Costs and Revenues practice exam

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Try this Costs and Revenues practice exam. Cost and Revenues is an important part of Intermediate Diploma in Accounting.

Question 1

Prime cost includes:

  1. direct labour
  2. factory overhead expenses
  3. raw materials consumed
  4. direct expenses
  1. i , ii and iii
  2. ii, iii and iv
  3. i, iii and iv
  4. i, ii and iv

Question 2

In the manufacturing account is calculated

      1. the production costs paid in the year
      2. the total cost of goods produced
      3. the production cost of goods completed in the period
      4. the gross profit on goods sold

Question 3

You work at a manufacturing company as an accounting trainee and you are revising for your Costs and Revenues practice exam.  The  company sells and manufactures one product which requires 8 kg of raw material in its manufacture. The budgeted data relating to the next period are as follows:
Sales 19,000
Opening inventory of finished goods 4,000
Closing inventory of finished goods 3,000

Opening inventory of raw materials 50,000 Kg
Closing inventory of raw materials 53,000 Kg

What is the budgeted raw material purchases for next period (in kg)?
A 141,000
B 147,000
C 157,000
D 163,000