0% found this document useful (0 votes)

74 views48 pages

Wac12 01 Que 20240123

This document outlines the examination details for the Pearson Edexcel International Advanced Level Accounting paper scheduled for January 22, 2024. Candidates must fill in their personal information and follow specific instructions for answering the questions, which include calculations and the use of a Source Booklet. The total marks for the paper are 200, and candidates are advised to manage their time effectively during the exam.

Uploaded by

IB Doc

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

74 views48 pages

Wac12 01 Que 20240123

Uploaded by

IB Doc

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 48

Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Number Candidate Number

Pearson Edexcel International Advanced Level

Monday 22 January 2024
Afternoon (Time: 3 hours) Paper
reference WAC12/01
Accounting  

International Advanced Level

UNIT 2: Corporate and Management Accounting

You must have: Total Marks

Source Booklet (enclosed)

Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
•• Answer both questions in Section A and three questions from Section B.
All calculations must be shown.
• Answer the questions in the spaces provided
– there may be more space than you need.
• Do not return the Source Booklet with the question paper.
Information
•• The total mark for this paper is 200.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
•• Calculators may be used.
The source material for use with Questions 1 to 6 is in the enclosed Source Booklet.

Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.

Turn over
m
co
e.

*P73476RA0132*
at

P73476RA
-m
am

©2024 Pearson Education Ltd.

S:1/1/1/1/1/1/
.e
w
w
w
SECTION A
Answer BOTH questions in this section. Write your answers in the spaces provided.

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Source material for Question 1 is on pages 2 to 4 of the Source Booklet.
1 (a) Calculate the following ratios for the year ended 31 December 2023.
You must state the formula used in each calculation.
(i) Dividend per share
(5)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) Dividend yield

(4)

2
.e

*P73476RA0232*
w
w


w
(iii) Earnings per ordinary share
(6)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

(iv) Price earnings ratio

(4)

3
.e

*P73476RA0332*
w

Turn over
w


w
(v) Dividend cover
(4)

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

m
co
e.
at
-m
x am

4
.e

*P73476RA0432*
w
w


w
(vi) Gearing ratio
(12)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

5
.e

*P73476RA0532*
w

Turn over
w


w
(vii) Return on capital employed.
(8)

m
co
e.
at
-m
x am

6
.e

*P73476RA0632*
w
w


w
(b) Evaluate the financial performance of Pomos plc for the year ended
31 December 2023, from the point of view of a shareholder, compared to the
performance for the year ended 31 December 2022. You should give possible
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

reasons for the changes in the figures compared to the previous year.
(12)

(Total for Question 1 = 55 marks)

at
-m
x am

7
.e

*P73476RA0732*
w

Turn over
w


w
Source material for Question 2 is on pages 6 and 7 of the Source Booklet.
2 (a) Calculate the net present value of the project to build and operate the five new

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
warehouses, at the end of Year 5.
(22)

8
.e

*P73476RA0832*
w
w


w
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9
.e

*P73476RA0932*
w

Turn over
w


w
(b) Calculate the average rate of return per year of the project to build and operate
the five new warehouses, using the initial investment figure.
(12)

10
.e

*P73476RA01032*
w
w


w
(c) Calculate the payback period of the project to build and operate the five
new warehouses.
(9)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

11
.e

*P73476RA01132*
w

Turn over
w


w
(d) Evaluate the project to build and operate the five new warehouses, for
HJK Storage plc, using the calculations made and considering any other
relevant factors.

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(12)

(Total for Question 2 = 55 marks)

co
e.
at
-m

TOTAL FOR SECTION A = 110 MARKS

x am

12
.e

*P73476RA01232*
w
w


w
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA


BLANK PAGE

*P73476RA01332*
w
w
w
.e
x am

Turn over
13
-m
at
e.
co
m
SECTION B
Answer THREE questions from this section. Write your answers in the spaces provided.

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Indicate which question you are answering by marking a cross in the box . If you change your
mind, put a line through the box and then indicate your new question with a cross .

If you answer Question 3, put a cross in the box .

