Advanced level 2025 South West mock cost and management accounting 2
Advanced level 2025 South West mock cost and management accounting 2
AZUZU contractors started work on a two– year–factory construction project on I JuJy 2022 n
| the contract for the first year are as follows: Materials purchased and delivered to site Meterials issued from store , |
eH | FCFA 100,000 |
| Materials returned to store | 80,000 10,000 |
|
| Site wages Architect’s fees Site direct CXpCESS? Paid to CIMAF Ltd for sub–cohtraCtcd – Allocated overheads |
200 ,000 30,000 70,000 150,000 240,000 |
|
| Plant sent to site | 500,000 |
On 31/12/2022. materials on site costs 20,000FCFA and there was 20.000FCFA outstanding for wages. Tlie
value of plant was estimated at 390,000 FCFA.
The company received an architect’s certificate for 1,200,000 FCFA in respect of work carried out to date.
This amount was received at the end of the year less 10% retention money. As the provision for the
possibility for further expenditure becoming necessary on the work carried out so far, the company takes
credit for only two–thirds of the profit on work certified. Work costing 60,000FCFA was not certified as
being worthy of payment yet.
| a) Prepare the contract account of the year ended 31/03/2022 b) What is the value of the work– in–progress at the year–end? |
(15 marks) (5 marks) (Total 20 marks) |
2. The fixed cost of TITT Ltd steps up by 30% at an output level of 30,000 units and steps up again by 50%
once output exceeds 50,000 units. The total cost incurred during tire first semester of 2024 at different output
levels are given as follows:
| January 10 000 |
February 30 000 |
March 60 000 |
April 70 000 |
May 90 000 |
June 120 000 |
Output levels (units) Total cost (CFAF) |
| 8 600 000 18 600 000 34 320 000 39 320 000 50 400 000 65 400 000 * |
The variable cost per unit remains constant throughout the period.
Required:
a) Calculate variable cost per unit.
b) Calculate the fixed cost of the company at the following output levels:
Below 30,000 units
Between 30,000 and 50,000 units
(iii) Above 50,000 units
c) Established a graph for the stepped fixed cost of the company.
d) Determine the total cost of company at an output level of 80,000 units.
3. ’’GUINNESS Cameroon SA” manufactures alcoholic and non–alcoholic drinks. One particular non–
^C<
The followinginformation relates to thefinal process (colouring) for control period 2.
Opening WIP of 60,000 litres complete as to:
| Material from process 2 Added materials |
100% 90% |
10,560 „ 2,160 |
| Labour | 80% | 1 ,296 |
| Production overhead | 80% | 1.944 mm |
