CAPE Accounting Unit 2 · 2015 · Paper 2

17 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)20 marksPrepare a schedule of cost of goods manufactured for the year ended 31 December 2014.
2. 1(a)(ii)6 marksCalculate Sicard Industries' cost of goods sold (Cost of Sales) for the year ended 31 December 2014.
3. 1(a)(iii)5 marksPrepare a schedule of Sicard Industries' selling and distributions costs for the year ended 31 December 2014.
4. 1(b)(i)2 marksExplain what happens under the FIFO stock valuation method to the value of the materials issued.
5. 1(b)(ii)2 marksExplain what happens under the FIFO stock valuation method to the value of closing inventories.
6. 2(a)10 marksCalculate the total cost of EACH job assuming overhead is applied at the rate of $12.50 per machine hour.
7. 2(b)(i)7 marksCalculate the activity rate for EACH activity.
8. 2(b)(ii)2 marksState TWO benefits of activity-based costing.
9. 2(c)8 marksCopy the list and identify the units of cost that should be applied for each item on the job cost card for services delivered.
10. 2(d)8 marksExplain the difficulties with costing a hairdo/haircut because of these four features.
11. 3(a)(i)6 marksCalculate the net book value (NBV) of Equipment Y183.
12. 3(a)(ii)3 marksCompute the initial investment associated with the proposed replacement of Equipment Y183 with Equipment X154.
13. 3(a)(iii)6 marksCompute the payback period for Equipment X154.
14. 3(a)(iv)8 marksCompute the net present value for the proposed replacement of Equipment Y183 with Equipment X154.
15. 3(a)(v)2 marksState whether Bernice Industries should purchase Equipment X154 and explain why.
16. 3(b)6 marksList SIX reasons why you would recommend the use of a standard costing system.
17. 3(c)4 marksState FOUR arguments against the use of budgeting as an accounting tool.