Source material for Question 3 is on pages 8 and 9 of the Source Booklet.
3 (a) Prepare, for the year ended 31 December 2023, the:
(i) Property, Plant and Equipment Provision for Depreciation Account
(5)

m
co
e.
at
-m
x am

14
.e

*P73476RA01432*
w
w


w
(ii) Operating Activities section from the Statement of Cash Flow, in accordance
with International Accounting Standard (IAS) 7.
(19)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

15
.e

*P73476RA01532*
w

Turn over
w

16
.e

*P73476RA01632*
w
w


w
(b) Evaluate the performance of Tangail Supplies plc regarding liquidity for the year
ended 31 December 2023
(6)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

(Total for Question 3 = 30 marks)

m
co
e.
at
-m
x am

17
.e

*P73476RA01732*
w

Turn over
w


w
If you answer Question 4, put a cross in the box .

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Source material for Question 4 is on pages 10 and 11 of the Source Booklet.
4 (a) Calculate the number of clay tiles produced in a week.
(2)

(b) State the formula used to calculate the material price variance.
(2)

m
co
e.
at
-m
x am

18
.e

*P73476RA01832*
w
w


w
(c) Calculate the:
(i) actual price per kg of clay
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

(2)

(ii) standard price per kg of clay.

(5)

m
co
e.
at
-m
x am

19
.e

*P73476RA01932*
w

Turn over
w


w
(d) State the formula used to calculate the material usage variance.
(2)

(e) Calculate the:

(i) total standard quantity of material (clay)
(5)

(ii) standard quantity of material to produce one clay tile.

(2)

20
.e

*P73476RA02032*
w
w


w
(f ) Explain one reason why the two variances, material price and material usage:
(i) may not be linked (may not have an interrelationship)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

(2)

(ii) may be linked (may have an interrelationship).

(2)

m
co
e.
at
-m
x am

21
.e

*P73476RA02132*
w

Turn over
w


w
(g) Evaluate the usefulness of information and communication technology (ICT) in
standard costing and variance analysis for Yegenni Tiles plc.
(6)

(Total for Question 4 = 30 marks)

m
co
e.
at
-m
x am

22
.e

*P73476RA02232*
w
w


w
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA


BLANK PAGE

*P73476RA02332*
w
w
w
.e
x am

Turn over
23
-m
at
e.
co
m
If you answer Question 5, put a cross in the box .

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Source material for Question 5 is on pages 12 and 13 of the Source Booklet.
5 (a) Calculate the total value of the cash offer by WhereHaus plc to purchase
StreatSmartt plc.
(3)

(b) Calculate the total value of the offer to purchase Tania’s shareholding in
StreatSmartt plc.
(2)

m
co
e.
at
-m
x am

24
.e

*P73476RA02432*
w
w


w
(c) Calculate the value of the goodwill in the offer from WhereHaus plc.
(11)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

25
.e

*P73476RA02532*
w

Turn over
w


w
(d) Prepare the Journal entries to close the following accounts in the books of
StreatSmartt plc, on 31 December 2023, before any revaluations had taken place.
Narratives are not required.

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(8)
• Property
• Equipment
• Ordinary shares of £0.50
• Share premium

26
.e

*P73476RA02632*
w
w


w
(e) Evaluate whether shareholders in StreatSmartt plc made the correct decision in
accepting the offer from WhereHaus plc instead of the offer from ScruffStyle plc.
(6)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

(Total for Question 5 = 30 marks)

m
co
e.
at
-m
x am

27
.e

*P73476RA02732*
w

Turn over
w


w
If you answer Question 6, put a cross in the box .

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Source material for Question 6 is on page 14 of the Source Booklet.
6 (a) Calculate, for management, the value of closing inventory for Year 1 using:
• marginal costing
• absorption costing.
(10)

28
.e

*P73476RA02832*
w
w


w
(b) Calculate the profit that would be entered into the external accounts for
HomeFront plc for Year 2.
(10)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

29
.e

*P73476RA02932*
w

Turn over
w


w
(c) Explain two disadvantages of using absorption costing when preparing
financial statements.
(4)

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
1 ............................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... ................................................................................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 ............................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... ................................................................................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) Evaluate the use of marginal costing to HomeFront plc when preparing financial
records and statements.
(6)

(Total for Question 6 = 30 marks)

TOTAL FOR SECTION B = 90 MARKS

TOTAL FOR PAPER = 200 MARKS

e.
at
-m
x am

30
.e

*P73476RA03032*
w
w


w
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA

DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA


BLANK PAGE

*P73476RA03132*
w
w
w
.e
xam

31
-m
at
e.
co
m
m
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA co
e.
at
-m


am x
.e
w
w
w

*P73476RA03232*
BLANK PAGE

32
Pearson Edexcel International Advanced Level
Monday 22 January 2024
Afternoon (Time: 3 hours)
Paper
reference WAC12/01
Accounting
 

International Advanced Level

UNIT 2: Corporate and Management Accounting

Source Booklet
Do not return this Booklet with the question paper.

