Costing

22. If the beginning balance in raw materials inventory is Rs. 5,000, the ending balance is Rs. 3,500 and material of Rs. 60,000 was purchased, what is the amount of materials transferred to work-in-processinventory during the period?

Rs. 58,500
Rs. 60,000
Rs. 61,500
Rs. 68,500

Detailed SolutionIf the beginning balance in raw materials inventory is Rs. 5,000, the ending balance is Rs. 3,500 and material of Rs. 60,000 was purchased, what is the amount of materials transferred to work-in-processinventory during the period?

27. From the following two statements of Assertion (A) and Reason (R). Indicate the correct option. Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

Both (A) and (R) are correct
(A) is correct, but (R) is not correct
(A) is not correct, but (R) is correct
Both (A) and (R) are incorrect

Detailed SolutionFrom the following two statements of Assertion (A) and Reason (R). Indicate the correct option. Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

28. Which of the following statements relating to incentive payments is correct?

In Halsey incentive plan, bonus paid to a worker is equal to 50% of the time saved, divided by the rate per hour
In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time
In Taylor's differential piece rate system, a worker whose output exceeds standard output is paid 100% of piece rate, and a worker whose output falls short of the standard is paid only 50% of piece rate
The Rowan incentive plan is the base of all other incentive payment plans

Detailed SolutionWhich of the following statements relating to incentive payments is correct?

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