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CONFIDENTIAL

AC/APR 2010/ACC165/211

UNIVERSITl TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

COST ACCOUNTING ACC165/211 APRIL 2010 3 HOURS

INSTRUCTIONS TO CANDIDATES This question paper consists of five (5) questions. Answer ALL questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) the Question Paper an Answer Booklet - provided by the Faculty

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This examination paper consists of 7 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

Cotton and Silk. Wages paid to workers in Design & Cutting Department and Sewing Department. 5. Required: Classify cost items 1 to 8 above according to their Cost Behaviour. Rent of factory building. physical stock count showed a balance of 35 kilos. Supervisor's salary. Design & Cutting Department and Sewing Department. Raw materials. 3. 2. (8 marks) c) An organisation should have an efficient system of storekeeping. Cotton and Silk.CONFIDENTIAL QUESTION 1 a) 2 AC/APR 2010/ACC165/211 PERMATA COMEL Sdn Bhd manufactures and sells high quality of children's wear made from basic raw materials. 8. Among the costs involved in the business operation of PERMATA COMEL Sdn Bhd are as follows: 1. Designer's fees. State two (2) advantages for having a system of storekeeping. On 30 April 2010. Maintenance and repair cost for sewing machine. Depreciation of sewing machine. Water and electricity expenses. The garments are made in two production departments. (8 marks) b) The following transactions took place during the month of April 2010 in respect of material Ml 777 Date 1 April 8 April 10 April 15 April 18 April 24 April 27 April 28 April 29 April Transactions Balance brought forward 150 kilos at RM36 per kilo Purchased 300 kilos at RM37per kilo Issued 400 kilos Purchased 500 kilos at RM40 per kilo Purchased 300 kilos at RM34 per kilo Issued 700 kilos Purchased 450 kilos at RM30 per kilo Issued 500 kilos Return to supplier 50 kilos The materials returned to supplier was purchased on 27 April 2010. 6. 4. (4 marks) (Total: 20 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL . 7. You are required to prepare a store ledger card to record the above transaction using the First-In-First-Out (FIFO) method of pricing.

000 - The expenses of store is apportioned to Machine Shop at 40% and another 60% to Assembly Shop. Calculate your answer to the nearest Ringgit.000 12.000 40.000 16.000 62.000 10.000 24.CONFIDENTIAL QUESTION 2 3 AC/APR 2010/ACC165/211 JMA BHD.000 Assembly (RM) 22.300 150 300 80.000 15.000 50. of machine hours 2.000 25.600 53.000 Store (RM) 11.500 18.000 85. The service cost centre is a store where raw materials are kept.000 25.000 14.000 45.000 Store 200 200 100 50.000 Machine Floor space (square metre) Light points (no of points) Horse power of machines (kwh) Value of machines (RM) No. consists of two production cost centres and a service cost centre.000 15. Required: i) Prepare JMA Bhd Overhead Analysis Sheet for April 2010.000 Assembly 2.000 30. The following are the allocated costs for the month of April 2010: Machine (RM) 30. The production cost centres are Machine Shop and Assembly Shop.000 60. an engineering company. (16 marks) Calculate appropriate overhead absorption rates (OAR) for each of the two Production departments below using the following basis: Machine Shop Assembly Shop Machine hours Labour hours (2 marks) (Total: 18 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL ii) . of labour hours No.000 Direct material Indirect material Direct wages Indirect wages Other costs (RM): Machinery power Lighting Depreciation on machine Maintenance of building Rent and rates The following details are available: 90.000 100 600 60.

80/hr PROCESS 2 - 2.50/hr RM4.614 Factory overhead (to be absorbed based on direct labour cost) 80% Actual output 3. The output of Process 1 is transferred to Process 2 before it is ready to be distributed to retailers.800 kgs Direct labour 1.50 per kg The workers are paid according to the hours worked as follows: Up to 1.200 hrs RM1.CONFIDENTIAL QUESTION 3 4 AC/APR 2010/ACC165/211 A company within the food industry mixes powdered ingredients in two different processes to manufacture one product. (4 marks) (Total: 20 marks) RM4.455 70% 3.800 hrs Direct expenses RM2.40 per kg © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL .500 kgs Expected output 90% of input Scrap value RM0.100 kgs 95% of input RM0. Details of the process costs are as follows PROCESS 1 Direct materials @ RM12 per kg 3.200 hours From 1.000 hours Required: a) Prepare the following accounts i) ii) iii) iv) v) Process 1 Process 2 Normal loss Abnormal loss Abnormal gain (16 marks) b) State the differences between normal loss and abnormal loss.201 hours to 3.

000 units per month Production is above 10. The company is expected to commence its operation in 2010.500 units per month RM3. You have been assigned by the management to analyse the following data pertaining to its operation for 2010: RM 1.000 units per month RM4. calculate the target sales (units) in order to achieve the same profit as the 2nd proposal.000 units per month Required: a) For each of the proposal. (2 marks) (Total: 22 marks) c) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL .50 9. calculate for one year: i) ii) i) Break-even point (in units and value) Margin of safety (in units and value) Net profit (15 marks) b) Using the 1st proposal information.50 0.500 RM5.CONFIDENTIAL QUESTION 4 5 AC/APR 2010/ACC165/211 Syarikat UNGGUL is a newly set up company that plans to produce and sell a single product.20 12.250 The management has two (2) proposals for their operation in year 2010: Proposal 1 Selling price per unit Production and sales Proposal 2 Selling price per unit Production and sales RM3. (3 marks) Define the term 'breakeven point'.20 Production cost per unit Selling and distribution cost per unit Monthly fixed costs: Production is less than 10. (2 marks) d) Give two (2) advantages of the break-even analysis.

The price is expected to remain unchanged in the year 2010. it is forecasted that there will be a drop in sales unit for TA I and TA II by 5% and 8% respectively.200 kg The company plans to increase the closing stock of finished goods by 10% and to decrease the closing stock levels of raw materials by 10% in 2010.000 Selling price per unit (RM) 400 320 Selling prices are expected to be increased by 10% in year 2010.000 kg 2. The company is preparing its operational budget for year 2010. © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL . As for TA II.000 units 2. Other additional information Opening Stock in 2010 TAI TAII MAT1 MAT 2 Quantity 8. As a result of the increased selling prices. Raw Materials The company uses two types of raw materials: MAT 1 and MAT 2. The main products are TA I and TA II. Sales The sales in year 2009 are as follows: Products TAI TAII Sales Volume (Units) 15. Direct Labour The company pays all its workers at the same rate of RM10 per hour.000 25.CONFIDENTIAL QUESTION 5 6 AC/APR 2010/ACC165/211 TEQHNOPARTS Sdn Bhd is a local company that manufactures and sells spare parts to various repairs centers.000 units 5. It is estimated that 6 hours are required to produce one unit of TA I and 4 hours to produce one unit of TAII. Each unit of TA I requires 3kg of MAT 1 and 4kg of MAT 2. it uses 2kg of MAT 1 and 3 kg of MAT 2. These materials are purchased from an outside supplier at a current price of RM25 per kg for MAT 1 and RM20 per kg for MAT 2. The following information is available: a.

i) ii) iii) iv) Sales budget (in units and in RM) Production budget (units) Materials usage & material purchase budget (in Kg and in RM) Direct labor budget (in hours and in RM) (17 marks) b) Give three (3) advantages of budgeting. (3 marks) (Total: 20 marks) END OF QUESTION PAPER © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL .CONFIDENTIAL Required: a) 7 AC/APR 2010/ACC165/211 Prepare the following budgets of TECHNOPARTS Sdn Bhd for the year ended 2010.