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BAC621C-BUSINESS ACCOUNTING 2B-1ST OPP-JUNE 2022 |
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1 Pages 1-10 |
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1.1 Page 1 |
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" n Am I BI A u n IVER s ITY
0 F SCIEn CE An D TECHn OLOGY
FACULTYOFCOMMERCEH, UMANSCIENCESAND EDUCATION
CENTRE FOR ENTERPRISE DEVELOPMENT (CED)
QUALIFICATION CODE: 06DBPM
COURSE CODE: BAC621C
DATE: JUNE 2022
DURATION: 3 HOURS
LEVEL: 6
COURSE NAME: BUSINESSACCOUNTING 28
MODE: PM
MARKS: 100
EXAMINER(S)
MODERATOR:
FIRST OPPORTUNITY EXAMINATION PAPER
Sheehama, K.G.H.
Odada, L.
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
PERMISSIBLE MATERIALS
1. Examination paper
2. Examination script
THIS QUESTION PAPER CONSISTS OF 11 PAGES (INCLUDING THIS FRONT PAGE)
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1.2 Page 2 |
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QUESTION 1
(40 MARKS)
Answer this question ON the Answer Sheet on Page 8 of this question paper.
In each of the following questions, ON THE ATTACHED ANSWER SHEET(PAGE 11), only draw
a cross over the letter that, in your opinion, represents the correct answer:
1.
New-Tura Ltd has a maximum capacity of 20 000 units of a certain product per year.
Other details regarding this product are as follows:
Sales (18 000 units)
N$450 000
Variable cost per unit
N$15
Fixed costs
N$105 000 per year
The number of units to be sold to earn a target net income of N$25 000 is:
A.
10 500
B.
12 500
C.
13 000
D.
13 500
2. New-Tura Ltd has a maximum capacity of 20 000 units of a certain product per year.
Other details regarding this product are as follows:
Sales (18 000 units)
N$450 000
Variable cost per unit
N$15
Fixed costs
N$105 000 per year
Break-even point in N$ is:
A.
N$262 500
B.
N$175 000
C.
N$105 000
D.
N$105 500
E.
3. New-Tura Ltd has a maximum capacity of 20 000 units of a certain product per year.
Other details regarding this product are as follows:
Sales (18 000 units)
N$450 000
Variable cost ratio
60%
Fixed costs
N$105 000 per year
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1.3 Page 3 |
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The number of units New-Tura Ltd should sell to break-even are:
A.
7 000
B.
11500
C.
9 500
D.
10 500
4. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse that sells for N$200 per
unit. Contribution margin per unit is N$40, and fixed costs total N$180 000 per year.
Variable cost ratio to sales is:
A.
100%
B.
80%
C.
20%
D.
25%
5. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse that sells for N$200 per
unit. Variable cost per is N$120 and fixed costs total N$180 000 per year. Contribution
margin ratio to sales is:
A.
40%
B.
60%
C.
50%
D.
100%
6. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse; and during the month of
May 2022 there were 4 000 units sold. The firm had generated a revenue of N$180
000, during the month of May 2022. Contribution margin ratio to sales is 40%, and
fixed costs total N$50 000 per month.
Selling price per unit is:
A.
N$50
B.
N$45
C.
N$40
D.
N$55
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1.4 Page 4 |
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7. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse; and during the month of
May 2022 there were 4 000 units sold. The firm had generated a revenue of N$180
000, during the month of May 2022. Contribution margin ratio to sales is 40%, and
fixed costs total N$S0 000 per month.
Contribution margin cost per unit is:
A.
N$15
B.
N$18
C.
N$27
D.
N$45
8. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse; and during the month of
May 2022 there were 4 000 units sold. The firm had generated a revenue of N$180
000, during the month of May 2022. Contribution margin ratio to sales is 40%, and
fixed costs total N$S0 000 per month. Variable cost per unit is:
A.
N$27
B.
N$20
C.
N$18
D.
N$45
9. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse; and during the month of
May 2022 there were 4 000 units sold. The firm had generated a revenue of N$180
000, during the month of May 2022. Contribution margin ratio to sales is 40%, and
fixed costs total N$S0 000 per month. Due to an increase in demand, the company
estimates that sales will increase by N$75 000 during the next month. By how much
should net income increase (or net loss decrease) assuming that fixed costs do not
change?
A.
N$22 000
B.
N$52 000
C.
N$30 000
D.
N$S0 000
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1.5 Page 5 |
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10. Fast-But-Sure Ltd. makes a high-quality wooden birdhouse; and during the month of
May 2022 there were 4 000 units sold. The firm had generated a revenue of N$180
000, during the month of May 2022. Contribution margin ratio to sales is 40%, and
fixed costs total N$50 000 per month.
Net profit for the month of May 2022 is.....
A. N$27 000
B. N$22 500
C. N$22 000
D. N$72 000
11. Nawa CC produces and sells only one product. The following budgeted data is
available:
Inventory levels (2022)
lMay
Raw material (kilograms)
1000
Finished products (units)
500
Sales sold 1 800 units at N$150 per unit
Production units 1 900
31 May
600
???
The units of closing inventory (finished goods) is...
A. 500
B. 800
C. 900
D. 600
12. Wana CC produces and sells only one product. The following budgeted data is
available:
Inventory levels (2022)
Raw material (kilograms)
Finished products (units)
Selling price is N$30 per unit
Production units 3 800
lJune
2 000
1000
31June
1000
1200
Budgeted sales in value (N$) is.....
