cameroon gce advanced level 2025 cost and management accounting 2

SECTION A

1. Bokantai Ets. produces a certain product named mosquitoes repellant. The total usage of material for the first semester of the year was 936,000 Kg distributed as follows:

   Months | January | February | March | April | May | June

   Coefficients | 0.9 | 1.2 | 1.6 | 0.8 | 1.8 | 1.5

   Additional Information: Ordering cost per order is 1,800 CFAF and carrying cost is 5 CFAF per kg per annum. Reorder quantity is 110,000 Kg and lead time is 2 months.

   Required

   i. Determine the monthly usage using the coefficients (4 marks)

   ii. Calculate the reorder stock level (4 marks)

   iii. Calculate the Minimum stock level (4 marks)

   iv. Calculate the Maximum stock level (4 marks)

   v. Calculate the average stock level (4 marks)

   (Total 20 marks)

2. MATOH manufactures and sells its components in batches. The batches pass through four departments. The company has received an order for 200 components which will be made as Batch CPX4. The following information is related to the Batch CPX4:

   Materials- 404,750 CFAF

   Labour:-

   50 hours in Department A at 300 CFAF per hour

   100 hours in Department B at 400 CFAF per hour

   32 hours in Department C at 200 CFAF per hour

   20 hours in Department D at 350 CFAF per hour

   Overheads are absorbed using direct labour hours. The budgeted overheads and labour hours for the period were 3,500,000 CFAF and 28,000 hours respectively. Administration overheads are charged at 10% of factory cost.

   The company makes a profit of 20% of the selling price of all components sold.

   Required:

   i. Determine the overhead absorption rate. (2 marks)

   ii. Prepare a cost statement for the batch showing the prime cost, production cost and total cost (14 marks)

   iii. Determine the selling price (4 marks)

   (Total 20 marks)

3. The following information gives details of contract N° 852 to be realized on the 31/12/2024.

   The contractor took so long to complete the contract and during that period the architect issues a certificate of value for 1,500,000 CFAF and progress payments are made less 10% retention money.

   The following expenses were realised for the period:

   Head office expenses 20,000 CFAF

   Wages 120,000 CFAF

   Plant sent to store 30,000 CFAF

   Wages accrued as at 31/12/2023 38,000 CFAF

   Prepayments 5,000 CFAF

   Accrued wages 42,000 CFAF

   Material transfer to store 40,000 CFAF

   Overhead expenses 44,000 CFAF

   Plant bought at cost 40,000 CFAF

   Plant transfer to site 110,000 CFAF

   Sub-contractor fee 26,000 CFAF

   Material delivered to site 100,000 CFAF

   Site expenses 30,000 CFAF

   Additional Information:

   It should be noted that the plant bought above was depreciated at 20% straight line method.

   Required:

   i. Determine the Notional profit and the progress payment (5 marks)

   ii. Prepare a contract account to show the profit taken (15 marks)

   (Total 20 marks)