Quelpr
11 marksOverheads and Manufacturing Accounts

CAPE Accounting Unit 2 · 2011 · Paper 2 · Question 1(a)(i)

Accounting data for Horsford Company for the year ended December 31, 2010 shows direct material purchases 880 000, indirect materials used 175 000, direct labour 940 000, other factory overheads 295 000, selling expenses 250 000, administrative expenses 360 000, sales 4 200 000. Inventory balances at Jan 01 and Dec 31 respectively are: Raw materials 230 000 and 140 000; Work in process 75 000 and 60 000; Finished goods 200 000 and $300 000.

Prepare a schedule of cost of goods manufactured for the year ended December 31, 2010.

This question uses a figure or table from the paper — you'll see it when you practise.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(ii)Calculate Horsford Company's cost of goods sold for the year ended December 31, 2010.[4 marks]
  2. 1(b)(i)Identify THREE major elements in the cost of a manufactured product.[3 marks]
  3. 1(b)(ii)Explain EACH of the following types of costs and give ONE example of EACH: a) Product cost b) Period cost c) Mixed cost[6 marks]
  4. 1(b)(iii)Distinguish between prime cost and conversion cost.[2 marks]
  5. 1(b)(iv)Identify ONE method that is used to separate mixed cost into its components.[1 mark]
  6. 1(b)(v)Explain how direct and indirect costs are typically treated in an income statement of a service organization.[3 marks]
  7. 1(c)(i)Compute the pre-determined manufacturing overhead rate for the year.[3 marks]
  8. 1(c)(ii)Calculate the amount of manufacturing overhead applied during January 2010.[2 marks]

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