A. N$114 000
B. N$108 000
C. N$180 000
D. N$124 000
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1.6 Page 6 |
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13. Wana CC produces and sells only one product. The following budgeted data is
available:
Inventory levels {2022)
Finished products (units)
Selling price is N$30 per unit
Production units 3 800
lJune
1000
31June
1200
Budgeted sales in units is.....
A. 3 800
B. 3 600
C. 3 500
D. 3 200
14. Vinia CCproduces and sells only one product. The following information is
available.
Standard cost
Direct Material
5kg per unit @ N$15 per kg
Direct Labor
4 hours per unit @ N$25 per hour
Inventory levels (2022)
1 April
30 April
Raw material (kilograms)
500
300
Finished products (units)
250
300
Budgeted sales- April 2022
900 units at N$150 per unit
Budgeted direct material in kilograms required to meet a production are ....
A. 4 800
B. 4 850
C. 4 550
D. 4 750
15. Vinia CCproduces and sells only one product. The following information is
available.
Standard cost
Direct Material
5kg per unit @ N$15 per kg
Direct Labor
4 hours per unit @ N$25 per hour
Inventory levels {2022)
1 April
30 April
Raw material (kilograms)
500
300
Finished products (units)
250
300
Budgeted sales - April 2022
900 units at N$150 per unit
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1.7 Page 7 |
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Budgeted direct labour hours required to meet a production are ....
A. 4 800
B. 3 800
C. 4 550
D. 4 750
16. Vinia CC produces and sells only one product. The following information is
available.
Standard cost
Direct Material
5kg per unit @ N$15 per kg
Direct Labor
4 hours per unit @ N$25 per hour
Inventory levels (2022)
1 April
30 April
Raw material (kilograms)
500
300
Finished products (units)
250
300
Budgeted sales - April 2022
900 units at N$150 per unit
Budgeted direct labour cost is....
A.
N$94 000
B.
N$95 500
C.
N$95 000
D.
N$94 500
17. The following data relates to the Assembly Department of Katutura Manufacturer
Limited:
Standard direct materials are 10kg at N$30 per kg; and actual direct materials are12kg
at N$25 per kg. Budgeted production units and actual production units are 600 units
and 500 units, respectively.
Direct material price variance is......
A.
N$40 500
B.
N$40 000
C.
N$30 000
D.
N$30 500
18. The following data relates to the Assembly Department of Katutura Manufacturer
Limited:
Standard direct materials are 10kg at N$30 per kg; and actual direct materials are12kg
at N$25 per kg. Budgeted production units and actual production units are 600 units
and 500 units, respectively.
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1.8 Page 8 |
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The actual direct materials (kgs) used in production process are ...
A. 7 200
B. 6 000
C. 4 550
D. 4 750
19. Vinia CCproduces and sells only one product. The following information is
available
Standard cost:
Direct Labour
4 hours per unit @ N$25 per hour
Actual direct labour production:
Direct labour cost N$550 000
Direct labour hours 20 000
Actual production units 15 000
The actual direct labour rate is .....
A.
N$45.00
B.
N$25.00
C.
N$27.50
D.
N$30.50
20. Vinia CCproduces and sells only one product. The following information is
available
Standard cost:
Direct Labour
4 hours per unit @ N$25 per hour
Actual direct labour production:
Direct labour cost N$550 000
Direct labour hours 20 000
Actual production units 15 000
The direct labour rate variance is .....
A.
N$550 000
B.
N$25 000
C.
N$50 000
D.
N$550 500
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1.9 Page 9 |
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QUESTION 2
(12 Marks)
Aribaba CC produces and sells only one product. The following information is available:
1. Raw materials required to produce one unit are 2 kg at N$11 per kg.
2. Inventory levels
Raw material (kilograms)
Finished products (units)
1 May
3 800
2150
31 May
3 000
2 500
3. Budgeted sales - May 2022: 9 000 units at N$40 per unit
REQUIRED:
Prepare the following for the month of May 2015
(a) Sales budget in N$
(3)
(b)
Production budget (units and N$)
(3)
(c)
Raw material purchases budget (kilograms and N$)
(6)
QUESTION 3
(18 Marks)
FOURby FOURLtd has made available the following information concerning its costs at two
activity levels:
Level of activity
Cost item
At 8 000 kg
12 000 kg
Direct material
Direct labour
Electricity & water
Licence fee
Total costs
240 000
40 000
90 000
10 000
380 000
360 000
60 000
130000
10 000
560 000
REQUIRED:
Prepare a flexible budget at 11 000 level of activity. Show the relevant workings.
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1.10 Page 10 |
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QUESTION 4
(30 Marks)
Natu Ltd manufactures a product called "E-Roll". Information for the past year was as
follows:
Fixed costs
Sales {18 000 units)
Variable cost ratio
N$150 000
N$450 000
40%
Requirement:
1. Variable cost per unit
(2)
2. Contribution margin per unit (2)
3. Contribution margin ratio
(2)
4. Total contribution margin
(2)
5. Break-even-point in units.
(3)
6. Break-even-point in value (N$) (3)
7. Margin of safety in units
(3)
8. Margin of safety ratio
(3)
9. The company is presently planning to reduce the current selling price of its product
by 10%. A market survey indicates that volume will increase by 20% at this new
price, but that the higher volume of production will cause fixed costs to increase by
N$5 000 per year. Should the company proceed with the change? Give reasons for
your answer. Show all necessary calculations.
(10)
The End!
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2 Pages 11-20 |
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2.1 Page 11 |
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I BUSINESS ACCOUNTING 2 B (BAC521C)
I I QUESTION I: ANSWER SHEET STUDENT NUMBER:
JUNE 2022
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