ACC116 - TEST - sample of test acc 116 PDF

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MARCH – JULY 2021/ TEST ACC1 16UNIVERSITI TEKNOLOGI MARA (UiTM)JUNE 2021(TIME: 1 ½ hours) ANSWER ALL QUESTIONSQUESTION 1A) Great Juices Sdn Bhd is involved in producing detox juices since 2010. The main ingredient for the detox juices is Australian imported lemon. 500 grams of lemon is needed for ev...

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MARCH – JULY 2021/ TEST ACC116

UNIVERSITI TEKNOLOGI MARA (UiTM)

JUNE 2021 (TIME: 1 ½ hours) ANSWER ALL QUESTIONS QUESTION 1 A)

Great Juices Sdn Bhd is involved in producing detox juices since 2010. The main ingredient for the detox juices is Australian imported lemon. 500 grams of lemon is needed for every bottle of the detox juice. The company adopts the First-In-First-Out (FIFO) stock valuation method. The following transactions relating to lemon took place in the month of April 2021. April 1

3 8 12 16 20 22 25 27 30

Transaction Balance at the beginning of the month was 1,800 kilograms, which consist of 1,000 kilograms priced at RM5.00 per kilogram purchased on 15 March and the balance priced at RM4.50 per kilogram purchased on 25 March. Purchased 2,000 kilograms valued at RM8,400 Issued to produce 3,600 bottles of detox juice Purchased 3,000 kilograms at RM RM4.10 per kilogram after trade discount of 10%. Returned to supplier 200 kilograms from purchase made on 12 April Issued 3,000 kilograms of lemon to production department Purchased 1,000 kilograms of lemon valued at RM4,300 Issued to produce 3,400 bottles of detox juice 100 kilograms were returned by production department at latest price due to unexpected low demand Stock count showed only 1,180 kilograms of lemon remained in the store.

Required: Prepare a store ledger card for Great Juice Sdn Bhd using its current stock valuation method and show the value of closing inventories as at 30 April 2021. (12 marks) B) Fara Design Sdn Bhd manufactures 12,500 units of stool chair every year. Each unit requires 2 meters of plywood. The company purchases the plywood from local supplier at RM30 per meter and it takes 2 to 4 weeks for the supplier to deliver to the company when ordered. The cost of preparing the purchase order and other administration charges is RM50.00 per order. The carrying cost is estimated at 5% of the purchase price. In addition, the company also incurs insurance cost at RM1 per unit. Currently, the company produces 200 to 250 units of stool chair every week. Required: a.

Calculate the followings inventory control level for plywood: i. Economic Order Quantity using formula method.

MARCH – JULY 2021/ TEST ACC116

ii. iii. iv.

Reorder level Maximum inventory level Minimum inventory level (9 marks)

b.

State two (2) activities each that occurs in purchasing department and store. (4 marks) (Total: 25 marks)

QUESTION 2 Décor Sdn Bhd employs three workers working in assembly department namely, Muaz, Mimi and Malik. Muaz and Mimi are semi-skilled workers, whereas Malik is a skilled worker. The semi-skilled workers are paid based on hour worked while skilled workers based on output produced with guaranteed minimum of RM2,000 per month. Below is the information for the four weeks of April 2021: Employee Hours worked Output Rejected

Muaz 165 hours 6,720 units 2 units

Mimi 159 hours 6,440 units 1 unit

Malik 160 hours 8,500 units 2 units

Additional information: 1.

Normal working hour is 40 hours per week, and it is assumed four (4) weeks in a month.

2.

The rate per hour is standardised at RM10 per hour. Overtime is paid at premium of 40% of basic rate.

3.

The piecework rate is at RM0.20 per unit produced for the first 5,000 units and remaining at RM0.30 per unit produced.

4.

Muaz is required to work overtime to complete an urgent order from a regular customer.

Required: a.

Calculate the followings for each worker for the month of April 2021: i. ii. iii.

Basic wages Overtime (if any) Gross wages (13 marks)

b.

Classify the gross wages (state the amount) for Muaz into direct and indirect wages. (2 marks) (Total: 15 Marks) (TOTAL : 40 MARKS)...