Free BA2 Exam Braindumps
Fundamentals of Management Accounting Questions 181–185 (page: 38)

A company uses an integrated accounting system.

The accounting entries for depreciation of machinery used for production would be.

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?

CORRECT TEXT

Refer to the exhibit.



JB Limited pays 60% of invoices for goods purchased on credit, in the month after purchase. The remaining 40% are paid a month later.

Invoices are received on the last day of each month. Invoices paid in the month following purchase attract a prompt payment discount of 2%, whilst those paid in the second month attract only a 1% discount.

Credit purchases for April to June are budgeted as follows:

The amount budgeted to be paid for credit purchases in June is:

Place the following budgets in the order that they would be prepared. Assume that sales volume is the principal budget factor:

(a) Production

(b) Materials usage

(c) Sales

(d) Materials purchases

During the first financial period of this year a company posted profit of £340,000. However, their overheads were over absorbed by £20,000 in this period. As a result they tried to update their absorption rate for the current

period and as such they ended up under absorbing their overheads by £12,000.

They have also reported a sales volume increase of 550 when comparing this period to last.

You have been given the following information on unit cost/prices:

Selling price = £95 per unit

Variable production cost per unit = £15

Variable selling cost per unit = £18

Fixed overhead per unit = £8

They have asked you to reconcile their profit between periods.

Based on the information you have been given, what is their profit for the current period?