9706_w12_qp_23
A paper of Accounting, 9706
Questions:
3
Year:
2012
Paper:
2
Variant:
3
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1
On 31 March 2012 the following balances were extracted from the books of YCAT. $ Inventory – 1 April 2011 Raw materials 53 000 Work in progress 80 000 Finished goods 76 000 Raw materials purchased 800 000 Revenue 2 500 000 Direct wages 450 000 Carriage inwards on raw materials 6 000 Indirect wages 68 000 Returns outwards on raw materials 18 500 Trade receivables 83 000 Revenue returns 22 000 Rates and insurance 38 000 General factory overheads 93 000 Loan interest paid 5 000 Office salaries 80 000 General office expenses 100 000 Premises 600 000 Factory machinery at cost 220 000 Provision for depreciation of factory machinery 40 000 10% Long term loan 100 000 Provision for doubtful debts 3 800 . Additional information $ Inventory – 31 March 2012 Raw materials 47 000 Work in progress 92 000 Finished goods 68 000 The provision for doubtful debts is to be 5% of trade receivables. At 31 March 2012 rates and insurance owing amounted to $950. Rates and insurance are apportioned between the factory and general office in the ratio of 4:1 respectively. Depreciation is to be provided on premises at 5% per annum straight line. This is apportioned between the factory and general office in the ratio of 4:1 respectively. Depreciation on factory machinery is to be provided at 15% using the reducing balance method. For Examiner's Use REQUIRED Prepare the manufacturing account for the year ended 31 March 2012. For Examiner's Use Prepare the income statement for the year ended 31 March 2012. For Examiner's Use Define the prudence concept. State three examples of how this has been applied in the financial statements.
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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2
For Examiner's Use Maurice and Ravel had been in partnership for a number of years, sharing profits and losses equally. On 1 July 2011, they decided to admit Bach as a partner. Bach paid $39 000 capital into the partnership and also provided a motor van, valued at $8000, for partnership use. A new partnership agreement was drawn up, effective from 1 July 2011 which stated: Profits and losses will be shared by Maurice, Ravel, and Bach in the ratio 2:2:1. Interest on capital is payable at 10% per annum. Interest on drawings is charged at 5% on annual drawings. Ravel would receive an annual salary of $10 000 per annum. Goodwill in the business was valued at $40 000 and the partners agreed that this would not remain in the books. Capital accounts before goodwill – 1 July 2011 Maurice $120 000 Ravel $ 80 000 REQUIRED Prepare the capital accounts for all three partners at 1 July 2011. For Examiner's Use The following additional information relates to the year ended 30 June 2012 $ Revenue 2 600 000 Revenue returns 200 000 Purchases 1 625 000 Inventory: 1 July 2011 120 000 Inventory: 30 June 2012 145 000 General expenses 480 000 Current accounts – 1 July 2011 Maurice 17 000 Cr Ravel 12 000 Dr Drawings Maurice 96 000 Ravel 120 000 Bach 35 000 REQUIRED Prepare the income statement for the year ended 30 June 2012 For Examiner's Use Prepare the appropriation account for the year ended 30 June 2012. For Examiner's Use Prepare the current accounts for all three partners at 30 June 2012. For Examiner's Use The partners are now considering changing their business from a partnership to a limited company. Explain to the partners the meaning of the term ‘limited liability’.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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3
For Examiner's Use ABG Ltd manufactures three products, Alpha, Beta and Gamma, all of which are made from one basic raw material. Forecast costs and selling prices are as follows. Product Alpha Beta Gamma Sales per month 9 000 12 000 7 000 $ $ $ Selling price per unit Variable costs per unit: Direct material Direct labour Variable overheads The total fixed costs are $250 000 each month. REQUIRED Calculate the contribution per unit for each product. For Examiner's Use Calculate the total monthly profit which can be achieved. Due to a material shortage, ABG Ltd will only receive 80% of its material requirement for the month of April 2013. No other shortages are expected. REQUIRED Using the quantity of material that is available, prepare a statement to show the maximum profit that could be achieved for the three months ended 30 April 2013. For Examiner's Use ABG Ltd has received an enquiry for an additional order of 3000 units of Gamma at a special price of $50 per unit. Additional fixed costs of $15 000 would be incurred. Assuming no material shortage, calculate the profit or loss on this order. Identify three factors which ABG Ltd should consider when deciding whether to accept this additional order for Gamma.
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
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