CAPE Accounting Unit 2 · 2006 · Paper 2

20 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)4 marksCompute the total variable costs incurred for the current period.
2. 1(a)(ii)3 marksCompute the total fixed costs incurred for the current period.
3. 1(a)(iii)4 marksCompute the total product costs incurred for the current period.
4. 1(a)(iv)3 marksCompute direct materials used for the current period.
5. 1(a)(v)3 marksCompute total manufacturing overhead for the current period.
6. 1(a)(vi)5 marksCompute cost of goods manufactured for the current period.
7. 1(a)(vii)4 marksCompute cost of goods sold for the current period.
8. 1(b)(i)6 marksAssuming fixed costs remain constant between 800 and 1300 dinette sets, determine whether the order should be accepted. Show supporting workings.
9. 1(b)(ii)3 marksList THREE qualitative factors that should be considered by a company when evaluating whether or not to accept a special order.
10. 2(i)4 marksDetermine an activity rate for each of the four activities.
11. 2(ii)8 marksCalculate the total overhead cost assigned to each product in the cutting department using the rates computed in part (i).
12. 2(iii)2 marksDetermine the unit activity (overhead) cost for each product in the cutting department.
13. 2(iv)21 marksPrepare a process-costing worksheet for the cutting department for the current period using the weighted-average process costing method.
14. 3(a)(i)3 marksPrepare a schedule of cash collections on accounts receivable for July, August, and September.
15. 3(a)(ii)5 marksPrepare a schedule to estimate merchandise purchased for July, August, and September.
16. 3(a)(iii)4 marksPrepare a schedule of estimated cash payments for accounts payable (merchandise purchases) and operating expenses for July, August, and September.
17. 3(a)(iv)9 marksPrepare a cash budget for each of the three months (July, August, and September).
18. 3(a)(v)1 markOn the basis of the cash budget, discuss whether it is likely that RG Wholesalers will be able to repay the $200 000 loan to Caribbean Dominion Bank at the end of September.
19. 3(b)(i)12 marksCompute the Net Present Value of the three pieces of equipment.
20. 3(b)(ii)1 markBased on your calculations in part (i), state which is the most attractive opportunity for RG Wholesalers.