pyq acc 116

CONF1DENTIAL AC/SEP 20141ACC11611651211

UNIVERSITI TEKNOLOGI MARAFINAL EXAMINATION

COURSE

COURSE CODEEXAMINATIONTIME

: INTRODUCTION TO COST ACCOUNTING l COSTACCOUNTING

: ACCII61165/211: SEPTEMBER 2014: 3HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of five (5) questions.2. Answer ALL questions in the Answer Bookiet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by theinvig ilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paperii) an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO 50This examThation paper consists of 7 printed pages

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 2 AC/SEP 20141ACCII6/165/211

QUESTION 1

a. State any three (3) roles and responsibilities of a cost accountant or a managementaccountant towards the company.

(3 marks)b. ldentify the following costs based on their functions

Administration cost Production cost Marketing, Selling and Distribution cost Finance cost Research and Development cost

i. Advertising costs to promote a new productii. Depreciation of machines in Assembly Centreiii. Consultancy costs paid to a company conducting a survey on a new productiv. Muna Boutique purchased 3,000 meters of fabric for new clothing lineV. lnterest on loan borrowed by Sani for setting up his business

(5 marks)(Total: 8 marks)

QUESTION 2

a. i. State the differences between direct material and indirect material.(2 marks)

ii. Provide an example of a direct material and indirect material.(1 mark)

iii. List the functions and essential information contained in the following documents

1. Store requisition notes2. Goods received notes

(4 marks)


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b. Fkri Enterprise purchases and sells a single product caiied Kristy. The companymaintains a perpetual inventory system. The company values its stock based on theLast-in-First-out (LIFO) method.Opening stock for January 2014 of Kristy was 800 units at a total cost of RM2,000.The transactions during the month are as follows:

Purchases lssuesDate Units Total Value Units

(RM)3January 11500 47500 -6 January 27000 674009 January - - 2780012January 3,000 107500 -15 January*20 January - - 2750028January - - 11200

Additional information:

a. Fikri Enterprise returned 300 units of Kristy to the store due to excess taken.These units were purchased on 6 January.

b. During a physical stock count at the end of January, there were 1,000 units ofKristy in store.

Required:

i. Prepare a Store Ledger Card for January 2014 using the Last-in-First-out (LIFO)method of pricing issues of raw material and show the value of closing stock.

(14 marks)ii. State two (2) advantages and two (2) disadvantages of LIFO method in valuing

the stocks.(4 marks)

iii. State three (3) possible reasons for any discrepancy to occur between thebalance as per store ledger card and the physical stock count.



CONFIDENTIAL 4 AC/SEP 2014/ACCII6/165/211

QUESTION 3

a. Muhammad commenced his business, Mafh Bakery in January 2014. MuhammadempIoys Pn. Anis, a very experienced baker and Cik Izzah, who was a cupcake sellerfor the last 3 years. Both of them are responsible to produce cakes and cupcakeswhich are ordered by Mafh Bakerys customers.

Since the demand has increased, Muhammad hires Encik Amzar Jalil as a driver forhis bakery. At the same time, Cik Athirah has been appointed as an accountant inMafh Bakery. The business operates daily from 8.00 am to 7.00 pm, and is beingmonitored consistently by his son, Farid who works as a cashier. The company alsohires Hafie as a security guard.

Required:

ldentify direct Iabours and indirect labours amongst the workers mentioned above.Give reasons for each of your answer.

(6 marks)b. Due to financial insolvency Muhammad has sold his business to Mohd Rafiq. Rafiq,

then restructured the business and hire another four workers, Amin, Hana, Ashikin andShatirah. Amin and Hana are paid on hourly worked, while Ashikin and Shatirah arepaid on the number of units produced.

Payment to Ashikin and Shatirah are based on straight piecework and differentialpiecework respectively. They will be paid on good units only and are promised amonthly guaranteed minimum wages of RMI ,200.

The workers normally work seven (7) hours a day, Monday to Friday a week. Overtimerate will be at 150% of the rate. The following information relates to the four workersfor the month of January 2014.

