Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
LCCI COST ACCOUNTING SERIES 3 2008

LCCI COST ACCOUNTING SERIES 3 2008

Ratings: (0)|Views: 263 |Likes:
LCCI COST ACCOUNTING SERIES 3 2008
LCCI COST ACCOUNTING SERIES 3 2008

More info:

Categories:Business/Law
Published by: celine7561_529120110 on Nov 26, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/02/2013

pdf

text

original

 
1 ASE 3016 2 06 13016/2/06
>f0t@W9W2`?[6ZBkBwGc#
 
 
CostAccounting
Level 3
Model Answers
Series 3 2008 (Code 3017)
 
Page 1 of 14
Cost Accounting Level 3
Series 3 2008
How to use this booklet
Model Answers have been developed by Education Development International plc (EDI) to offeradditional information and guidance to Centres, teachers and candidates as they prepare for LCCIInternational Qualifications. The contents of this booklet are divided into 3 elements:(1) Questions reproduced from the printed examination paper(2) Model Answers – summary of the main points that the Chief Examiner expected tosee in the answers to each question in the examination paper,plus a fully worked example or sample answer (where applicable)(3) Helpful Hints where appropriate, additional guidance relating to individualquestions or to examination techniqueTeachers and candidates should find this booklet an invaluable teaching tool and an aid to success.EDI provides Model Answers to help candidates gain a general understanding of the standardrequired. The general standard of model answers is one that would achieve a Distinction grade. EDIaccepts that candidates may offer other answers that could be equally valid. © Education Development International plc 2008All rights reserved; no part of this publication may be reproduced, stored in a retrieval system ortransmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwisewithout prior written permission of the Publisher. The book may not be lent, resold, hired out orotherwise disposed of by way of trade in any form of binding or cover, other than that in which it ispublished, without the prior consent of the Publisher.
 
Page 2 of 14
QUESTION 1
A company uses two raw materials (Material A and B) to manufacture its single product. Thecustomer requirement, for this product, for the next period is 4500 units. The finished product containsby weight, 40% material A and 60% material B.The following further information is available:(i) The product is manufactured in batches of 50 units(ii) Material A costs £5 per kg(iii) Material B costs £2 per kg(iv) Material A wastage rate 20% (by weight)(v) Material B wastage rate 25% (by weight)(vi) Product rejection rate 10%(vii) Finished weight of completed unit 5kg(viii) Material wastage of products A and B are sold backto the original supplier at the rate of £4 per kg and£1 per kg respectively(ix) Product rejects are sold at £3 per kg(x) Direct labour £400 per batch(xi) Variable overheads £100 per batch(xii) Fixed overheads £32,500 per period(xiii) Selling price £50 per unit(xiv) No stocks of finished products or raw materials are kept
REQUIRED
(a) Explain the difference between material wastage and product rejection.
 
(4 marks)(b) Calculate for the next period:(i) number of batches to be manufactured(ii) weight of material A and material B to be used(iii) income generated from the sale of material waste and product rejects.(10 marks)(c) Prepare a manufacturing profit and loss statement, in marginal costing format, for the next period.(6 marks)
(Total 20 marks)

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->