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Question 1: Marginal costing
Calculate the breakeven position in units: |
| Sales |
160,000 |
| Cost of sales |
112,000 |
| Gross profit |
48,000 |
| Fixed expenses |
25,000 |
| Variable expenses |
10,000 |
| Profit |
13,000 |
| Units sold |
50,000 |
|
52083
36458
32895
50000 |
Question 2: Marginal costing
Using the same information as question 1, calculate the breakeven in value: |
| Sales |
160,000 |
| Cost of sales |
112,000 |
| Gross profit |
48,000 |
| Fixed expenses |
25,000 |
| Variable expenses |
10,000 |
| Profit |
13,000 |
| Units sold |
50,000 |
|
£105,263
£166,666
£160,000
£116,666 |
Question 3: Marginal costing
Using the above information, calculate the gross profit per cent: |
| Sales |
160,000 |
| Cost of sales |
112,000 |
| Gross profit |
48,000 |
| Fixed expenses |
25,000 |
| Variable expenses |
10,000 |
| Profit |
13,000 |
| Units sold |
50,000 |
|
8%
23.75%
33%
30% |
Question 4: Calculate the selling price of the following product based on standard costs
Data
Materials cost per unit: £360
Labour standard cost per unit: £240
Overheads absorbed at 200% of Prime Cost
Profit margin: 25% |
2250
1200
1800
2400 |
Question 5: Calculate the value of the issues using the FIFO method |
| Date |
Receipts |
Issues |
Balance |
| |
Quantity |
Value |
Quantity |
Value |
Quantity |
Value |
| April 1 |
|
|
|
|
100 |
1,000 |
| April 10 |
500 |
8,000 |
|
|
600 |
9,000 |
| April 21 |
|
|
400 |
? |
|
|
|
6000
5800
6400
8000 |
Question 6: Calculate the value of the issues using the LIFO method |
| Date |
Receipts |
Issues |
Balance |
| |
Quantity |
Value |
Quantity |
Value |
Quantity |
Value |
| April 1 |
|
|
|
|
100 |
1,000 |
| April 10 |
500 |
8,000 |
|
|
600 |
9,000 |
| April 21 |
|
|
400 |
? |
|
|
|
6000
5800
6400
8000
Question 7: Calculate the value of the issues using the Average Cost (AVCO) method |
| Date |
Receipts |
Issues |
Balance |
| |
Quantity |
Value |
Quantity |
Value |
Quantity |
Value |
| April 1 |
|
|
|
|
100 |
1,000 |
| April 10 |
500 |
8,000 |
|
|
600 |
9,000 |
| April 21 |
|
|
400 |
? |
|
|
|
6000
5800
6400
8000 |
Question 8: Bookkeeping
The debit side of the entry to reduce a provision for bad debts will go to:
General provisions account
Bad debts provision account
Bad debts write off account
Sales ledger control account |
Question 9: Bookkeeping
The receipt entered in the cash book for the sale of an asset will be posted:
Debit disposals of assets account
Credit disposals of assets account
Debit fixed assets account
Credit fixed assets account |
Question 10:
An entry has been made on the bank statement to cancel a charge the bank made. This item will be posted as follows:
Debit bank account, credit bank charges account
Credit bank account, debit bank charges account
Debit bank account
Credit bank charges account |
Question 11:
The journal is used for the following purposes:
Entering bank transactions
Entering purchases and sales
Entering adjustments and transfers
Entering credit and debit notes |
Question 12: Depreciation - Straight Line method
Calculate the depreciation to be charged to profit and loss account in year 2 using the straight line depreciation method.
Data
Date of purchase: January Year 1
Cost: £40,000
Depreciation rate: straight line write off period 5 years
2400
4000
8000
8400 |
Question 13: Depreciation - Reducing Balance method
Using the information above, calculate the depreciation in year 2 using the reducing balance method at the rate of 30%.
2240
4000
8000
8400 |
Questions 14 and 15: Disposal of Asset
The above asset was sold on 31st December Year 3 for £17,800. Calculate the gain or loss on disposal using both methods. (Brackets represent a loss on disposal).
Data
Date of purchase: January Year 1
Date of disposal: December Year 3
Cost: £40,000. Sold for £17,800.
Depreciation rate: straight line write off period 5 years, reducing balance rate 30%. |
Question 14: Straight Line Method
1800
(1800)
(4080)
4080 |
Question 15: Reducing Balance Method
1800
(1800)
(4080)
4080
|
Questions 16 and 17: Materials Price Variance
Calculate the materials price variance from the following data:
Data
Materials standard cost per unit: 10 kg at £2.00 per kg
Actual production in units: 128
Actual materials used - kg: 1300
Actual materials cost: £2,800 |
Question 16
£ 240
£200
£40
£280 |
Question 17
Adverse
Favourable |
Questions 18 and 19: Labour Efficiency Variance
Calculate the labour efficiency variance from the following data:
Data
Labour standard cost per unit: 6 hours at £8.50 per hour
Actual production in units: 128
Actual hours worked: 750
Actual wages paid: £6,800 |
Question 18
£425
£452
£153
£135 |
Question 19
Adverse
Favourable |
Questions 20 and 21: Fixed overheads total variance
Calculate the fixed overheads total variance from the following data:
Data
Budgeted production for period: 136
Actual production: 128
Overhead recovery rate per unit: £25.625
Actual overhead cost: £3,500 |
Questions 20
£220
£15
£205
£250 |
Questions 21
Adverse
Favourable
|
|
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