Request to correct major errors in Costing sys essay question 2

k.sankar.ra
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Posts: 14
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Request to correct major errors in Costing sys essay question 2

Postby k.sankar.ra » Sat Apr 30, 2016 7:20 am

I just now completed attempting costing system essay question 2.
The solutions given are either not connected to the problem
(problem 1 relates to FIFO process costing, but the solution discusses life cycle costing,
problem 2 related FIFO process costing, but the solution discusses batches and sessions of Edupristine possibly)
or not explained at all and appearing to be correct (problem 3).

Can you get this error fixed please ?

Regards
Ra K Sankar

Costing Systems Essay Questions 2

Review of attempt 1

Finish review
Started on Friday, 29 April 2016, 10:39 PM
Completed on Friday, 29 April 2016, 10:48 PM
Time taken 8 mins 44 secs
Raw score 0/3 (0%)
Grade 0 out of a maximum of 10
Question1
Marks: 1
Sundaram Manufacturing produces a product that passes through two departments. The units from the rolling department are completed in the milling department. The units are completed in milling by adding the remaining direct materials when the units are 70% complete with respect to conversion costs. Conversion costs are added proportionately in milling. The production activity in the milling department for the current month is presented as follows. The company uses the FIFO (first-in, first-out) inventory method in its process cost system:

Questions
1. The equivalent units transferred from the rolling department to the assembly department for the current month are
Choose one answer.
a. 84,000 units Incorrect
b. 60,000 units Correct
c. 81,600 units Incorrect
d. 76,000 units Incorrect
The correct answer is B
Life-cycle costing takes into account all costs associated with a product, including those that come before production and after the sale. This method is often in cost planning and product pricing when there are significant non-production costs that need to be recovered.
Incorrect
Marks for this submission: 0/1.
Question2
Marks: 1
The equivalent units in the milling department for conversion costs for the current month are
Choose one answer.
a. 85,600 units Incorrect
b. 86,400 units Correct
c. 69,600 units Incorrect
d. 81,600 units Incorrect
The correct answer is B
Total good sessions = 20 per batch x 15 batches = 300; Normal spoilage = 300 / 20 x 1 = 15 sessions; Abnormal spoilage = 320 – 300 – 15 = 5 sessions; Total costs of services = Rs. 25.60 + Rs. 0.96 + Rs. 16.00 = Rs. 42.56 Lakhs; cost per session = Rs. 42.56 Lakhs / 320 = Rs. 13,300; abnormal spoilage = Rs. 13,300 x 5 = Rs. 66,500.
Incorrect
Marks for this submission: 0/1.
Question3
Marks: 1
The equivalent units in the milling department for direct materials for the current month are
Choose one answer.
a. 81,600 units Incorrect
b. 60,000 units Incorrect
c. 76,000 units Incorrect
d. 84,000 units Correct
The correct answer is D
Incorrect
Marks for this submission: 0/1.
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