Tim started a manufacturing business on 1 January. He provided the following information about his first year in business. closing inventory of finished goods 2 060 closing work in progress 1 840 factory overheads 15 530 prime cost 70 570 What was Tim’s cost of production?

• $82 200
• $84 260
• $86 100
• $87 940

A manufacturing business provided the following information for the year ended 30 November 2022. factory supervisor’s salary 25 000 factory heat and light 5 000 machinery depreciation 11 000 machinery operators’ wages 29 000 raw materials consumed 82 000 What was the total of the direct costs?

• $111 000
• $116 000
• $127 000
• $152 000

Where is work-in-progress shown in the statement of financial position of a manufacturing business?

• current assets
• current liabilities
• non-current assets
• non-current liabilities

A food processing factory fills cans with vegetables. The filled cans are then sold to shops. Which wages are direct labour costs for the factory? 1 wages paid to workers who load the cans on to lorries for delivery to shops 2 wages paid to workers who operate machines that fill the cans with vegetables 3 wages paid to people working on the maintenance of the machinery in the factory 4 wages paid to people working on the assembly line putting labels on the cans

• 1, 2 and 4
• 1 and 3
• 2 and 3
• 2 and 4 only

Thembi manufactures wooden toys. She provided the following information for the financial year ended 31 August 2022. prime cost 35 000 factory overheads 17 000 work in progress: opening inventory 1 400 closing inventory 2 300 What was the cost of production of finished goods?

• $49 700
• $51 100
• $52 000
• $52 900

The work in progress of ZT Manufacturers on 1 January was valued at $6200. At the end of the year it was valued at $5400. What was the effect on the cost of production for the year?

• decrease $800
• decrease $11 600
• increase $800
• increase $11 600