Turn over
m
co
e.

*P73476RA*
at

P73476RA
-m
am

©2024 Pearson Education Ltd.

S:1/1/1/1/1/1/
.e
w
w
w
SECTION A
Answer BOTH questions in this section.
1 You are the Finance Director of Pomos plc. You have to calculate a number of ratios
for inclusion in the Annual Report to shareholders.
Information concerning the company and its performance for the financial year
ended 31 December 2023 is as follows.

60 million shares issued at a

Ordinary shares of £0.40 each
premium of £0.30 (30p) per share
4.5% irredeemable preference shares of
12 million shares
£1.00 each
4% redeemable preference shares of
8 million shares
£1.20 each
Retained earnings at year end, including
£10 400 000
net profit after tax

General reserve £2 000 000

Foreign exchange reserve £1 600 000

11% debenture 2028 £20 000 000

14% bank loan £2 400 000

Net profit after interest before tax £3 815 000

Tax on profit £635 000

Interim ordinary dividend paid for the year £150 000

Final ordinary dividend paid for the year £0.0175 (1.75p) per share

Market price of share £1.60

m
co
e.
at
-m
am

P73476RA
x

2
.e
w
w


w
Required
(a) Calculate the following ratios for the year ended 31 December 2023.
You must state the formula used in each calculation.
(i) Dividend per share
(5)
(ii) Dividend yield
(4)
(iii) Earnings per ordinary share
(6)
(iv) Price earnings ratio
(4)
(v) Dividend cover
(4)
(vi) Gearing ratio
(12)
(vii) Return on capital employed
(8)

m
co
e.
at
-m
am

P73476RA
x

3
.e
w

Turn over
w


w
The following information is available for the previous financial year, ended
31 December 2022.

Dividend per share £0.018 (1.8 pence)

Dividend yield 1.5%

Earnings per ordinary share £0.042 (4.2 pence)

Price / earnings ratio 28 times

Dividend cover 2.1 times

Gearing ratio 39%

Return on capital employed 5.8%

At the Annual General Meeting, a shareholder asks, ‘How do the figures for the year
ended 31 December 2023 compare to the previous year, ended 31 December 2022?
I am interested in knowing why the figures are different to last year.’
Required
(b) Evaluate the financial performance of Pomos plc for the year ended
31 December 2023, from the point of view of a shareholder, compared to the
performance for the year ended 31 December 2022. You should give possible
reasons for the changes in the figures compared to the previous year.
(12)
(Total for Question 1 = 55 marks)

m
co
e.
at
-m
am

P73476RA
x

4
.e
w
w


w
BLANK PAGE

m
co
e.
at
-m
am

P73476RA
x

5
.e
w

Turn over
w


w
2 HJK Storage plc is a company that has a number of warehouses that provide storage
space to customers. HJK Storage plc is considering increasing the number of
storage spaces by building five new warehouses.
HJK Storage has been told that the government will take over the land on which the
warehouses are built in five years’ time, to build a motorway. HJK Storage will receive
no money as compensation from the government.
The following information is available for each of the five new warehouses:

Charge per week for Running costs per week

Storage space sold
Year a storage space sold per storage space occupied
and occupied
and occupied (excluding depreciation)

1 50% £35 £5

2 75% £35 £6

3 80% £37 £7

4 90% £37 £8

5 95% £40 £8

The following information applies to one new storage warehouse.

• The cost of building one new warehouse will be £100 000
• One new warehouse will have 80 storage spaces.
• Depreciation per warehouse is expected to be £20 000 per year.
• Assume 52 weeks in a year.
• The company policy is to have a positive net present value on projects within
five years.
• The cost of capital for the company is 10%.
A table showing the discount factors for a 10% cost of capital is given below.

Year 10%

1 0.909

2 0.826

3 0.751

4 0.683
m
co
e.

