Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
Calculate the total equivalent units required for production based on the following data: budgeted sales of 500,000 units, desired ending finished goods inventory of 150,000 units, ending work-in-process inventory of 60,000 units, opening finished goods inventory of 80,000 units, and beginning work-in-process inventory of 50,000 units.
Answer:
580000
To determine the required production, we calculate the total units needed by adding budgeted sales (500,000) to the desired ending finished goods (150,000) and ending work-in-process (60,000), totaling 710,000. We then subtract the beginning finished goods (80,000) and beginning work-in-process (50,000). The calculation 710,000 - 130,000 equals 580,000 units, which represents the total production requirement for the period.
2
Given a total cost of $1,850,000 transferred out, what is the cost per good unit if the quantity is based on the provided option A?
Answer:
245.1724
To determine the cost per unit, one must divide the total cost of production by the number of equivalent units produced. In this specific problem, the calculation is derived from the provided answer key, which implies a divisor of approximately 7,545.7 units to reach the result of 245.1724.