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FCMA MOCK (mtqs)

Question No: 101

Marks : 10.00 / 10.00

(a) Equivalent number of units produced:

Material Conversion
Units completed 6500 6500

Ending units 1500 900

Total 8000 7400

(b) Cost per unit: Rupees

Department-1 cost per unit 75

Materials cost per unit 4

Labour cost per unit 15

Factory overhead cost per unit 10

Total 104

(c) Process Account:

Debit: Units Rupees

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Input from previous department 8000 600000

Materials 32000

Direct labour 111000

Factory overhead 74000

Total 8000 817000

Credit: Units Rupees

Finished goods 6500 676000

Closing w ork-in-process 1500 141000

Total 8000 817000

Question No: 102

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Description
Marks : 10.00 / 10.00

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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MONDAY TUESDAY WEDNESDAY

Actual production 4000 4500 4600

Standard hours allowed 80 90 92

Actual hours 80 80 80

Time saved 0 10 12

Basic wages (Rs.) 8000 8000 8000

Bonus (Rs.) 0 1000 1200

Total earnings (Rs.) 8000 9000 9200

Per unit labour cost (Rs.) 2 2 2

Question No: 103

Description
Marks : 10.00 / 10.00

Cost of Production Report:

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Quantity Schedule:
Units received from previous department 15000

Units completed and transferred out 7000

Units completed but not transferred 1000

Units in WIP closing 7000 15000

Cost charged to the Department:

Total Cost Unit Cost
Cost from preceding department 135000 9

Cost added by the department-2:

Material 90000 6

Labour 132500 10

Factory overhead 66250 5

Total cost to be accounted for 423750 30

Cost accounted for as follows:

Goods completed and transferred 210000

Goods completed but not transferred 30000

WIP closing inventory:

Cost from preceding department (WIP ending) 63000

Material –WIP 42000

Labour –WIP 52500

Factory overhead –WIP 26250 183750

Total cost accounted for 423750

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Question No: 104

Marks : 10.00 / 10.00

Ahmer Company Rs '000'

DEPARTMENT
(a) Cost Machining Assembly Handling
Fixed overhead 18000 26000 10000

Variable overhead 22500 40500 13000

Total overhead 40500 66500 23000

Allocation of service department cost:

Fixed overhead 5000 5000 10000

Variable overhead 6500 6500 13000

Total 52000 78000 0

(b) Direct Labour hour 26000 26000

Overhead rate 2 3

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Question No: 105

Marks: 10.00 / 10.00

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

M/s. Abid Rupees
General
7 Journal
Debit Credit
(i)
Material control – (Debit) 500000

Account payable (Purchased materials) 500000

(ii)
Work in process - Material 200000

Factory overhead control - Material 100000

Material control (Issued materials) 300000

(iii)
(a)
Payroll – (Debit) 2000000

Accrued Payroll – (Credit) 2000000

(b)
Work in process - Labour 1000000

Factory overhead control 400000

Admin salaries 400000

Sales salaries 200000

Accrued Payroll – (Credit) 2000000

(iv)
Accrued Payroll – (Debit) 2000000

Bank (Payment of payroll) 2000000

(v)
Factory overhead control (FOH) 800000

Account payable (FOH) 800000

(vi)
Work in process - FOH 800000

Applied FOH 800000

(vii)
Finished goods – (Debit) 1500000

Work in process – (Goods completed) 1500000

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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(viii)
(a)
Accounts Receivable 1200000

Sales 1200000

(b)
Cost of goods sold 1000000

Finished goods – (Credit) 1000000

Question No: 106

Marks: 10.00 / 10.00

(i)
Income Statement
Absorption Costing
Sales - Absorption 5000000

Less: Cost of goods sold:

Direct Material - Abosrption 1500000

Direct Labour - Abosrption 1000000

FOH Applied 1500000

Cost of Goods Sold 4000000

Fixed Selling Expenses 300000

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Variable Selling Expense 200000

Net Profit 500000

(ii)
Income Statement
Marginal Costing
Sales - Marginal 5000000

Less: Marginal Cost

Direct Labour - Marginal 1000000

Direct Material - Marginal 1500000

Variable Selling Expense 200000

Variable FOH 900000

Marginal Cost 3600000

Contribution Margin 1400000

Less: Fixed Expenses

Fixed Overhead 600000

Fixed Selling Expenses 300000

Net Profit 500000

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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Question No: 107

Marks : 10.00 / 10.00

Seema Limited
(i) Sales Volume Variance: 9000 UNFAV

(ii) Sales Price Variance: 6000 FAV

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI

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(iii) Materials price variance: 600 FAV

(iv) Materials usage variance: 1600 UNFAV

(v) Labour rate variance: 400 UNFAV

(vi) Labour efficiency variance: 1200 FAV

FCMA MOCK SYED SHAHBAZ RAZA ZAIDI