5 0.621
at
-m
am

P73476RA
x

6
.e
w
w


w
Required
(a) Calculate the net present value of the project to build and operate the five new
warehouses, at the end of Year 5.
(22)
(b) Calculate the average rate of return per year of the project to build and operate
the five new warehouses, using the initial investment figure.
(12)
(c) Calculate the payback period of the project to build and operate the five
new warehouses.
(9)
(d) Evaluate the project to build and operate the five new warehouses, for
HJK Storage plc, using the calculations made and considering any other
relevant factors.
(12)
(Total for Question 2 = 55 marks)

TOTAL FOR SECTION A = 110 MARKS

m
co
e.
at
-m
am

P73476RA
x

7
.e
w

Turn over
w


w
SECTION B
Answer THREE questions from this section.
3 You are the Financial Accountant for Tangail Supplies plc.
Extracts from the Statements of Financial Position for the last two years are
shown below.

31 December 2022 31 December 2023

ASSETS £ £
Non‑current assets
Property, plant and equipment 7 128 000 6 781 000
Provision for depreciation (3 765 000) (3 106 000)
Property, plant and equipment carrying value 3 363 000 3 675 000
Intangible assets 2 700 000 2 100 000
6 063 000 5 775 000
Current assets
Inventories 5 136 000 5 320 000
Trade receivables 309 000 299 000
Other receivables 28 000 37 000
Cash and cash equivalents 141 000 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑
5 614 000 5 656 000
LIABILITIES
Non‑current liabilities
12% debenture ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 5 000 000

Current liabilities
9% Bank loan 2 000 000 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑
Bank overdraft ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 98 000
Trade payables 3 095 000 3 144 000
Other payables 56 000 71 000
Current tax payable 401 000 411 000
5 552 000 3 724 000
m
co
e.
at
-m
am

P73476RA
x

8
.e
w
w


w
Additional information
(i) On 5 January 2023, plant was bought for £2 685 000
(ii) On 14 June 2023, equipment that cost £351 000 with a carrying value of
£216 000 was sold for £191 000
(iii) On 23 August 2023, property that cost £2 880 000 with accumulated provision
for depreciation of £715 000 was sold for £2 812 000
(iv) On 19 October 2023, an intangible asset was purchased for £112 000
(v) The bank overdraft averaged £60 000 for 8 months of the year at an interest
rate of 15% per year.
(vi) The bank loan was repaid on 31 May 2023
(vii) The debenture was issued on 1 June 2023
(viii) The loss after interest for the year ended 31 December 2023 was £283 000
Required
(a) Prepare, for the year ended 31 December 2023, the:
(i) Property, Plant and Equipment Provision for Depreciation Account
(5)
(ii) Operating Activities section from the Statement of Cash Flow, in accordance
with International Accounting Standard (IAS) 7.
(19)
(b) Evaluate the performance of Tangail Supplies plc regarding liquidity for the year
ended 31 December 2023
(6)
(Total for Question 3 = 30 marks)

m
co
e.
at
-m
am

P73476RA
x

9
.e
w

Turn over
w


w
4 Yegenni Tiles plc is a new company, producing clay tiles. The company has just
finished its first week of production. Unfortunately, the company is having problems
with its new computer system and some information has been lost.
The following information is available concerning production.
• Production was 310 clay tiles per hour.
• Production was 8 hours per day for 5 days of the week.
Required
(a) Calculate the number of clay tiles produced in the week.
(2)
The company needs to calculate the material price variance.
(b) State the formula used to calculate the material price variance.
(2)
The following information is available.
• The actual quantity of clay used was 6 448 kg costing a total of £2 708.16
• The material price variance was £128.96 adverse.
(c) Calculate the:
(i) actual price per kg of clay
(2)
(ii) standard price per kg of clay.
(5)
The company has calculated the material usage variance.
(d) State the formula used to calculate the material usage variance.
(2)
The following information is available.
• The actual quantity of clay used was 6 448 kg.
• The material usage variance was £99.20 adverse.
(e) Calculate the:
(i) total standard quantity of material (clay)
(5)
(ii) standard quantity of material to produce one clay tile.
(2)
m
co
e.
at
-m
am

P73476RA
x

10
.e
w
w


w
(f ) Explain one reason why the two variances, material price and material usage:
(i) may not be linked (may not have an interrelationship)
(2)
(ii) may be linked (may have an interrelationship).
(2)
(g) Evaluate the usefulness of information and communication technology (ICT) in
standard costing and variance analysis for Yegenni Tiles plc.
(6)
(Total for Question 4 = 30 marks)

