CAPE Accounting Unit 2 · 2011 · 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)11 marksPrepare a schedule of cost of goods manufactured for the year ended December 31, 2010.
2. 1(a)(ii)4 marksCalculate Horsford Company's cost of goods sold for the year ended December 31, 2010.
3. 1(b)(i)3 marksIdentify THREE major elements in the cost of a manufactured product.
4. 1(b)(ii)6 marksExplain EACH of the following types of costs and give ONE example of EACH: a) Product cost b) Period cost c) Mixed cost
5. 1(b)(iii)2 marksDistinguish between prime cost and conversion cost.
6. 1(b)(iv)1 markIdentify ONE method that is used to separate mixed cost into its components.
7. 1(b)(v)3 marksExplain how direct and indirect costs are typically treated in an income statement of a service organization.
8. 1(c)(i)3 marksCompute the pre-determined manufacturing overhead rate for the year.
9. 1(c)(ii)2 marksCalculate the amount of manufacturing overhead applied during January 2010.
10. 2(a)(i)4 marksAssuming that Lawson Bravo Company uses an absorption costing system, compute its operating income for the year.
11. 2(a)(ii)4 marksAssuming that Lawson Bravo Company uses a marginal costing system, compute its operating income for the year.
12. 2(a)(iii)2 marksReconcile the operating income figures computed in parts (a)(i) and (ii) above.
13. 2(b)15 marksPrepare a production report for Belmopan Company.
14. 2(c)(i)6 marksState THREE fundamental differences between activity-based costing and traditional costing systems such as process costing.
15. 2(c)(ii)4 marksExplain how cost drivers are selected in activity-based costing systems.
16. 3(a)6 marksDefine the term 'budget' and outline FOUR benefits of budgeting.
17. 3(b)(i)7 marksPrepare the cash collection schedule for the month of January 2011.
18. 3(b)(ii)4 marksPrepare the purchases schedule for the month of January 2011.
19. 3(b)(iii)4 marksPrepare the cash disbursement on purchases schedule for the month of January 2011.
20. 3(c)14 marksPrepare the cash budget for the month of January 2011.