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D1897 answer booklet.

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abc
2003 standards

Intermediate
NVQ/SVQ in Accounting Level 3, Unit 6
A/101/8104

SIMULATION

D1897 Recording and Evaluating


Costs and Revenues

Answer Booklet
To be completed by the candidate
Candidate name
Registration number
AAC code
This is my own unaided work
Signed Date
To be completed by the assessor
Assessor name Date
Overall simulation result: Satisfactory Y/N
Comments:

Note to assessor: This booklet must remain sealed until the time of the assessment

Note to candidate: This booklet must be returned to your assessor

AAT 2003
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Part one
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Answers (Task 1)
STORES RECORD CARD

Materials description: 8cm black zips - box of 30 Maximum quantity: 37


Code no: MZ174 Minimum quantity: 15
Reorder level: 20
Reorder quantity: 18

Receipts Issues Stock balance


Date Document Qty Price per Total Document Qty Price per Total Qty Price per Total
2003 number box (£) (£) number box (£) (£) box (£) (£)

6 Oct 2 6.09 12.18


20 6.10 122.00

22 134.18

7 Oct 871 20 6.12 122.40 2 6.09 12.18


20 6.10 122.00
20 6.12 122.40

42 256.58

7 Oct 912 2 6.09 12.18 12 6.10 73.20


8 6.10 48.80 20 6.12 122.40

10 60.98 32 195.60

Part 1 page 4
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Answers (Task 2)
MATERIALS REQUISITION

Department: Sewing/finishing Document no: 917


Date: 08/10/2003

Code no Description Quantity Cost office use only


Value of issue (£)

MZ174 8 cm black zips, boxes of 30 8

MATERIALS RETURNED

Department: Sewing/finishing Document no: 62


Date: 09/10/2003

Code no Description Quantity Cost office use only


Value of issue (£)

MZ174 8cm black, boxes of 30 1

Part 1 page 5
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Answers (Task 3)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 1 page 6
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Answers (Task 4)

PERFECT PURSES LIMITED


PIECEWORK OPERATION CARD

Operative name: Julie Atkins Department: Cutting


Clock number: P27
Week beginning: 13 October 2003

Mon Tues Wed Thurs Fri

Total metres of fabric cut 670 645 676 662 653

Metres of scrap 24 22 0 18 17

Piecework payment £ £ £ £ £
@ £0.10 per metre cut

Bonus payable £ £ £ £ £

Total payable for day* £ £ £ £ £

Total wages payable for week:


£
Direct wages

Indirect wages

Total wages

* Guaranteed daily wage of £65 is payable if piecework payment plus bonus amounts to less
than £65.

Supervisor’s signature: J Richmond

Part 1 page 7
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Answers (Task 5)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 1 page 8
Production overhead analysis sheet for 2004
Sewing/
Production overhead item Total Cutting finishing Packing Stores Canteen
£000 £000 £000 £000 £000 £000
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Indirect materials 40 20 12 4 2 2
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Answers (Task 6)
15:28
Page 9

Total departmental overheads

Apportion canteen total - ( )

Apportion stores total - ( )

Total production dept overheads

Part 1 page 9
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Answers (Task 7)

Working paper: 2004 budgetary planning


Calculation of predetermined production overhead absorption rates for 2004

Cutting department

Sewing and finishing department

Packing department

Part 1 page 10
Sample calculations: working paper
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Revising the method of service department re-apportionments


Sewing/
Production overhead item Total Cutting finishing Packing Stores Canteen
£000 £000 £000 £000 £000 £000
21/08/2003

Total departmental overheads


(from task 6)
15:28

Answers (Task 8)

Apportion stores total - ( )


Page 11

Apportion canteen total - - ( )

Total production dept overheads

Part 1 page 11
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Answers (Task 9)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 1 page 12
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Answers (Task 10)


Journal entry for production overheads

October 2003

Entries for overhead absorbed during the month

Debit (£) Credit (£)

Work in progress: cutting dept

Work in progress: sewing and finishing dept

Work in progress: packing dept

Production overhead control

Entries for overhead under/over absorbed during the month

Debit (£) Credit (£)

Overhead over/under absorbed (P+L)

Production overhead control

Part 1 page 13
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Answers (Task 10, continued)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 1 page 14
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Part two
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Answers (Task 11)


Workings for determination of revenue and cost behaviour patterns

Sales revenue

Purses cost

Delivery charges

Packing labour and overhead cost

Other overhead cost

Part 2 page 16
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Answers (Task 11, continued)


Perfect Purses Limited: mail order division
Revised forecast for December 2003

December

Number of cases to be sold 650

Purses cost

Delivery charges

Packing labour and overhead cost

Other overhead cost

Total costs

Sales revenue

Profit

Space for workings

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Answers (Task 12a)

Perfect Purses Limited: mail order division


Forecast for December 2003: increased sales volume

December

Number of cases to be sold 720

Purses cost

Delivery charges

Packing labour and overhead cost

Other overhead cost

Total costs

Sales revenue

Profit

Space for workings

Part 2 page 18
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Answers (Task 12b)

Perfect Purses Limited: mail order division


Forecast for December 2003: increased sales volume

Calculation of breakeven point and margin of safety: working paper

Part 2 page 19
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Answers (Task 12c)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 2 page 20
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Answers (Task 13a)


Working paper for the financial appraisal of purchase of delivery vehicle

Year Cashflow Discount factor Present value


£ @ 10% £

2003 1.000

2004 0.909

2005 0.826

2006 0.751

2007 0.683

Net present value

Working space for calculation of payback period

Part 2 page 21
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Answers (Task 13b)

INTERNAL MEMO
To:
From:
Subject:
Date:

Part 2 page 22
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AAT Simulation
Answer Booklet

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