ACC116 NOVEMBER2018 PAST YEAR QUESTION PDF

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© Hak Cipta Universiti Teknologi MARA CONFIDENTIALUNIVERSITI TEKNOLOGI MARACOMMON TESTCOURSE : INTRODUCTION TO COST ACCOUNTINGCOURSE CODE : ACCEXAMINATION : NOVEMBER 2018TIME : 1 ½ HOURSINSTRUCTIONS TO CANDIDATES This question paper consists of TWO (2) questions. Answer ALL questions in the Answer B...

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AC/NOV2018/ACC116

UNIVERSITI TEKNOLOGI MARA COMMON TEST

COURSE

:

INTRODUCTION TO COST ACCOUNTING

COURSE CODE

:

ACC116

EXAMINATION

:

NOVEMBER 2018

TIME

:

1 ½ HOURS

INSTRUCTIONS TO CANDIDATES 1.

This question paper consists of TWO (2) questions.

2.

Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the invigilator.

4.

Please check to make sure that this examination pack consists of: i)

the Question Paper

ii)

an Answer Booklet – provided by the Faculty

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AC/NOV2018/ACC116

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 5 printed pages

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AC/NOV 2018/ACC116

QUESTION 1 A.

Lip Lop Trading produces 10,000 units of RUSH product annually. The company requires 6 units of component A to produce 1 unit of RUSH. Each Component A costs RM64 per unit. The holding cost of component A is 10% of its purchase price while the cost of placing an order is RM11.70. Required: i

Estimate the total cost for the number of orders at 60, 50 and 40 times per annum using tabulation method. (5 marks)

ii.

Based on your answer in (i), identify the economic order quantity (EOQ) of component A. (1 mark)

iii.

Give any TWO (2) examples of ordering cost. (2 marks)

B.

ABC Sdn Bhd is a large retailer which maintains a central warehouse to supply industrial tools to several shops in Batang Padang Area. The following information is available for one of the tools, namely Part Number MS48, in the warehouse. Minimum usage Maximum usage Lead time for replenishment Re-order quantity

160 units per day 500 units per day 10— 14 days 7,300 units

Required: Based on the above data, calculate: i

The re-order level of stock (1 mark)

ii.

The maximum level of stock (2 marks)

iii.

The minimum level of stock (2 marks)

C

Sahabat Grocer Sdn Bhd produces frozen puff pastry sheet for local markets. One of the ingredients used is special flour, which is imported from India. Their record discloses that 2,500 kilograms of the flour were in store at the beginning of the current period in May 2018, which comprises of 1,200 kilograms priced at RM5 purchased in April 2018 and the balance, priced at RM4.80 purchased in March 2018.

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AC/NOV 2018/ACC116

The following transactions took place in May 2018. Issue to production department: Date 4 May 2018 11 May 2018 16 May 20 May 2018

Kilograms 1 ,800 1,000 1,500 800

Purchase of the flour: Date

Kilograms

8 May 2018 13 May 2018 18 May

900 1,200 2,500

Price per kilogram (RM) 5.50 5.70 5.90

On 25 May 2018, 300 kilograms of flour were returned to supplier which was purchased on 18 May 2018. Physical stock count on 31 May 2018 revealed a balance of 1,650 kilograms of flour.

Required: i.

Prepare a Store Ledger Card to record the above transaction in May 2018, using the first--In-First-Out Method (10 marks)

ii.

Compute the net total costs of material issued to production department (2 marks)

iii.

Give any THREE (3) purposes of efficient stock control system (3 marks) (Total: 28 marks)

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AC/NOV 2018/ACC116

QUESTION 2 Scooby Manufacturing has four (4) workers, where two are skilled workers, one semi-skilled worker and one unskilled worker. The normal working hours are 40 hours per week. Skilled workers are paid based on hourly rate whilst semi-skilled is paid based on straight piece rate with guaranteed minimum wage of RM750 per week. The unskilled worker is paid based on differential scheme. Skilled workers are entitled for overtime which is paid at a premium of 50% on hourly rate. Given below are the data for the second week of March 2018:

Name Lady Gaga Beyonce Justin Bieber Selena Gomez

Category Skilled Semi-skilled Skilled Unskilled

Rate per hour (RM)

Rate per Unit (RM)

15.50 14.50 16.00 14.00

5.00 4.50 8.00 6.50

Hours worked 48 hours 38 hours 40 hours 50 hours

Output (Units) 260 150 250 230

The differential scheme is as follows:

Units produced per week up to 50

Rate per Unit RM5.00

51 - 100 101 -200 201 -300

RM5.20 RM5.50 RM6.00

301 and above

RM6.10

The units produced by each worker are inclusive of defective unit of as follows:

Name Lady Gaga Beyonce Justin Bieber Selena Gomez

Defective units 5 2 8 7

However, the respective workers are also entitled to earn from the defective units at RM1.80 each. Required:

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AC/NOV 2018/ACC116

a)

Calculate the gross wages earned by each worker for the second week of March 2018. Show all the calculations. (14 marks)

b)

Calculate the total labour cost of Scooby Manufacturing for the second week of Mac 2018. (2 marks)

c)

Scooby Manufacturing is planning to change the remuneration plan for unskilled worker to time based. i.

Calculate the gross wages of the unskilled worker based on the present timebased scheme. (3 marks)

ii.

State whether the new plan gives benefit to the unskilled worker. (3 marks) (Total: 22 marks)

END OF QUESTION PAPER

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