9706_s11_qp_22
A paper of Accounting, 9706
Questions:
3
Year:
2011
Paper:
2
Variant:
2
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1
For Examiner’s Use Marcel owns a wholesale business supplying shops, hotels and restaurants with tea and coffee. He does not keep formal accounting records but is able to supply the following information for the year ended 30 April 2011. 30 April 2011 1 May 2010 $ $ Trade receivables 17 000 18 200 Trade payables 14 800 16 600 Inventories 20 600 33 000 Wages accrued 9 350 9 200 General expenses prepaid – General expenses owing – Transactions during the year ended 30 April 2011 were as follows: $ Cash received from credit customers 103 160 Cash paid to credit suppliers 88 400 Cash sales to staff 10 750 Sales returns from credit customers 9 200 Discounts allowed 9 540 Discounts received 9 000 Bad debts 8 200 Wages 13 650 General expenses 12 300 REQUIRED Prepare a purchases ledger control account to find out the total amount of credit purchases for the year ended 30 April 2011. For Examiner’s Use Prepare a sales ledger control account to find out the amount of credit sales for the year ended 30 April 2011. Additional information: The normal gross profit to sales margin is 33.33%. Staff are permitted to buy goods at cost plus 25%. Goods sold in the annual clearance sale, $29 700, were sold at cost price. On 8 March 2011 an unknown quantity of goods was destroyed by fire. For Examiner’s Use REQUIRED There were no further losses of goods during the year. Starting with the opening inventory, calculate the value of the goods destroyed by the fire on 8 March 2011. For Examiner’s Use Prepare the income statement (trading account only) for the year ended 30 April 2011.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
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2
For Examiner’s Use The following information is available for the Northern Division of Blackford Industrial Ltd: Statement of financial position at 30 April 2011 $000 $000 $000 Non-current assets at net book value Current assets Inventory Trade receivables Bank Current liabilities Trade payables Other payables Net current assets Capital employed Equity Ordinary share capital – $1 each Share premium Retained earnings Total shareholders’ funds Additional information for year ended 30 April 2011 $000 Total revenue 480 Cash purchases Cash paid to credit suppliers Operating expenses At 30 April 2010, the following balances were reported: $000 Inventory Trade payables REQUIRED Calculate the following amounts for the year ended 30 April 2011: cost of sales For Examiner’s Use gross profit and profit for the year (net profit). An analysis of the Southern Division of Blackford Industrial Ltd for the year ended 30 April 2011 yielded the following results. Southern Division Mark-up 40% Gross profit percentage 28.57% Expenses to sales 20% Net profit percentage 8.57% Return on capital employed 18.00% Rate of inventory turnover 8.95 times Liquid ratio (acid test) 1.1:1 REQUIRED Northern Division Calculate each of the same ratios for the Northern Division of Blackford Industrial Ltd, for the year ended 30 April 2011. The calculations should be correct to two decimal places. Mark-up Gross profit percentage For Examiner’s Use Expenses to sales Net profit percentage Return on capital employed Rate of inventory turnover Liquid ratio (acid test) For Examiner’s Use Using the profitability ratios – compare the performance of the Northern and Southern Divisions of Blackford Industries and explain the significance of each ratio.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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3
For Examiner’s Use Ventana Ltd produce three different types of slatted wooden blinds, Pine, Teak and Oak. The company’s forecast figures for the year ended 30 April 2012 were: Pine Teak Oak $ $ $ Selling price (per unit) Costs (per unit) Direct material Direct labour Variable overhead Fixed overhead is absorbed on the basis of 50% of direct material cost. Annual production and sales are forecast to be: Pine 2000 units Teak 1600 units Oak 1000 units REQUIRED For the year ended 30 April 2012: Prepare a statement to show the contribution per unit for each product. Calculate the total forecast fixed cost for the year. For Examiner’s Use Prepare a statement to show the break-even point for each type of blind in units and dollars. Prepare a statement, using the contribution per unit, to show the total profit or loss made by each type of blind for the year. For Examiner’s Use One of the directors wishes to stop production of the pine blinds. This would increase the total forecast fixed costs by 25%. However, the director estimates that sales of the teak and the oak blinds would increase by 50%. REQUIRED Prepare a detailed marginal cost statement, using the contribution per unit, to show the effect on total profit of stopping production of the pine blinds.
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
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