MAC2601 Oct/Nov 2014 exam paper — questions

Every question, by topic

1. Question 1.1 · Nature and behaviour of costs; cost estimation · 2.5 marks

   Question 1 consists of eight multiple-choice items (here numbered 1.1–1.8), each apparently worth 2.5 marks so that the eight items together make up the 20 marks allotted to this question, to be completed within 24 minutes. The items are based on several unrelated costing scenarios drawn from divisions of Blue Sky Industries Limited, a large diversified listed company. Blue Sky Industries Limited's freight and logistics division, run by Sam Smith, only despatches standard recorded parcels ordered online. Over several months the following units-posted and total-cost figures were recorded: 35 000 units cost R10 005 000; 40 000 units cost R11 380 000; 45 000 units cost R12 755 000; 48 000 units cost R13 580 000; 55 000 units cost R15 575 000; and 57 000 units cost R16 125 000. Using this information, determine the fixed cost component at the activity level of 40 000 units.Show the full questionShow less

2. Question 1.2 · Nature and behaviour of costs; cost estimation · 2.5 marks

   Question 1 consists of eight multiple-choice items (here numbered 1.1–1.8), each apparently worth 2.5 marks so that the eight items together make up the 20 marks allotted to this question, to be completed within 24 minutes. The items are based on several unrelated costing scenarios drawn from divisions of Blue Sky Industries Limited, a large diversified listed company. Using the same units-posted and total-cost data for Blue Sky Industries Limited's freight and logistics division (35 000 units at R10 005 000; 40 000 units at R11 380 000; 45 000 units at R12 755 000; 48 000 units at R13 580 000; 55 000 units at R15 575 000; and 57 000 units at R16 125 000), calculate the fixed cost at the activity level of 57 000 units.Show the full questionShow less

3. Question 1.3 · Nature and behaviour of costs; cost estimation · 2.5 marks

   Question 1 consists of eight multiple-choice items (here numbered 1.1–1.8), each apparently worth 2.5 marks so that the eight items together make up the 20 marks allotted to this question, to be completed within 24 minutes. The items are based on several unrelated costing scenarios drawn from divisions of Blue Sky Industries Limited, a large diversified listed company. Sam Sales is the marketing executive responsible for the FOX Sat FXS1 decoders. Each decoder, imported from the PRC, has a landed cost of R300. Sam wants to earn a gross profit on sales of 37,5%. Calculate the mark-up on cost, expressed in Rand.Show the full questionShow less

4. Question 1.4 · Cost-volume-profit analysis · 2.5 marks

   Question 1 consists of eight multiple-choice items (here numbered 1.1–1.8), each apparently worth 2.5 marks so that the eight items together make up the 20 marks allotted to this question, to be completed within 24 minutes. The items are based on several unrelated costing scenarios drawn from divisions of Blue Sky Industries Limited, a large diversified listed company. The marketing section that sells the FOX Sat FXS1 decoders incurs fixed costs of R3 486 000 per month and is required to earn a contribution of 10% on sales. The board of directors has fixed the selling price of the FXS1 decoders at R450,00 per unit. Determine how many decoder units must be sold for the section to break even.Show the full questionShow less

5. Question 1.5 · Accounting for material, labour and overheads; inventory valuation · 2.5 marks

   Question 1 consists of eight multiple-choice items (here numbered 1.1–1.8), each apparently worth 2.5 marks so that the eight items together make up the 20 marks allotted to this question, to be completed within 24 minutes. The items are based on several unrelated costing scenarios drawn from divisions of Blue Sky Industries Limited, a large diversified listed company. The Sports Entertainment division imports the Blue Ray 3D TV. During September 2014 the following movements occurred: on 31 August 2014 the closing stock was 351 units valued at R3 845,00 each; on 3 September 2014, 450 units were purchased for a total of R1 755 000; on 4 September 2014, import freight of R390,00 per unit was incurred on the 450 TVs; on 11 September 2014, 500 units were sold at R9 000,00 each; on 18 September 2014, 300 units were purchased for a total of R1 185 000; on 19 September 2014, import freight of R350,00 per unit was incurred on the 300 TVs; on 23 September 2014, 100 units were sold at R8 750,00 each; and on 23 September 2014 a delivery freight cost of R420,00 per unit was incurred on those 100 TVs sold. Calculate the value of the closing stock on 30 September 2014 using the First-In-First-Out (FIFO) basis of accounting.Show the full questionShow less