Managerial Accounting (ACCM3204)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2017
Question 1: (20 marks)
For the month of December 2016, the following expenses were taking into consideration in the
calculation of the general accounting expenses; personnel expenses 800,000; depreciation
1,200,000; electricity 100,000; rent 250,000; material purchased 1,000,000.
After analysis of these expense, it was revealed that:
- Personnel expenses was having 100,000 as unpaid salary of the month of November 2016
- The depreciation considered was for the year 2016.
- The rents paid was for two months (December 2016 and January 2017)
- Amongst the materials bought, ¾ was to be consumed in December 2016.
- The opportunity cost which supposed to be 10% per year on the capital of 60,000,000 was not
considered.
Work required:
1.1- Calculate the incorporable expenses for the month of December 2016. (10matks)
1.2- Make the primary repartition of indirect expenses knowing that they are shared: 10% to
administration, 5% to maintenance, 20% to supplying, 50% to production and 15% to
distribution. (10 marks)
Question 2 (15 marks)
Maigod industry manufactures coconut caramel. The manufacturing process requires: coconut,
oil of brand “olive” and other items (sugar, gaz, salt, wrappen paper, depreciation). The
coconuts are bought raw in kg at the price of 7,125FCFA for 10kg. During the shelling out, the
raw coconuts loss 25% of their weight, considered as wastes. For a given period, the enterprise
has bought and consumed 40kg of raw coconuts. In addition, they have consumed:
• 0.5 liter of oil at the price of 800FCFA per liter and per 2kg of shelled nuts.
• 100FCFA of other items per kg of shelled nuts
• Direct labor at 200FCFA per kg of shelled nuts
The shelled nuts obtained are packed in sachets of 20 grams.
Work required:
2.1- How many kg of shelled nuts were obtained? (2marks)
2.2- how many sachets of shelled nuts were obtained? (3marks)
2.3- determine the total cost and unit cost of production (per sachet) under the following
hypothesis:
a) The wastes are of no use and their evacuation has cost 150FCFA per kg. (5 marks)
b) The wastes are sold (without any additional treatment) at 500 FCFA per kg. (5marks)
Question 3: (10 marks)
The production of orange juice in a company passes through four processes; 1, 2, 3 and 4 and
the output of each process is the input for the subsequent process. The losses in the three
processes are respectively 10%, 5%, 2% for processes 1, 2 and 3.at the end of process 3, water
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
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Semester Exam Course: Managerial Accounting: ACCT305
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was added and this addition increased the weight of output of process 3 by 2% such as to have
the output of process 4 which finally was 52305.0696kg of orange juice.
3.1. Which costing system can be applicable in such company? (2marks)
3.2. What is the number of kg of orange required to be used at the beginning of process 1?
(4marks)
3.3. Calculate the cost of orange bought knowing that a kg was bought for 100FCFA. (4marks)
Question 4: reproduce and complete the following table of indirect expenses (20marks).
Total Primary total Administration Assistance Maintenance Secondary total
Administration 150,000 - - -
Assistance 60,000 20% - 1
Maintenance 90,000 20% 3 -
Supplying 117,400 20% 3 1
Production 158,400 20% 4.5 2
Distribution 76,200 20% 4.5 1
Question 5 (5marks)
Differentiate cost accounting from financial accounting at the level of:
a) Law (2.5 marks)
b) Expenses (2.5marks)
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