Unit Hours Rate per Rate per Defectedproduced Worked Hour(RM) Unit(RM) units

Amin - 50 20 - -Hana - 40 30 - -Ashikin 50 44 20 30 2Shatirah 60 45 30 20 O

The differential piecework wages will be as follows:

Up to 20 units RM1O per unit21 - 40 units RMI2 per unit41 - 50 units RM15 per unit51 units and above RM20 per unit


CONFIDENTIAL 5 AC/SEP 2014/ACCII6/1651211

Required:

i. Calculate the gross wages for the four workers of Mafh Bakery.(13 marks)

11.

State one (1) advantage and tWo (2) disadvantages of differential pieceworkscheme of remuneration.


QUESTION 4

Namia Manufacturing Sdn Bhd is preparing its budgeted production overhead and managedto determine the apportionment cost of those overhead to products. There are five centresconsists of 3 production centres and 2 service centres.

For the year 2013, cost centre expenses and related information have been budgeted asfollows:

Cost centre Basis of ApportionmentCanteen Number of empioyeesMaintenance Maintenance hours

Total Machine Machine Assembly Canteen MaintenanceCentre Centre Centre Centre Centre

1 2

RM RM RM RM RM RMlndirect labour 78,560 ? 97980 131684 223638 181400lndirect 167300 81480 ? 21300 0 0materialslndirect 121600 87420 0 ? 0 27101ExpensesApportionment 81 1 571 32 7 410 221220 141850 87841 3,250Cost

Additional information:

Total Machine Machine Assembly Canteen MaintenanceCentre Centre Centre Centre Centre

1 2Maintenance 100 40 30 20 10 0hoursDirect labour 35 7 000 8 7 000 67200 207800 0 0hoursMachine 25,700 7 7 200 18,000 21400 0 500usage hoursNumberof 17630 450 400 380 0 400employees

Hak cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 6 AC/SEP 2014/ACCI 1 6/165/21 1

Required:

a. Calculate the missing value for the indirect labour, indirect materials and indirectexpenses.

(3 marks)b. ldentify a suitable basis of apportionment for the overhead costs listed below:

i. lnsurance on buildingii. Depreciation on machineryiii. Electricity expensesiv. lnspection expensesV. Rent and rates of buildingvi. Utilities expenses

(3 marks)C. Prepare an overhead analysis sheet for Namia Manufacturing Sdn Bhd using the

repeated distribution method (your answer to the nearest Ringgit). Based on your finalamount of the total overhead after re-apportionment, calculate the overheadabsorption rate (OAR) for each of the three productions centre below using thefollowing basis:

i. Machine Centre 1 - Machine Usage Hoursii. Machine Centre 2 - Machine Usage Hoursiii. Assembly Centre - Direct Labour Hours

(14 marks)d. Calculate any under or over absorption of overheads if the actual activity for the year

2013 are as follows:

Machine Centre Machine Centre Assembly Centre

1 2Actual overhead RM607304 RM467983 RM671608Direct labour hours 77400 77210 267340

Machine usage hour 57400 161880 37100

(5 marks)e. State three (3) problems that might arise when apportioning service department costs

to production departments.(3 marks)

(Total: 28 marks)

Hak Cipta Universiti Teknoiogi MARA CONFIDENTIAL

CONFIDENTIAL 7 AC/SEP 201 4/ACCI 1 6/1 65/21 1

QUESTION 5

MZ Sdn Bhd is a wooden chair producer. During the month of May 2014, a special order(Batch No. 50888) of 10 wooden chairs were received from Pahang. The material such aswoods, nails and varnish are required in making these chairs. The following information isavaiiable for Batch No. SC888:

RMWoods RM11500Nails RM300Wages/Salaries:Chair maker (Completed job within 10 days)

RM50 per daySupervisor RM800Designer fees RM1 ,000Salesman commission RM200Driver for delivery RM50Varnish RM250

Required:

i. Prepare a job cost sheet for Batch No. SC888. Show clearly:a. prime cost

(4 marks)b. total production cost

(3 marks)C. total cost and

(2 marks)d. selling price

(3 marks)The management target profit margin is 30% on sales.

ii. Describe two (2) characteristics ofjob costing.(2 marks)

(Total: 14 marks)

END OF QUESTION PAPER

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