Cost Accounting (ACCM3103)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 300
Year: 2018
Section A; COST ANALYSIS
Part one: Structural questions
A- ANSWER TRUE OR FALSE (2 MARKS X 6=12 MARKS)
1- In cost accounting, expenses are allocated by destination
2- Job costing, batch costing and standard costing are all costing methods
3- Cost and costing are not the same
4- Waste are products obtained from the main product after additional treatment
5- FIFO, WAC, NIFO are all inventory systems
6- Non incorporable expenses are part of general accounting expenses which after analysis
are to beaded in the calculation of incorporable expenses
B- Give two objectives of cost accounting (1mks)
PART 2: case study (MCQ) (2MKS X 11=22 MKS)
You are given the following information concerning the activities of a farmer which consist of
buying and keeping a batch of 100 “3 weeks chicks” for a duration of 30 days. Within the 30
days, the chicks consumed feeds which initially are mixed by the farmer, this feeds are obtained
through the combination of several ingredients
In other to mix one bag of feed, the following are needed.
Ingredien
ts
uni
t
Qt
y
UP Ingredien
ts
Uni
t
QT
Y
UP ingredien
ts
Unit QT
Y
UP
Maize Kg 28 10
0
Calcium Kg 1.9 50
0
Others Kg 10 30
0
soja Kg 11 35
0
belgotox g 100 3.5 Bag Bag(1
)
1 10
0
(1) The weight of one bag is 20g. also, one hour of direct labour is remunerated at 1,500frs.
Each is used to mix four bags of feed
NB:IN THE MIXING PROCESS, WIND BLOWS AWAY 2% OF THE INITIAL
WEIGHT OF THE INGREDIENTS (EXCEPT BAG)
During the month of December 2017, you were given the following information:
Purchases
✓ Maize: 15 bags of 100 kg each
✓ Soja: 10 pockets of 25 kg each
✓ Calcium: 5 packets of 10 kg each
✓ Belgotox: 9 packets of 5 kg each
✓ Other ingredients: 154kg
✓ Bags 1kg
Transportation of item bought: 20000f ( to
be shared proportionally to the kilograms
bought)
Other expenses and production of the month
include:
✓ 100 “3 weeks chicks days” at 1,300F
each (they were supplied free of
charge)
✓ Consumption/production: 12 bags of
feed were mixed, and 10 bags were
used for feeding the fowls.
✓ Direct labour: 1,500 f per working day
✓ Duration of production 30 days of
work
✓ Construction of cage 200,000frs
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
1
st
Semester Exam Course: Cost Accounting: ACCT305
Credit Value:
Course Lecturers:
Time: Course Status: Date: 2018
Venue: Instruction:
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Additional information:
- The cage will totally depreciate after the production of 20 batches (10,000f per batch)
- All the 100 fowls produced were sold at 4,500frs each. The commission on sales
represent 10% of the selling price
Indirect expenses
elements amounts supply production Distribution
electricity 15,000 0 80% 20%
Water 20,000 10% 70% 20%
Measurement
unit
Kg bought Number of
fowls produced
450f of turnover
for your recruitment as intern, you are required to select the letter that corresponds to the correct
answer for the following questions:
1- Which costing method can be applied by the farmer?
a) Standard costing b) job costing c) process costing d) batch costing
2- What is the total loss in kg per bag of feed after mixed?
a) 1kg b) 50kg c) 1.02 kg d) 0 kg
3- What is the weight of one empty bag?
a) 20kg b) .2 kg c)2kg d) 0.02kg
4- How many empty bags were bought?
a) 50 bags b) 20 bags c) 10 bags d) 12 bags
5- What is in kg the net weight of one bag of feed mixed?
a) 49.9996kg b) 51.02 kg c) 51 kg d) 50kg
6- What is the cost of working unit per section after completion of the overhead absorption
table?
letters Supply production Distribution
A 1.04 260 70
B 1 260 70
C 1.04 260 7
D 1 260 7
7- What is the unit purchase cost of the items bought in kg?
letters maize Soja calcium belgotox others Bags
(a) 111 361 511 3.61 311 100.22
(b) 111 361 511 3511 311 5011
(c) 111.04 361.04 511.04 3511.04 311.04 5011.04
(d) 111 361 511 14.5 311 5011
8- What is the unit production cost of a bag of feed?
(a) 11,986.22 b) 12,000 c) 11,636.47 d) 115,337.27
9- What is the production cost of a fowl?
a) 3,308.622 b) 3,263.727 c) 3,000 d) 3,500
10- What is the cost price per fowl?
a) 4,000 b) 3,765.622 c) 3,828.622 d) 3,680.622
11- What is the costing result per fowl?
a) 450 b) 671.378 c) 734.378 d) 600.622
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