代写BUSI1113 FUNDAMENTALS OF FINANCIAL AND MANAGEMENT ACCOUNTING 2018-2019代写Java编程
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A LEVEL 1 MODULE, FULL YEAR 2018-2019
FUNDAMENTALS OF FINANCIAL AND MANAGEMENT ACCOUNTING
SECTION A
Attempt all questions
Each correct answer is worth 1.5 marks – Total 30 marks
There is no penalty for an incorrect answer.
For each question, there is only one correct answer.
Mark the appropriate boxes on the multiple choice answer sheet provided.
1. Which of the following describes a cost object?
A. Any item that had been included in the budget for the period
B. An item whose cost is controllable by the manager of a cost centre
C. Any element of a product’s cost, except labour
D. Any activity whose cost is being measured
2. Which of the following is the best definition of a cost centre?
A. A cost centre is a unit of the organisation in respect of which a manager is responsible for profits under his or her control
B. A cost centre is a unit of the organisation which is controlled by the central head office
C. A cost centre is a unit of the organisation in respect of which a manager is responsible for costs under his or her control
D. A cost centre is a unit of the organisation which is controlled by the management accounting department
3. A company makes four products (A,B,C and D). The skilled workforce is able to make any of the products but labour hours is a limited resource, and the company is considering outsourcing one of the products. Based on the following information, which product should the company buy from an outside supplier?
A B C D
Variable production cost (per unit) £105 £70 £60 £25
Labour hours (per unit) 2.5 1.25 1.5 0.5
Purchase price from outside supplier £150 £85 £90 £35
A. Product A
B. Product B
C. Product C
D. Product D
4. Here is information the costs and performance of a company making a single product:
Variable cost per unit is £10.
Selling price per unit is £12. Actual fixed manufacturing costs are £315 in each period, which is the same as the budget.
Sales are also in accordance with the budget.
The company uses a predetermined overhead rate and adjusts for under/over recovery of overhead at the end of each period.
Period 1 units Period 2 units Period 3 units
Produced 250 200 180
Sold 210 210 210
Held in stock at end of period 40 30 Nil
Using absorption costing, the factory profit of Period 2 is:
A. £90
B. £105
C. £120
D. £150
5. Which of the following statements is correct?
A. If there is a plant-wide overhead rate, costs are shared between production cost centres and service cost centres.
B. Only production cost centres incur overhead costs, but service cost centres do not.
C. The overhead costs of service cost centres are reallocated to production cost centres.
D. The overhead costs of service cost centres are written off as period costs.
6. A company is considering a project that would involve the renovation and use of an old piece of machinery, for use in the production of a new product. The cost of material and labour per unit would be £2.50 and £1.25 per unit. The cost of renovation would be between £500 and £600.
In relation to the decision whether to proceed with this project or not, the original cost of the machine is:
A. a fixed cost
B. an opportunity cost
C. an incremental cost
D. a sunk cost
7. The table shows the original budget and actual performance for a business:
Planned contribution amounts to:
A. £85,000
B. £90,000
C. £97,50
D. £123,000
8. A company plans to make a single product, with selling price £12.00 and variable costs per unit of £4.50. At the planned level of sales, which represents a margin of safety of 12.5%, profit is expected to be £4,200. Planned sales are:
A. 4,480 units
B. 5,040 units
C. 7,467 units
D. 8,400 units
The following information applies to questions 9 and 10.
The standard cost card for a company making a single product is shown below. The company uses absorption standard costing, with the factory overhead rate based on a budgeted output of 30,000 units.
£ £
Sales price 22.00
Raw material (0.6 kg at £14 per kg) 8.40
Direct labour (0.4 hours at £20 per hour) 8.00
Factory overhead 3.00
19.40
Manufacturing profit £ 2.60
The actual output and sales achieved was 31,500 units producing the following results:
£ £
Sales 677,250
Raw material 261,261
Direct labour 270,270
531,531
Production overhead 96,000
627,531
Manufacturing profit £ 49,719
The average cost of labour was £19.50 per hour and the cost of material was £14.30 per kg.
9. The sales margin volume variance is:
A. £ 3,300 (Favourable)
B. £ 3,900 (Favourable)
C. £ 4,500 (Favourable)
D. £15,750 (Favourable)
10. The fixed overhead volume variance is:
A. £ 4,500 (Favourable)
B. £ 4,500 (Unfavourable)
C. £ 6,000 (Favourable)
D. £ 6,000 (Unfavourable)
11. Equity is defined in the Conceptual Framework as:
A. The residual value of an entity to its owners.
B. The residual interest in the assets of the entity, after deducting all of its liabilities.
C. The total of the ordinary share capital and share premium of an entity.
D. A measure of the total assets of an entity.
12. The gross profit margin for Wessex Ltd was 43%. If cost of sales for the year was £136,800, what was revenue?
A. £103,200
B. £136,800
C. £195,624
D. £240,000
13. The following information is taken from the trial balance of Baird Ltd for the year ended 30 September 2015:
£000 £000
Property, at cost 200
Property, accumulated depreciation 120
IT equipment, at cost 125
IT equipment, accumulated depreciation 45
Property is depreciated at 2% straight-line and IT equipment is depreciated at 25% on a reducing balance basis.
