MULTICHOICE QUESTIONS

3. Material input in Process 1 is 7 000 kgs, output is 4 000 kgs, ending work in progress is 1500 kgs and normal loss is expected to be 15%. What is the type and quantity of the loss?

a Abnormal loss 450 kgs.

b Abnormal loss 1050 kgs

c Normal loss 1500kgs

d Actual loss 3000 kgs

4. In addition to facts on question 3, the WIP was 100% complete as to materials and 60% as to labour and overhead costs. Inspection is done at the end of the process. What are the equivalent units per cost element? Materials Conversion costs

a 4450 units 4450 units

b 5950 units 5 950 units

c 5950 units 5200 units

d 5500 units 4750 units