m
co
e.
at
-m
am

P73476RA
x

11
.e
w

Turn over
w


w
5 StreatSmartt plc produces clothes for teenagers and has been making
healthy profits. A larger clothing company, WhereHaus plc, was interested in
purchasing StreatSmartt plc and made an offer to purchase StreatSmartt plc on
31 December 2023
The directors of WhereHaus plc have agreed to purchase all the assets and to settle all
the liabilities.
The Statement of Financial Position of StreatSmartt plc at 31 December 2023 and
notes to the accounts showed:
• all assets £64 500 000
• all liabilities £23 700 000
Equity
• Ordinary shares – £22 600 000 from an issue of £0.50 shares
• Share premium – £13 560 000 from all the shares issued at a premium of £0.30
per share
• Retained earnings £4 640 000
The offer from WhereHaus plc was that for each £0.50 share in StreatSmartt plc,
shareholders would receive £1.08 in cash. The offer was accepted.

m
co
e.
at
-m
am

P73476RA
x

12
.e
w
w


w
Required
(a) Calculate the total value of the cash offer by WhereHaus plc to purchase
StreatSmartt plc.
(3)
Tania held 2 300 shares in StreatSmartt plc.
(b) Calculate the total value of the offer to purchase Tania’s shareholding in
StreatSmartt plc.
(2)
The two companies agreed the following revaluations of some of the assets of
StreatSmartt plc.
• Property has a book value of £14 500 000 and this was increased by 12% to a
current market value.
• Plant was written down by 20% of its carrying value to an agreed value of
£608 000
• Equipment has a carrying value of £410 000 and was written down by £137 000
• Trade receivables with a book value of £78 000 are considered irrecoverable.
(c) Calculate the value of the goodwill in the offer from WhereHaus plc.
(11)
(d) Prepare the Journal entries to close the following accounts in the books of
StreatSmartt plc, on 31 December 2023, before any revaluations had taken place.
Narratives are not required.
• Property
• Equipment
• Ordinary shares of £0.50
• Share premium
(8)
Another large company, ScruffStyle plc, had made an offer to purchase
StreatSmartt plc.
The offer from ScruffStyle plc was that for each £0.50 share in StreatSmartt plc,
shareholders would receive a share in ScruffStyle plc with a current market value
of £1.02
(e) Evaluate whether shareholders in StreatSmartt plc made the correct decision in
accepting the offer from WhereHaus plc instead of the offer from ScruffStyle plc.
(6)
(Total for Question 5 = 30 marks)
m
co
e.
at
-m
am

P73476RA
x

13
.e
w

Turn over
w


w
6 HomeFront plc is a company that produces doors. The company draws up financial
records and statements using marginal costing and absorption costing.
The following information was available for Year 1.
• Direct labour £990 000 per year
• Direct materials £780 000 per year
• Semi‑variable costs £90 000 fixed element per year
£270 000 variable element per year
• Fixed overheads £570 000 per year
• Average monthly production 2 500 doors
• Average monthly sales 2 450 doors
Required
(a) Calculate, for management, the value of closing inventory for Year 1 using:
• marginal costing
• absorption costing.
(10)
The following information was available for Year 2.
• Each cost listed for Year 1 rises by 10% per year to give the cost for Year 2.
• There is no change in the average monthly production from Year 1.
• The number of doors sold in Year 2 is a 4% increase on Year 1.
• Doors are sold for £175 each.
Required
(b) Calculate the profit that would be entered into the external accounts for
HomeFront plc for Year 2.
(10)
(c) Explain two disadvantages of using absorption costing when preparing
financial statements.
(4)
(d) Evaluate the use of marginal costing to HomeFront plc when preparing financial
records and statements.
(6)
(Total for Question 6 = 30 marks)

