CAPE Accounting Unit 2 · 2017 · Paper 2

22 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)17 marksPrepare a schedule of the cost of goods manufactured for the year ending 31 December 2016.
2. 1(b)(i)5 marksIdentify the unit costs which will be relevant to the decision to be made by Orchid Enterprise and calculate the total unit cost.
3. 1(b)(ii)3 marksShould the company accept the special order? Justify your answer.
4. 1(c)(i)3 marksCompute the value of the closing inventory of raw materials for March 2016 using the First-in, first-out (FIFO) method.
5. 1(c)(ii)3 marksCompute the value of the closing inventory of raw materials for March 2016 using the Average cost method.
6. 1(d)4 marksList TWO principles of material control and give an example of EACH principle.
7. 2(a)(i)4 marksName and describe ONE costing system, other than activity-based costing, which may be used to cost job XYZ.
8. 2(a)(ii)9 marksCalculate the unit cost for job XYZ using activity-based costing.
9. 2(b)(i)8 marksPrepare the income statement for 2016 using marginal costing.
10. 2(b)(ii)10 marksPrepare the income statement for 2016 using absorption costing.
11. 2(c)4 marksExplain the difference between 'absorption costing' and 'marginal costing'.
12. 3(a)(i)6 marksCalculate the break even point in units.
13. 3(a)(ii)3 marksCalculate the break even point in dollars ($).
14. 3(b)(i)2 marksCalculate the direct material price variance.
15. 3(b)(ii)2 marksCalculate the direct material quantity variance.
16. 3(b)(iii)2 marksCalculate the total direct material cost variance.
17. 3(b)(iv)2 marksCalculate the direct labour rate variance.
18. 3(b)(v)2 marksCalculate the direct labour efficiency variance.
19. 3(b)(vi)2 marksCalculate the total direct labour cost variance.
20. 3(c)5 marksOutline FIVE roles of a budget committee.
21. 3(d)(i)7 marksCompute the net present value (NPV) of this investment.
22. 3(d)(ii)2 marksBased on the NPV, state whether you would recommend that the machine be purchased and why.