CAPE Accounting Unit 2 · 2018 · 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)2 marksCalculate the number of employees required in the Assembling Department to meet the production target of 1680 units.
2. 1(a)(ii)8 marksCalculate the weekly pay for Scott and Celia for that week.
3. 1(b)(i)8 marksPrepare a cost comparison for the manufacture and purchase of the subassembly component.
4. 1(b)(ii)1 markState the decision that Zamore Ltd should make regarding the subassembly component, based on the cost comparison in (b)(i).
5. 1(c)(i)1 markDefine the term 'EOQ inventory model'.
6. 1(c)(ii)2 marksState TWO assumptions of the EOQ model.
7. 1(c)(iii)6 marksDetermine the number of production runs for Zamore Ltd, using the EOQ inventory model. (Note: Replace ordering cost by set-up costs).
8. 1(c)(iv)3 marksAssuming Zamore Ltd is currently incurring total annual set-up and carrying costs of $10 000, calculate the firm's savings when the EOQ inventory model is applied.
9. 1(d)(i)2 marksOutline ONE importance of chemical waste disposal.
10. 1(d)(ii)2 marksState TWO guidelines which must be followed when disposing of solid chemical waste.
11. 2(a)4 marksCompute the predetermined factory overhead rate for EACH department.
12. 2(b)(i)5 marksCalculate the total overhead cost of Job 748.
13. 2(b)(ii)7 marksDetermine the unit cost of Job 748, which consists of 200 units of product.
14. 2(c)(i)9 marksCalculate the per unit value of closing inventory using marginal costing.
15. 2(c)(ii)10 marksPrepare the Income Statement for Lasmoy Ltd using absorption costing.
16. 3(a)6 marksOutline THREE objectives of budgeting.
17. 3(b)(i)8 marksPrepare, for EACH of the months of August, September and October 2018, the production budget.
18. 3(b)(ii)13 marksPrepare, for EACH of the months of August, September and October 2018, the schedule of direct materials required.
19. 3(c)(i)4 marksExplain the concept of 'standard costing'.
20. 3(c)(ii)4 marksState TWO types of standard costing and explain ONE type.