TOTAL FOR SECTION B = 90 MARKS

TOTAL FOR PAPER = 200 MARKS
m
co
e.
at
-m
am

P73476RA
x

14
.e
w
w


w
BLANK PAGE

m
co
e.
at
-m
am

P73476RA
x

15
.e
w
w


w
BLANK PAGE

m
co
e.
at
-m
am

P73476RA
x

16
.e
w
w


w

Wac11 01 Que 202505101
No ratings yet
Wac11 01 Que 202505101
52 pages
Wac12 01 Que 202505241
No ratings yet
Wac12 01 Que 202505241
56 pages
wbs11 01 Que 202505081
No ratings yet
wbs11 01 Que 202505081
24 pages
Jeh11 01 Que 20221012
No ratings yet
Jeh11 01 Que 20221012
24 pages
University of Cambridge International Examinations General Certificate of Education Advanced Level
No ratings yet
University of Cambridge International Examinations General Certificate of Education Advanced Level
24 pages
2406 9MA0-02 A Level Pure Mathematics - June 2024 PDF PDF Mathematics Mathematical Analysis
No ratings yet
2406 9MA0-02 A Level Pure Mathematics - June 2024 PDF PDF Mathematics Mathematical Analysis
1 page
Timpson's Market Strategy in Dry Cleaning
No ratings yet
Timpson's Market Strategy in Dry Cleaning
1 page
Year 12 PP 1 Eng
No ratings yet
Year 12 PP 1 Eng
29 pages
4CH1 - 2C - Que - 20220118 Ibrahim
No ratings yet
4CH1 - 2C - Que - 20220118 Ibrahim
28 pages
wbs12 01 Que 202505131
No ratings yet
wbs12 01 Que 202505131
24 pages
Cambridge Maths 4 Work Book PDF License Mathematics 49
0% (2)
Cambridge Maths 4 Work Book PDF License Mathematics 49
1 page
University of Cambridge International Examinations International General Certificate of Secondary Education
No ratings yet
University of Cambridge International Examinations International General Certificate of Secondary Education
20 pages
Screenshot 2025-01-22 at 7.21.01 AM
No ratings yet
Screenshot 2025-01-22 at 7.21.01 AM
1 page
wbs13 01 Que 202505291
No ratings yet
wbs13 01 Que 202505291
28 pages
Cambridge International AS/A Level Accounting Revision Guide 2nd Edition Ian Harrison PDF Available
No ratings yet
Cambridge International AS/A Level Accounting Revision Guide 2nd Edition Ian Harrison PDF Available
164 pages
Grade 2 September
No ratings yet
Grade 2 September
1 page
Core Mathematics C12: Pearson Edexcel
No ratings yet
Core Mathematics C12: Pearson Edexcel
52 pages
Screenshot 2025-05-07 at 6.38.44 PM
No ratings yet
Screenshot 2025-05-07 at 6.38.44 PM
1 page
Engineering Mechanics: (8th Edition)
No ratings yet
Engineering Mechanics: (8th Edition)
1 page
4ec1 02r Que 20240606
No ratings yet
4ec1 02r Que 20240606
24 pages
wbs14 01 Que 202506051
No ratings yet
wbs14 01 Que 202506051
24 pages
Cambridge Secondary Checkpoint - Science (1113) April 2019 Paper 2 Mark Scheme PDF Renewable Energy Chemistry
No ratings yet
Cambridge Secondary Checkpoint - Science (1113) April 2019 Paper 2 Mark Scheme PDF Renewable Energy Chemistry
1 page
iGCSE A JUNE 2018 PAPER 1F WRITTEN MS
No ratings yet
iGCSE A JUNE 2018 PAPER 1F WRITTEN MS
24 pages
January 2023 (R) QP FPM
No ratings yet
January 2023 (R) QP FPM
28 pages
FI4 Scores Overview and Analysis
No ratings yet
FI4 Scores Overview and Analysis
2 pages
2306 9MA0-32 A Level Mechanics - June 2023 PDF PDF Friction Motion (Physics)
No ratings yet
2306 9MA0-32 A Level Mechanics - June 2023 PDF PDF Friction Motion (Physics)
1 page
New Senior Mathematics Extension 2 For Year 12 (2019)
100% (9)
New Senior Mathematics Extension 2 For Year 12 (2019)
319 pages
11 of The Best A-Level Revision Apps GoStudent GoStudent
No ratings yet
11 of The Best A-Level Revision Apps GoStudent GoStudent
1 page
WWW Scribd
No ratings yet
WWW Scribd
2 pages
Class X LP
No ratings yet
Class X LP
3 pages
Writing Workbook Year 4
100% (6)
Writing Workbook Year 4
114 pages
Task The Concept of Virtual Machines Was First Dev...
No ratings yet
Task The Concept of Virtual Machines Was First Dev...
1 page
9702 s21 QP 52-Pages
No ratings yet
9702 s21 QP 52-Pages
3 pages
GKS 2021 University Track Details
No ratings yet
GKS 2021 University Track Details
3 pages
2306 WMA11 - 01 IAL Pure Mathematics P1 October 2023 PDF PDF Mathematics Equations
No ratings yet
2306 WMA11 - 01 IAL Pure Mathematics P1 October 2023 PDF PDF Mathematics Equations
1 page
CS101 - Certificate Final Exam - Attempt Review - Saylor Academy - 1
No ratings yet
CS101 - Certificate Final Exam - Attempt Review - Saylor Academy - 1
1 page
UK Medical Entry To Upload
No ratings yet
UK Medical Entry To Upload
6 pages
Write A C Program To Calculate The Parking Fare ...
No ratings yet
Write A C Program To Calculate The Parking Fare ...
1 page
wfm03 01 Que 2023.01
No ratings yet
wfm03 01 Que 2023.01
32 pages
Year 1 Sci - TB
No ratings yet
Year 1 Sci - TB
160 pages
Advanced Calculus Problem Set
No ratings yet
Advanced Calculus Problem Set
6 pages
Examination Cover Sheet: (To Be Completed by The Examiner)
No ratings yet
Examination Cover Sheet: (To Be Completed by The Examiner)
3 pages
WMA12 01 Que 20210430
No ratings yet
WMA12 01 Que 20210430
32 pages
Florida Go Math Grade 3
86% (14)
Florida Go Math Grade 3
1,246 pages
Screenshot 2025-06-08 at 19.29.19
