CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Exam Questions

Refer to the exhibit.

RD operates as shopfitters in the retail industry. Job 265 involves the refit of a major city toy store. The following information is available for the job:

What is the selling price for Job 265?

Normal loss which has a scrap value in a process should be valued at:

A new range of clothing is very unique and will not appeal everyone. You are aware that if you were to equally distribute all the units there is a chance that they would not all sell.

You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.

However, whilst this has the potential to be very profitable it also has the lowest probability.

By making this decision you are considered to be_______.

C Ltd produces a chemical in a single process. Information for this process last month is as follows:

(a) Opening work in progress - 10000 kg valued at 10000 for direct material and 7500 for conversion costs.

(b) Materials input - 25000 kg at 1.10 per kg.

(c) Conversion costs - 17000

(d) Output during the month - 23000 kg.

(e) There were 7500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.

(f) Normal loss for the month was 10% of input and all losses have a scrap value of 80p per kg.

What was the average cost per kg of finished output during the month?

In the process account, the accounting treatment of the value of the abnormal loss is:

In an integrated cost and financial accounting system, the accounting entries for PAYE deducted from gross wages would be:

Refer to the exhibit.

Which is the correct journal entry required to record a favourable material usage variance in an integrated accounting system?

The correct journal entry required to record a favourable material usage variance in an integrated accounting system is: