Qualification > Commerce

all acc doubts here !!

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immortal:

--- Quote from: ***exam*** on May 14, 2010, 09:40:23 pm ---http://www.srepapmaxeeeerf.org/A%20Level/Accounting/CIE/2008%20Nov/9706_w08_qp_2.pdf

this paper  Q3 c) u need production variable cost to solve  how do u get  it ??



Thanks Mony

--- End quote ---

da variable cost includes direct material & labour cost.It shud b calculated on da current years production.
Dat is Sales+Cl stock-Op stock
den da constant fixed cost is added
As this is absorption costing da unit price wen calculating Op/Cl stock will include fixed cost.

==Der is a another method 2 calculate & solve this using over/under absorption,which haz different format.

pastyear:
ya immortal. you are right. Look at d format i gave

pastyear:
Questions . It was hard pls help. :'( :'(

Q1)The standard material specification for a unit of production is 2 kg costing $7.50 per kilo.
     Budgeted production for a period was 600 units, actual production was 620 units. The actual
     material cost of purchasing 1200 kilos was $9400.
     What was the material price variance?
Ans:   $100 adverse

my working:
(sp-ap) *aq
(7.5 - 9400/1200) *1200
$400 (A)   ?

Q2)Discounting methods have been used to evaluate an investment project over a three year life.
     The project will produce annual net inflows of $2 m.
     $500 000 of the initial investment can be recovered at the end of the third year.
     Discount factors at 10 % are:
                year             factor
                1                    0.91
                2                    0.83
                3                    0.75
     What is the present value of project cash inflows?
Ans:    $5.36 m


my working:

year      10%       NCF              PV
0          1           (500k)           (500k)
1          0.91        200k             1820k
2          0.83         200k             1660k
3          0.75         200k              1500k


Q3)A company has the following capital structure:
     50 000 ordinary $10 shares 500 000
     1 000 000 5 % convertible loan stock 1 000 000
    One half of the loan stock holders converted at the rate of three new ordinary shares of $10 each
    per $100 of loan stock.
    How many new ordinary shares were issued?
Ans:   $15 000

complete dont understand loan change to ordinary share or vise versa.

immortal:

--- Quote from: pastyear on May 15, 2010, 06:17:23 pm ---Questions . It was hard pls help. :'( :'(

Q1) cost of material as per flex budget =7.5*2*620=9300
       material price variance=flex-actual
                                     =9300-9400=$100(A)

Q2)inflow for investment=(0.91+0.83+0.75)*2000000
                                 =4980000 (same as ur ans)
     investment recovered =500000*0.75=375000
       present value=4980000+375000=5.355m

3)half of stock =$500000
   As 4 each $100 v get 3 shares, so  500000/100*3=15000 shares


--- End quote ---

***exam***:

--- Quote ---da variable cost includes direct material & labour cost.It shud b calculated on da current years production.
Dat is Sales+Cl stock-Op stock
den da constant fixed cost is added
As this is absorption costing da unit price wen calculating Op/Cl stock will include fixed cost.

==Der is a another method 2 calculate & solve this using over/under absorption,which haz different format.
--- End quote ---

oh ya Thanks :)

is it like

profit per mc + o/h in closingstock - o/h in opening stock  ??

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