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CMA Test

The document contains 6 problems related to cost accounting. Problem 1 asks to calculate the level of fixed costs based on total costs and units produced at two activity levels. Problem 2 provides estimated costs for a job and asks to calculate the total cost. Problem 3 provides purchasing and sales data and asks to calculate ending inventory under FIFO and LIFO. Problem 4 provides budgeted and actual overhead amounts and hours to calculate overhead under/over absorbed. Problem 5 provides inventory receipts and issues data to calculate ending inventory value under weighted average. Problem 6 provides employee pay rate and production data to calculate gross pay for the day.

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36 views2 pages

CMA Test

The document contains 6 problems related to cost accounting. Problem 1 asks to calculate the level of fixed costs based on total costs and units produced at two activity levels. Problem 2 provides estimated costs for a job and asks to calculate the total cost. Problem 3 provides purchasing and sales data and asks to calculate ending inventory under FIFO and LIFO. Problem 4 provides budgeted and actual overhead amounts and hours to calculate overhead under/over absorbed. Problem 5 provides inventory receipts and issues data to calculate ending inventory value under weighted average. Problem 6 provides employee pay rate and production data to calculate gross pay for the day.

Uploaded by

nandarsoe105
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

The total cost of production for two levels of activity is as follows:


Level 1 Level 2

Production (units) 3,000 5,000

Total cost ($) 6,750 9,250

The variable production cost per unit and the total fixed production cost both remain constant
in the range of activity show. What is the level of fixed costs?

2. A company operates a job costing system. The estimated costs for job 123 are as follows.
Direct labour 16 hours @ $ 10 per hour
Direct material 7 hours @ $ 22 per hour
Variable production overheads are recovered at the rate of $3 per direct labour hour.
Fixed production overheads for the year are budgeted to be $ 400,000 and are to be
recovered on the basis of the total of 80,000 direct labour hours for the year. Other
overhead, in selling, distribution and administration, a recovered at the rate of $ 100 per
job. What is the total cost of job 123.

3. Y Co makes the following purchases and sales.


1 February Purchases 4,000 units for $10,000
28 February Purchases 1,000 units for $ 2,000
14 March Sales 3,000 units for $ 13,000
31 March Purchases 1,500 units for $ 3,750
14 April Sales 500 units for $ 1,200
(a) At 30 April which of the following closing inventory valuations using FIFO.
(b) At 30 April which of the following closing inventory valuations using LIFO.
4. The following data is variable for a paint department for the latest period.
Budgeted production overhead $ 150,000
Actual production overhead $ 150,000
Budgeted machine hrs 60,000
Actual machine hrs 55,000
How much was the total overhead under or over absorbed for the period.
5. A wholesaler had opening inventory of 300 units of product valued at 20 per unit at the
beginning of January. The following receipts and sales were recorded during January.
Date 2 Jan 12 Jan 21 Jan 29 Jan
Receipt 400
Issues 250 200 75
The purchase cost of receipt was $ 25.75 per unit. Using a weighted average method
of valuation, calculate the value of closing inventory at the end of January.
6. The following data relate to work in the finishing department of a certain factory.
Normal working day 7 hr
Basic rate of pay per hr $5
Standard time allowed producing 1 unit 4 minute
Premium bonus payable at the basic rate 60% of time save
On a particular day one employee finishes 180 units. What is gross pay for the day?

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