Select the choice which best completes the statement, or answers the question, by clicking on the corresponding letter.
Sewell Telford Limited manufactures leather armchairs. Which of the following costs would not be classified as a production overhead?
Factory supervisor’s salary
Maintenance and repair of wood-turning machinery
Depreciation of factory building
Royalty payable to armchair designer for each armchair produced
Sandell Watkins plc produces custom-built yachts for rich clients. Each yacht is individually commissioned and no two are alike. Which method of accumulating costs is most appropriate for use by this company?
product costing
batch costing
job costing
period costing
Stretton Henscher Limited adopts the following convention in valuing the issues of raw material to its production line: the assumption is made that the raw materials delivered most recently will remain in the warehouse until all the older inventories of materials are used up in production. This valuation convention is commonly referred to as:
FIFO
LILO
LIFO
FILO
Taylor Bashir Limited uses a range of raw materials in its production of metal filing cabinets, including a bought in metal handle component. Because of a shortage of the grade of metal used in the component, prices have tended to rise rapidly. During September 20X5 the following deliveries into inventory and transfers to production of metal handles take place:
1 September........................Balance of inventory @ £2.70 per unit...................130 6 September........................Transfer to production...........................................60 7 September........................Delivery of inventory @ £2.90 per unit...................40 18 September......................Transfer to production...........................................30 26 September......................Delivery of inventory @ £2.96 per unit....................85
What is the value of closing inventory per unit, assuming that the company adopts the AVCO valuation convention (to the nearest penny)?
£2.87
£2.96
£2.77
£2.85
Taylor Bashir Limited uses a range of raw materials in its production of metal filing cabinets, including a bought in metal handle component. Because of a shortage of the grade of metal used in the component, prices have tended to rise rapidly. During September 20X5 the following deliveries into inventory and transfers to production of metal handles take place:
1 September........................Balance of inventory @ £2.70 per unit...................130 6 September........................Transfer to production...........................................60 7 September........................Delivery of inventory @ £2.90 per unit...................40 18 September......................Transfer to production...........................................30 26 September......................Delivery of inventory @ £2.96 per unit....................85
What is the value of the transfers to production of metal handles in September (to the nearest penny)?