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Introduction To Management Accounting Question Paper
Introduction To Management Accounting
Course:
Institution:
question papers
Exam Year:
2011
Question one
Explain the following terms as used in management accounting
a)Manufacturing overheads
b)Direct costs
c)Equivalent units of production
d)Standard costs
e)Product costs
Question 2
ABC Company limited manufactures a product that goes through three processes. The following information relates to cost and activity in process X during March 2011.
Percent completed
Units materials conversion
Work in progress march 1 30,000 100 40
Started into production 120,000
Completed and transferred out 140,000
Work in progress march 31 10,000 100 80
The beginning work in progress inventory contained sh 24,000 in material cost and sh 14,000 in conversion cost. An additional sh 108,000 in material cost and sh 170,000 in conversion cost were added to production during the month.
Required
a)Determine the cost of goods completed and transferred out.
b)Determine the cost of the ending work in process inventory.
(use both weighted-average method and FIFO method.)
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