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BAC1200 - BUSINESS ACCOUNTING 1B - 2ND OPP - JAN 2020 |
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NAMIBIA UNIVERSITY
OF SCIENCE AND TECHNOLOGY
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION: VARIOUS PROGRAMES
QUALIFICATION CODE: VARIOUS
COURSE CODE: BAC1200
SESSION: JANUARY/FEBRUARY 2020
DURATION: 3 HOURS
LEVEL: 5
COURSE NAME: BUSINESS ACCOUNTING 1B
PAPER: THEORY AND PRACTICAL
MARKS: 100
EXAMINER(S)
MODERATOR:
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
Nkala, D., Jatamunua, R., Mushonga, E., Sheehama, K.G.H., Muleka, T., Paulus, Sh.
and Hainghumbi, H.
Odada, L.
INSTRUCTIONS
This exam paper is made up of four (4) questions
2. Answer ALL the questions and in blue or black ink
Start each question on a new page in your answer booklet and show all
your workings
4. Questions relating to this examination may be raised in the initial 30
minutes after the start of the paper. Thereafter, candidates must use
their initiative to deal with any perceived error or ambiguities and any
assumption made by the candidate should be clearly stated.
PERMISSIBLE MATERIALS
1.
2.
3.
Examination paper.
Examination script.
Calculator
THIS QUESTION PAPER CONSISTS OF 5 PAGES (including this front page)
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QUESTION 1
(10 marks)
In each of the following questions only write down the letter that, in your opinion represents the
correct answer, in the answer book provided.
1.1 Which of the following are conversion costs?
(i)
Water pipeline
(ii)
Plumber
(iii)
Factory cleaner’s wages
(iv) Security guard’s salary
a) (i) and (ii)
b) (i) and (iii)
c) (ii) and (iii)
d) (ii) and (iv)
1.2
Which of the following could not be classified as a period cost?
a) Rent
b) Insurance
c) Depreciation of plant equipment
d) Depreciation of vehicle
1.3
Which of the following could not be a direct cost?
a) Direct material
b) Direct labour
c) Prime cost
d) Conversion
1.4
A cost which stays unchanged per unit when the level of activity is changing is:
a) Fixed cost
b) Variable cost
c) Semi-variable cost
d) None of the above
1.5
A cost which changes per unit when the level of activity is changing is:
a) Variable cost
b) Fixed cost
c) Mixed cost
d) None of the above
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QUESTION 2
(35 marks)
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information:
1 July:
Textbooks on hand: 500 @ total of N$225 000.
12 July:
20 July:
Cash purchases from Van Schaik Publishers: 150 textbooks @ N$500 per textbook.
Credit purchases from Van Schaik Publishers: 50 textbooks @ total of NS27 500.
23 July: | 550 textbooks were sold @ NS800 per textbook.
25 July:
Administrative and selling expenses of N$90 000 was paid with credit card.
Additional information:
¢ The costs to place an order is NS550.
e
It takes
online.
Van
Schaik
Publishers
15
days
to
affect
delivery
from
the
date
the
order
is placed
° Annual storage cost per unit is N$75.
¢
¢
The
The
company’s annual average
company operates for 345
demand for the
days a year.
textbooks
is 49
680.
¢ The company has decided not to keep minimum inventory of textbooks because the supplier
always delivers on time.
RUQURED:
(a)
(b)
Calculate the level at which Shilongo & Shikongo Son Ltd
textbooks from Van Schaik Publishers to avoid stockouts.
needs
to
procure
additional
Calculate the size
the company.
of order
that
will
result
in minimisation
of ordering
and
holding
costs
(4)
for
(c) Determine annual ordering costs.
(5)
(d) Calculate average inventory.
(3)
(e)
Compile an inventory ledger card to determine
inventory for July 2019.
the value of the textbooks
in closing
(3)
(f) How much profit or loss was made during the month of July.
(10)
(5)
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QUESTION 3
(30 marks)
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Information for the financial year ended 31 August
manufacturer of chewable mints, is as follows:
2019
relating
to
Sweetz,
a local
Actual sales
Actual number of mints produced during the
financial year ended 31 August 2019
990 000 @ NSO.50 per mint
980 000 mints
Direct materials purchased — raw gum
Direct labour - wages
Other direct factory overheads
Budgeted fixed manufacturing overheads p.a.
Budgeted production
980 kilograms @ N$20 per kilogram
980 hours @ NS50.00 per hour
1960 machine hours @ N$10.00 per hour
NS100 000
1000 000 mints per annum
Opening inventory at 1 September 2018:
Chewable mints
Direct materials — raw gum
Work-in-progress
100 000 @ NS0.19 each
100 kilograms @ NS$20.00 per kilogram
N$11 000
Closing inventory at 31 August 2019:
Chewable mints
Direct materials — raw gum
Work-in-progress
90 000 @ NSO.19 each
90 kilograms NS20.00 per kilogram
NS3 000
Fixed manufacturing overheads are allocated on the basis of the number of mints produced.
Inventory is valued on the first-in, first-out, (FIFO) basis.
REQUIRED:
1.
Draw up a statement of cost
ended 31 August 2019.
of sales
for
Sweetz
Manufacturer
Ltd,
for
the
financial
year
(24)
2.
Prepare a statement of
ended 31 August 2019,
during the period were
profit or loss for Sweetz Manufacturer Ltd, for the
assuming the actual fixed manufacturing overhead
N$105 000.
financial year
costs incurred
(6)
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QUESTION 4
25 marks)
In July 2019 you were employed by Kavango-Shakati CC as their assistant Management accountant.
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Deductions are as follows:
¢
Non
N$1
—taxable medical fund
415.00, respectively.
contributions
for Shikongo
and
Amunjera
are
N$1
575.00
and
¢
Non
N$2
-taxable pension fund
020.00, respectively.
contributions
for
Shikongo
and
Amunjera
are
N$2
250.00
and
°
PAYE 25%
deducted)
Paid over
(total earning including allowances,
per month. PAYE is deducted by the
to the government.
but after medical and pension fund are
employer from the employees’ salaries
and
e
Taxable - social security is calculated at 0.9% of their basic
minimum contribution is NS2.70 and the maximum is NS81,
monthly
salaries.
The
monthly
NOTE: There are 12 months in a year. Round all calculations to the nearest two decimal places.
REQUIRED
1. Calculate the net salary of the two employees for the month of August 2019
END OF EXAMINATION PAPER
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