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SUGGESTED SOLUTIONFINAL EXAMINATION APR 2011

Course CodeFAR 360

CourseIntegrated Accounting Study

Prepared byMAC110 2 E

Date of Submission3th January 2014

Question No.MarksFile Name

1 A.a.2MAF151 FINAL EXAM APR 2011.docx

1 A.b.3MAF151 FINAL EXAM APR 2011.docx

1 A.c.3MAF151 FINAL EXAM APR 2011.docx

1 B.a6MAF151 FINAL EXAM APR 2011.xlsx

1 B.b2MAF151 FINAL EXAM APR 2011.docx

2 A.a .3.5MAF151 FINAL EXAM APR 2011.xlsx

2 A. b. 8.5MAF151 FINAL EXAM APR 2011.xlsx

2 A. c. 1MAF151 FINAL EXAM APR 2011.xlsx

2 A. d.3MAF151 FINAL EXAM APR 2011.xlsx

2 B.4MAF151 FINAL EXAM APR 2011.docx

QUESTION 1

a.Cost object can be defined as any activity for which separate measurement of cost is desired. For example, cost of manufacturing a car and cost of rendering a service such hotel.

b. Three (3) purposes for which cost information is required are: To allocate costs for internal and external reporting. To help for decision making, to prepare budget & to measure actual cost. To help manager to plan & control the cost.

c.Item

i.Direct material priceuncontrollable

ii.Supplies/other direct material usagecontrollable

iii.Maintenance of machinerycontrollable

iv.Depreciation of machineryuncontrollable

v.Direct labourcontrollable

vi.Factory rentuncontrollable

Refer to MAF151 FINAL EXAM APR2011.xlsxB.a.i.Laundry service costsa.ii.Administration costs

a.iiiSelling costs

B.b.

SERVICE COMPANYMANUFACTURING COMPANY

1. Provide services to the customersProvide products to the customers

2. Output/service cannot be storedOutput/product can be stored

Example: Barber provide services to cut his customers hairExample: Syarikat Biskut Hup Seng produced its biscuits product by using raw materials.

QUESTION 2

Refer to MAF151 FINAL EXAM APR2011.xlsA.a.Annual usage of Special Wheat Flour, Cost per order Holding cost per kg of the flour. b. Tabulation of the TC at 12, 6, 5 & 4 times per year.

c.EOQ

d.Calculation to support reason.

B.Differences between FIFO, LIFO & WA:

FIFOLIFOWEIGHTED AVERAGE

Accepted by IRB Not accepted by IRB Accepted by IRB

Closing stock at higher price Stock valuation at the oldest price No unrealized stock profit/loss

First material in will be the first material issued Most recent batch received, will be the first to be issued Material issued is valued at average cost price

Lower cost of sale , higher profit Higher cost of goods sold, lower the profit Constant fluctuation of price

QUESTION 3

QUESTION 4

QUESTION 5

END OF SUGGESTED SOLUTION