Saturday, October 16, 2021

ASSIGNMENTS ON COST ACCOUNTING 2 (ACC 222) FOR PART TIME STUDENTS

1.  BATCH COSTING ASSIGNMENT:

       Batch No.247 incurred the following costs:

      Dept. A             420 labour hours at N3.50

      Dept. B              686 labour hours at N3.00

      Factory overheads are absorbed on labour hours and the rates are N8 per

      hour for Dept. A and N5 per hour for Dept.B.

      The firm uses a cost plus system for setting prices and expected a 15% gross

      profit (sales minus total cost). Administration overheads are absorbed at

     20% selling price. Assuming that 1,000 units were produced in Batch 247.

      Calculate:

(a)      The selling price per unit

(b)      The total amount of administrative overheads

(c)      The profit per unit

 

 

2.  PROCESS COSTING ASSIGNMENT:

     A product passes through two processes (X, Y) to completion. The following information

     were obtained from the company`s record.

 

                                                                                Process X                Process Y

                                                                                    N                             N

     Material                                                              125,000                   175,000

     Labour                                                                100,000                    87,500

     Overhead                                                            187,500                   125,000

     The input of material in Process A is 12,500kg while the outputs of the two processes are

     7,500kg and 5,000kg respectively. The scrap value of normal loss is N2 per unit. Normal

     loss is 10% of input.

     Prepared: Prepare

(i)                   Process X and Process Y Account

(ii)                 Abnormal Loss/ Abnormal Gain Account

 

3.   FLEXIBLE BUDGET ASSIGNMENT:

    Bamidupe Moyege Nigeria Limited is operating a flexible budget control its budget for the year is as follows:

                                                                                                                Level of Activities

                                                                                70%                         80%                         90%                         100%

                                                                                700units                800units                 900units            1,000units

     Prime Cost (N)                                                    14,000                    16,000                     18,000                     20,000

     Variable Cost (N)                                                 2,100                      2,400                       2,700                       3,000

                                                                                16,100                     18,400                     20,700                     23,000

     Semi-Variable Cost                                            3,400                         3,600                      3,800                       4,000

     Fixed Cost                                                           5,000                        5,000                       5,000                       5,000

                                                                                24,500                     27,000                     29,500                     32,500

     Required:

     Separate the Semi-Variable Cost and prepare operational statement to management.

     Also include cost of attaining 120% level of activity.

 

4.   JOINT COSTING ASSIGNMENT:

    (a) Explain the following terms in the context of joint and By-Product Costing:

     i. Joint Costs      ii. Joint Products     iii. By-Product             iv. Net Realisable Value

   (b)  Banuso Nigeria Limited furnishes you with the following data:

            Product                      Units                     Selling Price                           Sales Value

                                                (kg)                               N                                             N

                X                             100                          1,850                                      185,000

                Y                             150                          1,700                                      255,000

                                                250                                                                          440,000

            The joint cost is N500,000.

             Required:

             Apportion the joint cost between the two main products on the basis of:

(i)                   Physical Output Basis

(ii)                 Sales Value Basis

 

 

5.  CASH BUDGET ASSIGNMENT:

  (a)  LCP Water Limited has a cash balance of N200,000 at the beginning of January 2021.

            The sales and purchases for the first 5 months are given below:

            Month                                        Sales                    Purchases

                                                                  N                            N

           Jan.                                              200,000                 50,000

           Feb.                                             300,000                 80,000

           Mar.                                            450,000                 120,000

           Apr.                                             600,000                 170,000

           May                                            750,000                 200,000

(b) 70% of sales are realised in the month following sales and the remainder in the following 2 months.

(c) Creditors are settled one month in arrears.

(d) Overhead expenses of N40,000 is incurred on monthly basis.

(e)  The company plans to purchase a new generator costing N70,000 in April 2021

(f)  Wages of N50, 000 are incurred on monthly basis.

Required:

Prepare cash budget for January to April 2021.

 

Instruction:To be submitted 10a.m prompt on or before Saturday  October 23, 2021.  

 

                                      ✍️🕋🇳🇬 Patriot Odunaro Babatunde Jimoh💙💚🖤💜

No comments:

Post a Comment