Free BA2 Exam Braindumps (page: 54)

When compiling profit statement using a marginal costing system we must calculate the contribution. Once we have the contribution, we must deduct a specific amount to calculate the profit. Which of these values

should we NOT deduct? (Select ALL that apply.)

A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.
Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was $158,000.

The accounting entries for the production overhead under- or over-absorbed for the period would be:

CORRECT TEXT

A profit margin of 20% of sales is the same as a profit on total cost of:

Give your answer to 2 decimal places.

LC produces a household detergent in a single process. Information for this process for last month is as follows:

(a) Materials input - 11,000 Litres at £2.00 per litre.

(b) Conversion costs - £23,000

(c) Output during the month - 8,000 litres.

(d) There were 2,000 units of closing work in progress which was complete as to materials and 35% complete as to conversion.

(e) Normal loss for the month was 5% of input and all losses have a scrap value of 50p per
litre.

(f) There was no opening work in progress.

The value of closing work in progress at the end of the month is closest to: