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CIMA BA2 Practice Test Chapter 8- Integrated accounting system
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CIMA BA2 Practice Test Chapter 8- Integrated accounting system
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BA 2 - Fundamentals of Management AccountingPractice questions
Integrated accounting systems
Chapter eight
BA 2 - Integrated accounting systems. Quantia Learning
,01. Gross wages incurred in department 1 in June were $54,000. The wages analysis shows
the following summary breakdown of the gross pay:
Paid to direct Paid to
labour indirect labour
$ $
Ordinary time 25,185 11,900
Overtime :
basic pay 5,440 3,500
premium 1,360 875
Shift allowance 2,700 1,360
Sick pay 1,380 300
36,065 17,935
What is the direct wages cost for department 1 in June?
A. $25,185
B. $30,625
C. $34,685
D. $36,065
02. FGH has two production departments, A and B. Workers in department A are considered
direct workers and workers in department B are considered indirect workers.
In the last week department A worked 40 hours of overtime, 30 at the specific request of a
customer and the remaining at the request of management. Department B worked 15 hours of
overtime, 5 of which were at the specific request of a customer.
All workers in department A are paid at a rate of $12 per hour and workers in department B are
paid at a rate of $10 per hour. All overtime is paid at time and a half.
Calculate the total overtime pay for the week, split between direct and indirect cost.
Direct overtime cost $ _________
Indirect overtime cost $ ________
Total overtime cost $ ________
BA 2 - Integrated accounting systems. Quantia Learning
, 03. An entity operates an integrated accounting system. It is issuing $40,000 worth of direct
materials to production.
In an integrated accounting system, the accounting entries to record an issue of direct materials
to production would be:
Debit Credit
A. Work in progress control account Material control account
B. Finished goods account Material control account
C. Material control account Work in progress control account
D. Cost of sales account Work in progress control account
04. During a period $35,750 was incurred for indirect labour.
In an integrated accounting system, the accounting entries to record the indirect labour cost
incurred in a period would be:
Debit Credit
A. Wages control account Overhead control account
B. WIP control account Wages control account
C. Overhead control account Wages control account
D. Wages control account WIP control account
05. In an integrated accounting system, the accounting entries required when a company
absorbs production overhead would be:
Debit Credit
A. Work in progress control account Overhead control account
B. Overhead control account Work in progress control account
BA 2 - Integrated accounting systems. Quantia Learning
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