What is the depreciation expense to be recognised in the financial statements for the year ended 30 September 2015
A. £21,600
B. £24,000
C. £32,850
D. £35,2506
14. Brenda’s Bunting Ltd sells decorative lengths of fabric bunting. Each piece costs the company £15 to make and sells for £20. When counting the inventory for the year-end financial statements, Brenda (the owner) discovers that a recent batch of bunting has faulty stitching and will need to be repaired before it can be sold. The repair will cost £6 per item, and there are 100 affected items.
At what value will these 100 items be included in the Financial Statements?
A. £1,400
B. £1,500
C. £1,600
D. £2,000
15. Under IAS2 Inventory, inventory is measured at:
A. Cost
B. Net realisable value
C. The higher of cost and net realisable value
D. The lower of cost and net realisable value
16. Crocus Ltd issued 300 £1 ordinary shares during the year, in return for £1,000 in cash. The debit entry of £1,000 was made to cash at bank, while the matching credit entry was made to retained earnings.
What entry will be needed to correct the error?
A. Dr cash £1,000
Cr share capital £300
Cr share premium £700
B. Dr share capital £1,000
Cr retained earnings £1,000
C. Dr retained earnings £1,000
Cr share capital £300
Cr share premium £700
D. Dr share capital £300
Dr share premium £700
Cr retained earnings £1,000
17. In a cash flow statement, a new bank loan will represent:
A. A cash outflow within financing activities.
B. A cash inflow within financing activities.
C. A cash outflow within investing activities.
D. A cash inflow within investing activities.
18. Birch Ltd discovers that one of its customers has gone into administration, owing Birch Ltd £6,000. To write off this amount as a bad debt, the required journal is:
A. Dr bad debt expense £6,000
Cr trade receivables £6,000
B. Dr trade receivables £6,000
Cr provision for doubtful debts £6,000
C. Dr cash £6,000
Cr trade receivables £6,000
D. Dr provision for doubtful debts £6,000
Cr bad debt expense £6,000
19. Which of these adjustments represents the application of the concept of prudence?
A. Recognition of prepayments for administrative expenses.
B. Recognition of a provision for doubtful debts.
C. Recognition of depreciation for property, plant and equipment.
D. Recognition of the corporation tax expense.
20. Charlene Ltd issues 1,000 50p ordinary shares in exchange for cash of £2,000. What impact will this transaction have on the share capital account?
A. Increase of £500.
B. Increase of £1,000.
C. Increase of £2,000
D. No effect.
SECTION B
Attempt all questions
Total marks available = 60
21. The Westbourne food company Limited produces crisps which it sells in standard packets of 25 grams and supersize packets of 250 grams. These are supplied to their customers – mainly small shops, but also to one supermarket – in boxes containing either 100 standard packets or 8 supersize packets.
Sales for the year are budgeted as follows:
Boxes of Boxes of
Standard supersize
Shops 7,000 10,000
Supermarket 3,000 5,000
Currently the company calculates its basic selling price on the basis of the cost of producing crisps (which is 40 pence per 100 grams). All other costs are treated as overhead and allocated on the basis of product weight, with a mark-up on full cost of 35% on standard and 25% on supersize. The costs absorbed in this way amount to £153,400. The prices are rounded to the nearest pence to arrive at the exact price per packet. The supermarket obtains a discount of 5p per standard packet and 32p per supersize packet.
Required:
a) Calculate the basic price, charged to shops, and the discounted supermarket price of both the standard packet and the supersize packet. (6 Marks)
b) A new management accountant is concerned that the overhead includes the cost of packaging. He therefore recalculates the cost of the product, treating the packaging costs as direct costs, on the basis of the following information:
Each packet has a wrapper, costing 4 pence for standard or 12 pence for supersize.
The boxes used for delivery cost £1.50 each
Calculate the unit cost of each type of pack on the new basis. (6 Marks)
c) Comment on the findings in b). (2 Marks)
TOTAL (14 Marks)
22. Littlemore Limited produces a single product, and uses a standard costing system based on absorption costing.
Standards per unit are as follows:
£
Selling price 12.50
Raw Material (kg) 0.25 @ 8.00
Direct Labour (hours) 1/6 @ 24.00
Variable overhead 1/6 @ 6.00
Fixed overhead 3.50
In the period under review, the company produces and sells 53,000 units for £678,400. There was a favourable material volume variance of £4,240. The actual cost of raw material was 2.5% more than standard per kg. There was an adverse labour rate variance of £5,830. The actual time taken to produce units was, on average, 10% higher than standard. There was a favourable variance of £2,915 on the price of variable production overheads, which are allocated on the basis of labour hours. Actual fixed costs amounted to £170,000, which was £5,000 less than the budgeted amount for the year.
Required:
a) Produce a statement calculating contribution and profit at standard cost, for one unit and 53,000 units. (4 Marks)
b) Produce a statement calculating actual contribution and profit for the 53,000 units sold. (9 Marks)
c) What is the planned volume of output in units? (1 Mark)
(Total 14 Marks)