5 marksOverheads and Manufacturing Accounts

CAPE Accounting Unit 2 · 2009 · Paper 2 · Question 1(c)(ii)

Financial and inventory data for Marwick Company for 2008 are provided.

Prepare an Income Statement for 2008.

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Other parts of this question

1(a)Classify each cost item (2 to 11) as being either a product (inventoriable) cost or a period (non-inventoriable) cost, using the provided table format.[5 marks]
1(b)(i)a)Calculate ending inventory, cost of goods sold, and gross profit under the First-in-First-out (FIFO) inventory valuation method.[5 marks]
1(b)(i)b)Calculate ending inventory, cost of goods sold, and gross profit under the Last-in-First-out (LIFO) inventory valuation method.[5 marks]
1(b)(i)c)Calculate ending inventory, cost of goods sold, and gross profit under the Weighted average inventory valuation method.[4 marks]
1(b)(ii)Indicate 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.[1 mark]
1(c)(i)Prepare a Cost of Goods Manufactured Statement for 2008.[10 marks]

More practice: the rest of this paper · more Overheads and Manufacturing Accounts questions · all CAPE Accounting Unit 2 past papers