No ratings yet
Screenshot 2025-06-08 at 19.29.19
1 page
22564-2022 - Ede
No ratings yet
22564-2022 - Ede
4 pages
4BI1 - 1BR - Que - 20190515 Germination Seed
No ratings yet
4BI1 - 1BR - Que - 20190515 Germination Seed
1 page
Learning in A Time of Coronavirus (Responses)
No ratings yet
Learning in A Time of Coronavirus (Responses)
33 pages
Wec13 01 Que 202505281
No ratings yet
Wec13 01 Que 202505281
32 pages
English Typing Practice Resources
No ratings yet
English Typing Practice Resources
1 page
Mathematics QP Grade 8 November 2018 PDF Area Geometry 2
No ratings yet
Mathematics QP Grade 8 November 2018 PDF Area Geometry 2
1 page
WT 2023 My
No ratings yet
WT 2023 My
2 pages
LI TG Intro
No ratings yet
LI TG Intro
44 pages
Quantitative Aptitude Practice Questions
No ratings yet
Quantitative Aptitude Practice Questions
4 pages
B.Tech Exam Schedule Dec 2022
No ratings yet
B.Tech Exam Schedule Dec 2022
2 pages
Testbank & Ebook Social Psychology Goals in Interaction 7th Edition Kenrick SOLUTION MANUAL Solution Manual Instant
No ratings yet
Testbank & Ebook Social Psychology Goals in Interaction 7th Edition Kenrick SOLUTION MANUAL Solution Manual Instant
18 pages
Grade 9 Unit 7 Math Test
88% (8)
Grade 9 Unit 7 Math Test
7 pages
2406 9MA0-01 A Level Pure Mathematics - June 2024 PDF PDF Mathematics Applied Mathematics
No ratings yet
2406 9MA0-01 A Level Pure Mathematics - June 2024 PDF PDF Mathematics Applied Mathematics
6 pages
2.3: Trigonometric Substitution: Integrals Involving X
No ratings yet
2.3: Trigonometric Substitution: Integrals Involving X
1 page
Factors Contributing To Increased Globalisation
No ratings yet
Factors Contributing To Increased Globalisation
18 pages
Relationship Between TP AP and MP Aqa
No ratings yet
Relationship Between TP AP and MP Aqa
2 pages
TPS, MIs, ESS Questions
No ratings yet
TPS, MIs, ESS Questions
2 pages
Myp Year 10 Supply
No ratings yet
Myp Year 10 Supply
5 pages
Investment Concepts & Objectives Module
No ratings yet
Investment Concepts & Objectives Module
11 pages
Effectiveness of Technical Analysis Signals Around
No ratings yet
Effectiveness of Technical Analysis Signals Around
5 pages
ROI and Cost Analysis for Deck Projects
No ratings yet
ROI and Cost Analysis for Deck Projects
13 pages
Cadbury World Service Design Analysis
100% (12)
Cadbury World Service Design Analysis
5 pages
4.0-Set - Forget Vs Confirmation Trades
No ratings yet
4.0-Set - Forget Vs Confirmation Trades
9 pages
Board Composition and Firm Profitability
No ratings yet
Board Composition and Firm Profitability
7 pages
Tutorial 10: Fiscal Policy - A Summing Up: Multiple Choice Questions
100% (1)
Tutorial 10: Fiscal Policy - A Summing Up: Multiple Choice Questions
3 pages
TH Roofing Catalog 2022
No ratings yet
TH Roofing Catalog 2022
15 pages
Rational Pesant vs. Moral Economy - The Conclusion PDF
No ratings yet
Rational Pesant vs. Moral Economy - The Conclusion PDF
1 page
Enquiry Information: Commercial Credit Information Report
No ratings yet
Enquiry Information: Commercial Credit Information Report
7 pages
Electricity Bill Summary for Imran Khan
No ratings yet
Electricity Bill Summary for Imran Khan
2 pages
Tanauan City Development Strategy Report
No ratings yet
Tanauan City Development Strategy Report
12 pages
(251.301.002) 2025, Spring SNU-CBA: Course Resources
No ratings yet
(251.301.002) 2025, Spring SNU-CBA: Course Resources
3 pages
Tender Documents
No ratings yet
Tender Documents
11 pages
Uplift Modeling Techniques Guide
No ratings yet
Uplift Modeling Techniques Guide
4 pages
Statement 42735536498
No ratings yet
Statement 42735536498
1 page
Catalogue Water Tanksss 3000
No ratings yet
Catalogue Water Tanksss 3000
6 pages
Agc-Wsdot Equipment Rental Agreement: 1. General
No ratings yet
Agc-Wsdot Equipment Rental Agreement: 1. General
4 pages
EHV Application Format
No ratings yet
EHV Application Format
2 pages
Consumer Choice and Utility Maximization
No ratings yet
Consumer Choice and Utility Maximization
4 pages
Section A Course Outline of Economic Development
No ratings yet
Section A Course Outline of Economic Development
4 pages
Recount Text Dan Trick Mengerjakan Soal Ujian
No ratings yet
Recount Text Dan Trick Mengerjakan Soal Ujian
12 pages
Lijjat Papad: A Women's Success Story
No ratings yet
Lijjat Papad: A Women's Success Story
23 pages
Mutual Fund Nomination Form Guide
No ratings yet
Mutual Fund Nomination Form Guide
2 pages
ETF Trading Course for Beginners
No ratings yet
ETF Trading Course for Beginners
63 pages
Indian Market Insights: August 2024 Trends
No ratings yet
Indian Market Insights: August 2024 Trends
14 pages
Annual Report 2017-2018
No ratings yet
Annual Report 2017-2018
42 pages
Fomc Blackout Period Calendar
No ratings yet
Fomc Blackout Period Calendar
4 pages
Understanding Public Property Ownership
No ratings yet
Understanding Public Property Ownership
2 pages
Jute Bag Training
No ratings yet
Jute Bag Training
3 pages

