The following information for the year ended December 31, 2020 is obtained from the books and records of a factory.

Particulars	Completed Job	Work in progress
Raw materials supplied from stores	RO 70,000	RO 20,000
Wages	RO 10,000	RO 5,000
Chargeable expenses	RO 15,000	RO 2,500
Material transferred to work in progress	RO 3,500
Material returned to stores	RO 2,500

Factory overhead is 20% of raw material supplied from stores and office overhead is 40% of factory cost.

The price of the executed contracts during 2020 was RO 250,000.

Prepare consolidated completed jobs account showing the profit or loss incurred and consolidated work in progress account.

After preparing the above statements, MCQs 23, 24, 25 and 26 should be answered.

Method of apportioning joint costs on the basis of output of each joint product at the point of split off is:

a.

Point value method

b.

Net realizable value method

c.

Physical unit method

d.

Average unit cost method

A job order costing system that would best fit the needs of a company that makes:

a.

Pencils and erasers

b.

Shoes and apparel

c.

Custom machinery

d.

Paint

Mazan Production LLC has a similar production process and it is using process costing system. During the production process, the works manager observed that actual output is less than expected output. Such output is known as:

a.

None of the choices is correct

b.

Abnormal gain

c.

Abnormal Loss

d.

Abnormal efficiency

Under which standard, the employer of a company enter into an agreement with the trade unions for wage payment, that covers a number of future months.

a.

Labor efficiency standard

b.

Labor output standard

c.

Labor rate standard

d.

Labor time standard

Which of the following is not a feature of joint product?

a.

Equally important

b.

Common manufacturing process

c.

Comparatively low value

d.

Same raw material is used

1)Determine the amount of profit shown in the consolidated completed job account.

a.

RO 125,200

b.

RO 144,200

c.

RO 105,800

d.

RO 250,000

____________ can be defined as a system which intends to control the cost of each unit through prior determination of what should be the cost and then its comparison with actual cost.

a.

Variance analysis

b.

Absorption costing

c.

Standard costing

d.

Marginal costing

Find the amount of factory overhead shown in the work-in-progress account.

a.

RO 3,300

b.

RO 4,700

c.

RO 4,000

d.

RO 2,000

Identify the amount of office overheads shown in work-in-progress account.

a.

RO 12,600

b.

RO 14,280

c.

RO 17,600

d.

RO 21,000

Identity the standard which is more realistic for cost control and is established for short period of time.

a.

Current standard

b.

Normal standard

c.

Expected standard