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Cost and Management Accounting Questions

Course questions for Bcom

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Bernard Francis M
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64 views16 pages

Cost and Management Accounting Questions

Course questions for Bcom

Uploaded by

Bernard Francis M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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“W&KERERE! SINESS ¥CHOOL -_ COURSE WORK TWO E. BACHELOR OF BUSINE; ISTRATION OF Ee ABADEMIC YEARQDIONNO A ~ COURSE NAME: COSPE gpacto NG YEAR OF STUDY: IL ic y Sm F SO" DATE: 28th /OCT/2018 COURSE compet ‘i So TIME: 9:30 AM-1030AM SEMESTER: 0] INSTRUCTION: ATTEMPT ALL QUESTIONS Question One 2) Indidda's bakery, it takes 50 minu! 30% September, 2018, bread production stood al Cost t fit AIC Cu Pe 4 tos standard time te produce 5 loaves of bread. For the period endod {6,000 loaves and it took workers G00, hours. to complete production each hour being paid at UGX.2,000/= Required: Determine the wages paid to the workers at the end of September, 2018 under Halsey bonus scheme (6 Marks} 3) Pato Lid a Kenyan company operating a manufacturing business In Uganda. The company has Wo production deparments and twa service departinens. The data below hes been extracted from tne managment accounts of the company for the period that ended 34% August, 2078 Department: A B x Y Totals Primary Overhead costs 700,000 600,000 400,000 450.000 2,190,000 Budgeted Labour Hours 4,480 2,000 3,150 ‘Actual Overhead casts 1,900,000 880,000 1,950,000 Actual Labour Hours 1,000 4,800 2,800 Service departments redstibutetheircosts‘on the basis of pereentage pointes flows - wm 10% 100% 40% 20% - 100% Department X (Maintenance) 50% Department Y (Stores) 40% Required; Redistibute Service department costs to production depertmonts using simultaneous equation na (4.Marks) ion of overheads (6 Marks) iL Compute te overhead recovery rates, overheads recovered and any over ar under absorp Page 1 of2 Question Two. a) Brefiy differentiate between specific order costing and continuous costing system citing examples of industries where gach system can be best applied, (6 Marks) | ») Ketende manufacturing fim produces @ product that passes through one process. The following data have been extracted from its records representing the month of January 2018. Input materials 18,400Kgs @ 3,000/=. The folowing conversion costs were incurre Direc! iavuur hours were i,20u each paid ata raie of Ugx.iv, WO. ‘Additional material costs of Ugx.11, 600,000 Overheads were absorbed on the basis of direct labour hours at a rate of 3,000I- por hour, No loss was expected at in the proces and the final output was 17,000 units complete and 1,400 units of Glasing Work in Progress: Additonal materialé aro always added when the proosss is 80% complete, The degree of completion of closing Work In Prograss was as follows;- Additional materials 86% Direct labour 80% Overheads 70% Required. Statoment of Equivalent production (3 Marks) i. Statament of CostCPU (3 Marks) Wi, Statementof Valuation mel) (3 Marks) End of Question Paper Page 2 of2 gan OR Ee ae & YEAR OF STUDY: DI 3) DATE: 5 /NOV2016 TIME: 9:30 AM-10:30 AM - CoRSE NAMB: COST & MGT AYCOUNE COURSE CODE: BBA AL: ‘SEMESTER ‘ JNSTRUCTION: ANSWER ALL QUESTIONS QUESTION ONE: NICJANAT Beauty company makes two body products Baby Nunya and Baby Jinior and usually does product costing using the traditional absoxption costing technique. The company is now in the process of changing to the use of Activity Based costing: The following information about costs and volumes for the last quarter are sbown below; te z ak | ‘otal [Baby Ndwaya __| Baby Junior = Direct materials costper unit Ugx 200 Ugx 600.3 ‘Direct labour hours per uni Le 3 "Units produced and spld in a quarter. T1200 units 300 units | “otal overheads for the quarter pee i gx 2,000,000 Ugx 16,000,000 x} “Uzx 12,000,000 i [otal Ugx 30,000,000 ‘Other information Number of orders e100 1300 “Engineering hours at 1300. 2700 ‘Number of setups in | jee 100 400 ‘When using the absorption costing technique, the overhead absorption 36 is Uge 30,000 perdirect yar our, The direct labour rate is Ugx 40,000 per labour bour. The company has requested you yelp compute the different costs of production. equired: Compute; ~ i) The prime cost per unit of each product (4 marks) i) The Quarterly overheads ahsorbed per product using the aks srption costing technique (4maris; on the basis of direct labour hours. iii) The quarterly overhead cost per product using the activi) pased costing technique (@maris) 19) The overhead cost per unit of cach product using the activity based esting technique ] (@ marks) ¥) The cost per unit of each product using the Activity based costing technique. @2 mars) QUESTION TWO Buliisa company makes two joint pracnots A ond B, Ty #hé Inot saci : Sosts incurred to make these products amounted to Ugx 3,000,000, At the split-off point, the recorded output was 200kgs and 300kgs of product A and Product B respectively. All the unite {iat Were produced were sold. The products were sold as they were atthe split off poiat ata selling Price of Ugx 90,000 per ky and Ugx 120,000 per kg for A and B respectively. Required: Apportion the joint costs to joint products and compute the gross prolit from the sale of each Product using; The physical units méthod. ( marks) ii)The sales value method. (6 marks) END OF QUESTION PAPER Page 2 of2 a = ‘MIAKERERE UNIVERSITY BUSINESS SCHOOL } COURSE WORK TEST TWO FORT! BACHELOR OF SCIENCE IN ACCOUN ¢ WEAR 2014/15) COURSE NAME: COST & MANAGEMENT ACOGSINTING: YEAR OF STUDY:. TWO hak SEMESTER: wo DATE: SBN, 19 APRIL} ea ‘TIME: 8:00AM — 9:00 AM Nz z ss werructions 7S) a ; > Answer all the questions. + Fillall your answers in the answer sheet provided. Question One {@) Fxplain the difference between over absomplion and under absorption of overhead as used jn accounting for overbead costs “4 marks) (b) Uniler absorption or over absorption of overhead mazy arise due to soveral causes. State and explain these causes (8 marks) () Charona mannfactires four products A; B, C and Jp, The details of the four products and oO the relevant information that conoems them =e given below [Product ak A ae g ej 2 ‘Outputin omits / Ber eera ae: yoo; _—80 _120 ‘Cost per unit (Ugx) i | | (a) Direct material *140,000 | 175,000 105,000 | 210,000. (b) Direct labour 98,01 3,500 49,000| 73,500 Machine hours per unit __ eee apes ae Additional information ‘ei The four products are similar and are produced in prodvetion runs of 20 units and sold in, patches of 10 units. «The production overhead is currently absorbed by using 2 machine hourrate, and the total of the production overhead for the period has been analyzed as follows: . Machine department costs (rent, depreciation and supervision) — —Ugx.36,505,000 et up costs ; =Ugx. 18,379,000 Stosps receiving =U gx. 12,600,000 Inspectionquality control

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