CAPE Accounting Unit 2 · 2002 · Paper 2

23 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)17 marksPrepare a schedule of cost of goods manufactured, taking into account the information contained in the income statement and the additional information provided.
2. 1(b)(i)7 marksCalculate the total relevant costs of EACH job.
3. 1(b)(ii)3 marksCalculate the incremental profit or loss associated with the acceptance of the Portland job.
4. 1(b)(iii)3 marksCalculate the incremental profit or loss associated with the acceptance of the Westmoreland job.
5. 1(b)(iv)5 marksDiscuss TWO additional factors which the company should consider in deciding whether to accept or reject these jobs.
6. 2(a)4 marksCalculate the predetermined overhead rates for the machining department and finishing department.
7. 2(b)(i)3 marksCalculate the total overhead cost allocated to Job ABQ31.
8. 2(b)(ii)6 marksPrepare the job cost sheet for Job ABQ31.
9. 2(b)(iii)1 markJob ABQ31 consisted of 400 units. What is the cost per unit?
10. 2(c)(i)13 marksCalculate the amount of machining department overhead allocated to Job ABQ31 using Activity-Based Costing.
11. 2(c)(ii)4 marksCalculate the cost per unit for the 400 units manufactured assuming that the finishing department still uses the traditional job costing method.
12. 2(d)4 marksCalculate the under or over allocated manufacturing overhead for the finishing department using the predetermined rate calculated in (a) and the information above.
13. 3(a)(i)1 markCalculate the company's contribution margin ratio.
14. 3(a)(ii)3 marksCompute the quarterly break-even point in units sold and in sales dollars.
15. 3(a)(iii)2 marksHow many units would have to be sold each quarter to earn a target profit of $90,000?
16. 3(a)(iv)3 marksUsing the sales level arrived at (iii) prepare a contribution income statement.
17. 3(a)(v)2 marksCompute the company's margin of safety in both dollar and percentage terms.
18. 3(a)(vi)1 markIf existing sales increase by $50,000 per quarter and there is NO change in fixed expenses, by how much would you expect quarterly net income to increase?
19. 3(a)(vii)6 marksManagement considers using a faster machine which increases variable expenses by 3.00 per unit while increasing sales by 20%, and retrenching a quality inspector paid 64,000 per year. Assuming these changes are made,…
20. 3(a)(viii)2 marksUsing the information contained in the requirement above calculate the new break-even point in units.
21. 3(b)(i)5 marksCalculate the price and efficiency variances for materials used in the production of Westext.
22. 3(b)(ii)5 marksCalculate the rate and efficiency variances for direct labour employed in the production of Westext.
23. 3(b)(iii)5 marksCalculate the variable overhead spending and efficiency variance.