Surname

Centre
No.

Initial(s)

Paper Reference

6 0 0 2

Candidate
No.

0 1

Signature

Paper Reference(s)

6002/01

Examiners use only

London Examinations GCE

Team Leaders use only

Accounting (Modular Syllabus)

Advanced Subsidiary/Advanced Level
Unit 2: Corporate and Management
Accounting
Friday 5 June 2009 Morning
Time: 3 hours

Question Leave
Number Blank

1
2
3
4
5

Materials required for examination

Items included with question papers

Nil

Source booklet

Instructions to Candidates
In the boxes above, write your centre number, candidate number, your surname, initial(s) and signature.
Answer FIVE questions, choosing TWO from Section A and THREE from Section B.
Indicate which question you are answering by marking the box ( ).
If you change your mind, put a line through the box ( ) and then indicate your new question with
a cross ( ).
All calculations must be shown.
Write your answers in the spaces provided in this question paper.
Do not return the insert with the question paper.

Information for Candidates

The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).
There are 7 questions in this question paper. The total mark for this paper is 200.
There are 40 pages in this question paper. Any blank pages are indicated.
Calculators may be used.
The source material for use with questions 1 to 7 is in the enclosed source booklet.

Advice to Candidates
Write your answers neatly and in good English.

Total
This publication may be reproduced only in accordance with
Edexcel Limited copyright policy.
2009 Edexcel Limited.
Printers Log. No.

M33447A
W850/6002/57570 4/5/4/

*M33447A0140*

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SECTION A
Answer TWO questions from this section.
If you answer question 1, put a cross in this box (

).

Source material for question 1 is on pages 2 and 3 of the source booklet.

1.

(a) Prepare the balance sheet for Oceanic Fruit Trading plc as at 31 March 2009 in
accordance with format one of the Companies Act 1985.
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(b) A companys balance sheet is more important than its profit and loss account.
Evaluate this statement.
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(12)

Q1

(Total 52 marks)

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If you answer question 2, put a cross in this box (

).

Source material for question 2 is on pages 4 and 5 of the source booklet.

2.

(a) Complete the column to show the Variances, clearly stating whether Adverse or
Favourable, for the month of April 2009.
Budget

Actual

Variance

168 000

159 750

Material Costs

27 000

30 160

Labour Costs

29 440

29 016

Variable Overheads

12 310

13 358

= Cost of Goods Sold

68 750

72 534

Gross Profit

99 250

87 216

58 500

58 500

40 750

28 716

Sales
Less

Fixed Overheads
Net Profit

(8)

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(b) Calculate for the month of April each of the following:

(i) the quantity of material used in the actual production of one loaf
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(ii) the material usage variance, stating the formula used
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(iii) the material price variance, stating the formula used.

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(6)
(c) Calculate for the month of April each of the following:
(i) the number of hours worked by each of the 32 workers
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(4)
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(ii) the labour efficiency variance, stating the formula used

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(6)
(iii) the labour rate variance, stating the formula used.
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(d) Study the budget and actual figures, and the information given for April 2009.
Evaluate the most appropriate actions to achieve the 40 000 net profit target required
by the directors.
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12

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(12)

Q2

(Total 52 marks)

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If you answer question 3, put a cross in this box (

).

Source material for question 3 is on pages 6 and 7 of the source booklet.

3.

(a) Calculate:
(i) the purchase price of Wessex Quarries Limited
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14

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(ii) how many shares the members of Wessex Quarries Limited received in
Roadworks Limited.
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(b) In the books of Highway Connections Limited, prepare the:

(i) Realisation account
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(8)

16

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(ii) Sundry shareholders account.

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(c) Prepare the balance sheet of Roadworks Limited as at 1 April 2009.

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Angelina was a shareholder in Highway Connections Limited.

(d) Evaluate the merger from the point of view of Angelina.
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(12)

Q3

(Total 52 marks)
TOTAL FOR SECTION A: 104 MARKS

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SECTION B
Answer THREE questions from this section.
If you answer question 4, put a cross in this box (

).

Source material for question 4 is on pages 8 and 9 of the source booklet.

4.

(a) Prepare, for the first three months of trading for Eezysnooze Limited:
(For each of the three months, the budgets should show total figures for EACH
month, NOT weekly figures)
(i) A purchases budget in pounds (s)
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(ii) A purchases budget in units (beds)
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(iii) A production budget in units (beds)
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(3)

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(iv) A sales budget in units (beds)

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(3)
(v) A stock budget in units (beds). The budget should show the number of units
going into stock each month, and the total number of units in stock at the end of
each month.
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(6)

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(vi) A creditors budget in pounds (s) showing the creditors figure at the end of each
month
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(3)
(vii)A debtors budget in pounds (s) showing the debtors figure at the end of each
month.
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Production is determined by the maximum production capacity of the factory, NOT by the
number of beds ordered by customers.
(b) Evaluate the decision to produce a quantity determined by the maximum capacity of
the factory instead of producing a quantity determined by customers orders.
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(8)

Q4

(Total 32 marks)

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If you answer question 5, put a cross in this box (

).

Source material for question 5 is on pages 10 and 11 of the source booklet.

5.

(a) Calculate, for the year ended 31 March 2008:

(i) Earnings per ordinary share
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(ii) Dividend paid per share
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(iii) Price/Earnings ratio
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(iv) Dividend cover.

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(b) Calculate, for the year ended 31 March 2009:
(i) Total ordinary dividend paid for the year
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(ii) Share price at 31 March 2009
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(iii) Net profit for the year after interest and tax
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(iv) Dividend yield
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(c) Evaluate the performance of Oriental Tea plc in the year ended 31 March 2009,
compared to the year ended 31 March 2008.
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Q5

(Total 32 marks)

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If you answer question 6, put a cross in this box (

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Source material for question 6 is on page 12 of the source booklet.

6.

(a) Calculate for the project the:

(i) payback period, showing your answer in years and months
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(14)

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(ii) average rate of return.

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(b) Evaluate the project for the company, considering both financial and non-financial
factors.
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(8)

Q6

(Total 32 marks)

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If you answer question 7, put a cross in this box (

).

Source material for question 7 is on page 13 of the source booklet.

7.

(a) (i) Calculate the estimated profit or loss for each of the fields of the Northern
Region for June 2009.
(ii) If all three fields are to be reopened, calculate the total estimated profit for the
Northern Region.
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(12)

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(b) Calculate the estimated profit or loss, and the contribution, made by each of the three
gas fields, per BTU, for the month of June 2009.
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(12)

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(c) Evaluate the figures to make a decision as to the future of each of the three gas fields,
using marginal costing.
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(8)

Q7

(Total 32 marks)
TOTAL FOR SECTION B: 96 MARKS
TOTAL FOR PAPER: 200 MARKS
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