TEST CODE

O22OIO32
2OO9

FORM TP 2009134

MAY/JI-INE

CARIBBEAN EXAMINATIONS COUNCIL ADVANCED PROFIC IENCY EXAMI{ATIOI{

ACCOUNTING

UNIT2 _

PAPERO3/2
nours

tj

05 JUNE 2009 (a.m.)

t.
2.
a J.

This paper comprises NINE questions. AnswerALL questions. Begin EACH answer on a separate page. Silent non-programmable calculators may be used, but ALL necessary working should clearlv shown.

I I I I I I

Copyright @ 2009 Caribbean Examinations Council All rights reserved. 02201032/CAPE|2009

-21.

omanagement accounting' in relation to EACH Distinguishbetween 'financial accounting' and the following:

of

(a) (b) (c) (d)

,,

Users of the information

Scope of the reports

Period covered by the information FrequencYofrePorting

[ 4 marks

the following manufacturing costs The accounting records of Allied Cleaning Company include and inventories for 2008.

Manufacturing costs:
Direct materials used Direct labour costs charged to production Manufacturing overhead aPPlied

Finished goods
2008

for the year ended December Prepare a Schedule of Cost ofFinished Goods Manufactured

[ 6 marksl

'

'

3.

metal windows' He is paid Peter Caraspy is employed by Arouca Company which manufactures all work in excess of 40 hours per week' $25 per hour for regular tim, and time and a half for
For the past week Peter was idle Assume that during a given week Peter works a total of 5 0 hours. for the past week between direct for 5 hours due to a machine breakdown. Allocate Peter's wages [ 4 marks] cost and indirect labour

labour

cost'

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022010321c1tP812009

-3Questions 4 and 5 refer to the following job cost sheet of Edwards Company.

Job Cost Sheet

Job Number

49

Quantity
Date Requested Date Completed

200 Julv 02.2008 July 31,2008

Item For

Bird cages
Talparo Company

Date Juty 2008

10

Direct materials
$

Manufacturing Direct labour

$

overhead
S

825 900 440 380 600 500 540 702 572 494

t2
15

22

24
27

3l
Cost of completed job:

Direct materials

Direct labour
Manufacturing overhead Total cost

Unit cost

4.

(a)

List the source documents for the direct materials to this job.

and direct labour costs that are assisned

[2

marks]

(b)

Calculate the predetermined manufacturing overhead rate and indicate how this rate was determined. [ 2 marks]

5.

Usingtheinformationpresentedabove andyouranswers to Question4, determinethe TOTAL cost and the unit cost of the completed job. [ 4 marks]

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02201032/CAPE/2009

-46.
Sunflower Manufacturing Company produces high-quality furniture on a job order basis. In March, production consisted of only two jobs, Jobs 65 and 66. These jobs were started and completd during the month. Manufacturing overhead was applied at a rate of $8 per direct labour
hour. The following cost data were recorded for the month:

Direct materials Direct labour

65 $ 20 125
Job

Job 66
$16 050 $19 600

cost Hours Selling price

000 6000 $193 163

$ 44

2700
597 250

Actual manufacturing overhead for the month totalled S68 700.

(a) (b) 7. (a) (b)

Calculate the amount by which the manufacturing overhead cost was over-applied or [ 2 marks] under-applied during the month. Compute the gross profit for Job 65.
[ 4 marks]

Define the term 'standard

costs.' stated.

[ 2 marks]

State ONE condition under which previously established standard costs could be revised. [ 2 marks] Include an appropriate example for the condition

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02201032lcAPEl2009

.-58.
Listed below are EIGHT technical accounting terms that are associated with the evaluation of long-term investment projects.

\i (

(a) (b) (c) (d) (e) ( (g) (h)

Annuity
Average annual net income
Capital budgeting

Discounting Internal rate ofreturn Paybackperiod

Present value

Return on average investment

Each ofthe following statements defines ONE of these technical terms. List the EIGHT technical accounting terms and match EACH with its definition by indicating the correct number (1-8) of the matching statement. Each definition should be used only once.

l. 2. 3. 4. 5. 6. 7. 8.

The process of analysing investments in plant assets The number ofyears required to recover the entire cost of an investment from its net cash

flows

A stream of equal

cash flows to be received or paid

The estimated average annual income of an investment expressed as a percentage of its initial cost
The numerator in the return on average investment computation The amount an investor should be willing to pay today for the right to receive a specified amount of cash at a specified future date The process of computing the present value of future cash flows The rate of return that equates a project's cash inflows to its cash outflows I

marks]

g.

List TWO factors that should be taken into consideration when assessing the adequacy of the rate of return of a capital investment proposal. [ 2 marks]

END OF TEST

0220t032/cAPE/2009