ACMA Class Test 1

Date: 02-11-2020
Answer all the 3 questions. (40 marks)

Problem 1
The following transactions occur in the purchase and issue of a material.
January 2 Purchased 5,000 units at Rs.5 per unit.
20 Purchased 1,250 units at Rs.5.50 per unit
Feb 5 Issued 2,500 units
10 Purchased 4,500 units at Rs.6 per unit
12 Issued 4,000 units
March 2 Issued 1,500 units
5 Issued 750 units
15 Purchased 5,750 units at Rs.6.50 per unit
20 Issued 4,250 units
Prepare stores ledger account using FIFO Method and Weighted Average method. (20
marks)

Problem 2
(a) A skilled worker is allowed to take 9 hours to complete a job on daily wages and 6
hours on a scheme of payment by results. His daily rate is Rs.75 per hour. The
material cost is Rs.400 and the overheads are recovered at 150 per cent of the total
direct wages. Calculate the factory cost of the product under (i) piece-work plan, (ii)
Halsey Plan and (iii) Rowan Plan, assuming work is completed in 6 hours. (5 marks)
(b) From the following data provided to you, find out the labour turnover rate by
applying (a) Flux method, (b) Replacement method, and (c) Separation method.
Number of workers on the payroll: At the beginning of the month, 500; At the end of
the month, 600. During the month, 5 workers left, 20 persons were discharged and
75 workers were recruited. Of these, 10 workers were recruited in the vacancies of
those leaving, while the rest were engaged for an expansion scheme. (5 marks)
Problem 3
XYZ Ltd. has three production departments (P, Q, and R) and two service departments (X
and Y). The following data relate to these departments:

Determine overhead recovery rate per hour for production departments, if X’s expenses
are distributed to P, Q, R, and Y in the ratio of 2 : 3 : 4 : 1 and Y’s expenses are distributed in
the ratio of 4 : 2 : 3 : 1 to P, Q, R, and X respectively. (10 marks)