Wac12 01 Que 20240123

Uploaded by

Wac12 01 Que 20240123

Uploaded by

Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Number Candidate Number

Pearson Edexcel International Advanced Level

International Advanced Level

You must have: Total Marks

©2024 Pearson Education Ltd.

(ii) Dividend yield

(iv) Price earnings ratio

(Total for Question 1 = 55 marks)

(Total for Question 2 = 55 marks)

TOTAL FOR SECTION A = 110 MARKS

If you answer Question 3, put a cross in the box .

(Total for Question 3 = 30 marks)

(ii) standard price per kg of clay.

(e) Calculate the:

(ii) standard quantity of material to produce one clay tile.

(ii) may be linked (may have an interrelationship).

(Total for Question 4 = 30 marks)

(Total for Question 5 = 30 marks)

(Total for Question 6 = 30 marks)

TOTAL FOR SECTION B = 90 MARKS

TOTAL FOR PAPER = 200 MARKS

International Advanced Level

©2024 Pearson Education Ltd.

60 million shares issued at a

General reserve £2 000 000

Foreign exchange reserve £1 600 000

11% debenture 2028 £20 000 000

14% bank loan £2 400 000

Net profit after interest before tax £3 815 000

Tax on profit £635 000

Interim ordinary dividend paid for the year £150 000

Market price of share £1.60

Dividend per share £0.018 (1.8 pence)

Dividend yield 1.5%

Earnings per ordinary share £0.042 (4.2 pence)

Price / earnings ratio 28 times

Dividend cover 2.1 times

Gearing ratio 39%

Return on capital employed 5.8%

Charge per week for Running costs per week

The following information applies to one new storage warehouse.

TOTAL FOR SECTION A = 110 MARKS

31 December 2022 31 December 2023

TOTAL FOR SECTION B = 90 MARKS

You might also like