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PAPER NO - 500 - Costing ND Hexcoce

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7 views1 page

PAPER NO - 500 - Costing ND Hexcoce

Uploaded by

Tarusenga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PAPER NO: 500/15/S09 - COST AND MANAGEMENT ACCOUNTING 1

QUESTION 1
a) The following information relates to inventory control items:
Average usage 200 units per day
Minimum usage 120 units per day
Maximum usage 260 units per day
Lead time 40-52 days
E:O.Q 8 000 units
Calculate:
i) Re-order level (3 marks)
ii) Maximum stock level (3 marks)
iii) Minimum stock level (3 marks)
iv) Average stock level (3 marks)
b) A worker is paid by differential piecework. The scheme is as follows:
Up to 100 units per day $1 per unit
101 to 140 units per day $1,20 per unit
141 to 160 units per day $1,30 per unit
161 to 200 units per day $1,40 per unit
Calculate his earnings on a day when he worked and produced:
i). 136 units (2 marks)
ii) 166 units (2 marks)
iii) 118 units (2 marks)
iv) 188 units (2 marksa)
QUESTION 2
a) Define a limiting factor as it relates to manufacturing activities. (1 mark)
b) Identify any four (4) limiting factors for a manufacturing company. (4 marks)
c) The following details are available regarding three products:
Product X Y Z
Selling price $200 $300 $400
Direct material ($4 $20 $112 $90
per kg)
Direct labour ($8 $80 $44 $120
per hour)
Variable overheads $40 $22 $60
2

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