1. (a)
In columnar form, differentiate
between cost accounting and financial accounting.
(b) State five reasons for
providing cost accounting information.
2. (a) What do
you understand by Cost Accounting? State five aims of Cost Accounting.
(b) Write short note on the following with the
aid of diagram:
i. Fixed Cost
ii. Variable Cost
iii. Mixed Cost
iv. Total Cost
v. Average Cost
3.
Ajigbotoko
Nigeria Limited pays a worker by differential piecework. The scheme is as follows:
|
Units
per day
|
Rate
per unit
|
|
Up to 500
|
#6
|
|
501-700
|
#8
|
|
701-800
|
#9
|
|
801-1,000
|
#10
|
The daily
outputs for a five-week were 680 units, 830 units, 580 units, 950 units, and
470
units.
What will be her gross pay for the week if:
(a) The employer agreed to pay the increased rate
on all units produced.
(b) The employer agreed to pay on the extra output
only.
(c ) Comment on the best option for the employer.
4. (a) What do
you understand by overhead absorption?
(b) The budgeted production overhead and other
budgeted data for Agbomabiwo Limited
are as
follows:
|
Particulars
|
Production Department A
|
Production Department B
|
|
Budgeted Overhead Cost
|
#82,000
|
#15,000
|
|
Other
Information:
Direct Material Cost
Direct Material Cost
Machine Hours
|
#66,000
#90,000
10,000hrs
|
|
|
Direct Labour Hours
|
|
20,000hrs
|
|
Unit of production
|
|
15,000
|
Required: Calculate the production overhead
absorption rate using the various basis of apportionment.
5. The following information relates to Hall Mark
Manufacturing Limited from July 1 to 31st
December,
2017.
|
Purchases:
Date
|
Quantity
|
Cost
(N)
|
|
July 5
August 1
September 3
October 4
December 7
|
200
400
600
400
500
|
720,000
1,520,000
2,400,000
1,400,000
1,400,000
|
|
Sales:
August 2
October 12
December 12
|
500
600
400
|
2,500,000
2,700,000
1,500,00
|
Required:
Calculate
the cost of the product issued during the period and the value on hand on 31st
December,
2017 using:
(a) FIFO
Method
(b) LIFO
Method
6. The following information relates to Foyegbe
Manufacturing Limited from July 1 to 31st
December, 2017.
|
Purchases:
Date
|
Quantity
|
Cost
(N)
|
|
July
5
August
1
September 3
October 4
December 7
|
200
400
600
400
500
|
720,000
1,520,000
2,400,000
1,400,000
1,400,000
|
|
Sales:
August 2
October 12
December 12
|
500
600
400
|
2,500,000
2,700,000
1,500,00
|
Required:
Calculate
the cost of the product issued during the period and the value on hand on 31st
December,
2017 using:
(a)
Weighted Average Method
(b) LIFO Method
7. The following data relate to the overhead
expenditure of contract cleaners ( for industrial cleaning) at two activity
levels:
|
Square metres cleaned
|
Overhead
|
|
22,750
|
#75,050
|
|
15,600
|
#88,985
|
When more
than 30,000 square metres are industrially cleaned, it is necessary to have
another supervisor and so the fixed costs rise to #48,850.
You are required:
(a) What is the estimate of the overheads if
36,500 square meters are to be cleaned?
(b) Calculate the estimated variable cost if
32,000 square metres are to be industrially
cleaned.
8. The transactions as shown below are used in pricing and valuing the materials of Feyikogbon Nigeria Limited.
June 1 Received 2,000 units at N2 per unit.
June 15 Received 520 units at N2.10 per unit.
June 25 Issued 1,400 units
July 10 Received 800 units at N2.30 per unit.
July 26 Received 600 units at N2.50 per unit.
August 20 Issued 1,240 units.
September 24 issued 480 units.
October 12 Received 1,000 units at N2.20 per unit.
October 28 issued 760 units.
Required: using the data above to calculate:
(i) First In First Out
(ii) Last In First Out
(iii) Weighted Average
(iv) Simple Average
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