Material Control and Inventory Valuation · CAPE Accounting Unit 2

26 past-paper questions on Material Control and Inventory Valuation, part of Module 1: Costing Principles, from every CAPE Accounting Unit 2 paper on Quelpr.

1. 1(a)(iv)3 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Compute direct materials used for the current period.
2. 1(b)(i)a)5 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Calculate ending inventory, cost of goods sold, and gross profit under the First-in-First-out (FIFO) inventory valuation method.
3. 1(b)(i)b)5 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Calculate ending inventory, cost of goods sold, and gross profit under the Last-in-First-out (LIFO) inventory valuation method.
4. 1(b)(i)c)4 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Calculate ending inventory, cost of goods sold, and gross profit under the Weighted average inventory valuation method.
5. 1(b)(ii)1 mark· CAPE Accounting Unit 2 · 2009 · Paper 2Indicate which of the valuation methods is the most appropriate if management's goal is to produce the most up-to-date inventory valuation on the Balance Sheet.
6. 1(a)(i)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2List THREE components of 'carrying cost'.
7. 1(a)(ii)2 marks· CAPE Accounting Unit 2 · 2014 · Paper 2State TWO components of 'ordering cost'.
8. 1(a)(iii)5 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the recommended order quantity (E.O.Q.) for the tablets using the formula: \text{E.O.Q.} = \sqrt{\frac{2 D C_o}{C_c}} where D = Annual demand, C_c = Carrying cost per unit, and C_o = Order cost per…
9. 1(a)(iv)2 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate how many times orders should be placed per year.
10. 1(a)(v)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the reorder point in units using: \text{Maximum usage} \times \text{maximum lead time}
11. 1(b)(i)2 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Explain what happens under the FIFO stock valuation method to the value of the materials issued.
12. 1(b)(ii)2 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Explain what happens under the FIFO stock valuation method to the value of closing inventories.
13. 1(b)(i)2 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Explain what happens to the cost of material issued.
14. 1(b)(ii)2 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Explain what happens to the value of closing inventory.
15. 1(b)(iii)2 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Explain what happens to profit.
16. 1(c)(i)3 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Compute the value of the closing inventory of raw materials for March 2016 using the First-in, first-out (FIFO) method.
17. 1(c)(ii)3 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Compute the value of the closing inventory of raw materials for March 2016 using the Average cost method.
18. 1(d)4 marks· CAPE Accounting Unit 2 · 2017 · Paper 2List TWO principles of material control and give an example of EACH principle.
19. 1(c)(i)1 mark· CAPE Accounting Unit 2 · 2018 · Paper 2Define the term 'EOQ inventory model'.
20. 1(c)(ii)2 marks· CAPE Accounting Unit 2 · 2018 · Paper 2State TWO assumptions of the EOQ model.
21. 1(c)(iii)6 marks· CAPE Accounting Unit 2 · 2018 · Paper 2Determine the number of production runs for Zamore Ltd, using the EOQ inventory model. (Note: Replace ordering cost by set-up costs).
22. 1(c)(iv)3 marks· CAPE Accounting Unit 2 · 2018 · Paper 2Assuming 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.
23. 1(a)(i)6 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Outline THREE differences between the FIFO and the LIFO inventory valuation methods.
24. 1(a)(ii)8 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Compute EACH of the following costs at 30 May 2019 using the FIFO method: • Ending inventory cost • Cost of goods sold
25. 1(a)(iii)4 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Compute the gross profit for Trelawney Inc. using the FIFO method if the items sold during May were at a sales price of $11 per unit.
26. 1(b)4 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Compare the impact on the gross profit of an enterprise using the FIFO and LIFO methods during periods of inflation.