Subsection 3.1. Preparation of financial statements for Accounting, A Level - revisedeck

3.1. Preparation of financial statements

A subsection of Accounting, 9706, through 3. Financial accounting (A Level)

Listing 10 of 678 questions

A company uses marginal costing. Which costs are included in its inventory valuation?

9706_s16_qp_12

MCQ

2016

Paper 1, Variant 2

View

A business manufactures three products. The following information was provided. per unit X $ Y $ Z $ selling price direct material direct labour contribution fixed overheads profit Direct labour is in short supply. All direct labour is paid at the same hourly rate. Which order of production should be used to maximise the profit?

9706_s21_qp_12

MCQ

2021

Paper 1, Variant 2

View

Which item should be treated as capital expenditure?

9706_s22_qp_13

MCQ

2022

Paper 1, Variant 3

View

Which items relating to new manufacturing equipment are capital expenditure?

9706_s23_qp_12

MCQ

2023

Paper 1, Variant 2

View

An extract from the accounts of a manufacturing company shows: $ direct factory labour 476 200 indirect factory labour 52 470 factory supervisor’s salary 18 200 opening stock of raw materials 21 500 heat, light and power 22 600 purchases of raw materials 184 300 depreciation charge for factory machinery 16 700 factory cleaning costs 18 300 closing stock of raw materials 17 900 What is the prime cost of production?

9706_w06_qp_1

MCQ

2006

Paper 1, Variant 0

View

The financial year of a manufacturer ends on 31 December. Finished goods are valued at factory cost plus 20 %. The following information is available. 1 January $ 31 December $ stock of finished goods at cost plus 20 % How much should be deducted from the stock of finished goods in the balance sheet at 31 December for unrealised profit?

9706_w09_qp_11

MCQ

2009

Paper 1, Variant 1

View

An extract from the accounts of a manufacturing company shows the following. $ depreciation of factory machinery 16 700 direct factory labour 476 200 factory cleaning costs 18 300 factory heat, light and power 22 600 factory supervisor’s salary 18 200 indirect factory labour 52 470 purchases of raw materials 184 300 stock of raw materials - opening stock 21 500 - closing stock 17 900 What is the prime cost of production?

9706_w09_qp_11

MCQ

2009

Paper 1, Variant 1

View

The financial year of a manufacturer ends on 31 December. Finished goods are valued at factory cost plus 20 %. The following information is available. 1 January $ 31 December $ stock of finished goods at cost plus 20 % How much should be deducted from the stock of finished goods in the balance sheet at 31 December for unrealised profit?

9706_w09_qp_12

MCQ

2009

Paper 1, Variant 2

View

An extract from the accounts of a manufacturing company shows the following. $ depreciation of factory machinery 16 700 direct factory labour 476 200 factory cleaning costs 18 300 factory heat, light and power 22 600 factory supervisor’s salary 18 200 indirect factory labour 52 470 purchases of raw materials 184 300 stock of raw materials - opening stock 21 500 - closing stock 17 900 What is the prime cost of production?

9706_w09_qp_12

MCQ

2009

Paper 1, Variant 2

View

For Examiner's Use Singh Ltd manufactures three products - Athol, Brose and Crowdie – selling at $3, $7 and $4 respectively. The manufacturing process is the same for all products but each requires a different quality of raw material. Expected trading results for the six months ending 31 May 2010 are as follows: Athol Brose Crowdie Total $ $ $ $ Sales 120 000 91 000 88 000 299 000 Variable costs Direct materials 48 000 52 000 27 500 127 500 Direct labour (paid at $4 per hour) 20 000 13 000 22 000 55 000 Variable overheads 40 000 39 000 11 000 90 000 108 000 104 000 60 500 272 500 Fixed costs 20 000 292 500 Estimated profit 6 500 REQUIRED Calculate the estimated number of direct labour hours needed to manufacture each product, and in total. Calculate the estimated contribution per direct labour hour for products Athol and Crowdie. For Examiner's Use Calculate the number of units of each of the three products produced per direct labour hour. Management has decided to cease production of Brose with effect from 1 June 2010. REQUIRED State why management has decided to take this action. For Examiner's Use The demand for the remaining products is expected to be: Athol 60 000 units; Crowdie 32 000 units. Management has undertaken to continue production as follows: switch the labour force from Brose to Athol and Crowdie: additional labour may also be required; the rate per hour for direct labour will be increased to $4.10 per hour; selling prices per unit of Athol and Crowdie will be unchanged; direct material costs per unit will be unchanged; the ratio of variable overheads to selling price for each product will be unchanged; fixed costs will increase by 10 %. REQUIRED Use the information above to prepare an estimated profit statement for the six months ending 30 November 2010. Follow the layout used at the beginning of the question.

9706_w09_qp_21

THEORY

2009

Paper 2, Variant 1

View

Questions Discovered

678