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mac2601 exam pack
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- University Of South Africa
Exam of 402 pages for the course Principles of Management Accounting at University of South Africa (mac2601 exam pack)
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MAC2601EXAM
PACK 2022
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MAC2601
January/February 2022
QUESTION 1 – (20 Marks) (24 Minutes)
THIS QUESTION CONSISTS OF TEN (10) MULTIPLE-CHOICE QUESTIONS OF
TWO (2) MARKS PER QUESTION. FOR EACH QUESTION, SIMPLY WRITE DOWN
THE NUMBER OF THE QUESTION TOGETHER WITH THE CORRECT OPTION (a,
b, c OR d) IN YOUR ANSWER SCRIPT.
Use the information provided below to answer questions 1 to 4:
Mamelodi (Pty) Ltd uses a perpetual inventory system and applies the weighted
average method for the valuation of inventory. The following information about direct
materials inventory relates to the month ended 31 December 2021:
Date Transaction
03/12/2021 Issue of 250 units
08/12/2021 Purchase of 300 units at a total cost of R33 000
15/12/2021 Issue of 190 units
16/12/2021 Returns from factory to store: 40 excess units from goods issued
on 15 December. Returned units are in good condition.
21/12/2021 Purchase of 100 units at a total cost of R9 000
25/12/2021 Issue of 240 units
The opening balance of direct materials inventory on 1 December 2021 was 300 units
at a total value of R31 000.
(Note: Small rounding differences in inventory balances may be applicable.)
1. The value of direct materials inventory after the units purchased on 8 December
2021 was ________.
(a) R20 900
(b) R38 167
(c) R33 000
(d) R31 000
2. The value of direct materials inventory after the returns on 16 December 2021
was ________.
(a) R17 448
(b) R20 720
(c) R4 362
(d) R21 810
3. The value of direct materials inventory after the purchase of 100 units on
21 December 2021 was ________.
(a) R30 810
(b) R21 810
(c) R27 000
(d) R9 000
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MAC2601
January/February 2022
4. The value of direct materials closing inventory as at 31 December 2021 amounted
to ________.
(a) R24 648
(b) R6 162
(c) R5 400
(d) R30 810
Use the information provided below to answer questions 5 and 6:
Metsing (Pty) Ltd manufactures and sells one product. The following is an extract from
the budgeted information for the financial year ending on 31 December 2022:
Number of units to be manufactured and sold 10 000
Selling price per unit R14,00
Variable selling cost per unit R0,60
Variable production cost per unit R5,60
Total fixed manufacturing cost R32 000
5. What is Metsing (Pty) Ltd's budgeted break-even point in units for 2022?
(a) 2 286 units
(b) 4 103 units
(c) 5 714 units
(d) 5 932 units
6. What is Metsing (Pty) Ltd's budgeted margin of safety ratio for 2022?
(a) 41%
(b) 42%
(c) 59%
(b) 62%
7. Which costing system is the most appropriate for a manufacturing company that
when referring to the market it sell to a particular client?
(a) Joint costing.
(b) Activity-Based-Costing (ABC).
(c) Job costing.
(d) Process costing.
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8. What are some of the reasons why it is important to know the unit cost of a
product?
(a) To be able to value inventory, the analysis of financial statements, and set
standard costs.
(b) To be able to determine the amount of variable costs incurred, prepare a bank
reconciliation, and set selling prices.
(c) To be able to value inventory, prepare a bank reconciliation, and set selling
prices.
(d) To be able to value inventory, prepare a budget, and set selling prices or prepare
quotes.
9. Victory (Pty) Ltd uses process costing. The opening work-in-progress (WIP) was
55% complete at the beginning of the current period, new units were put into
production in the current period and closing WIP is 45% complete. Normal loss is
4% of units that have passed or reached the wastage point and this normal loss
takes place when the process is 60% complete. The company uses the First-in-
first-out (FIFO) method.
Which units were subject to the normal loss in the current period?
(a) Opening WIP and new units put into production.
(b) Opening WIP, new units put into production and closing WIP.
(c) Opening WIP and closing WIP.
(d) New units put into production and closing WIP.
10. Consider the following statements regarding normal losses in process costing:
i) They are also known as uncontrollable losses.
ii) One of the examples may be wastage due to employee carelessness.
iii) They are avoidable in the manufacturing process.
iv) They do not indicate that a process is ineffective.
Which combination of statements is correct in terms of normal losses in a process
costing system?
(a) Statements i and iii
(b) Statements i and iv
(c) Statements i, ii and iii
(d) Statements iii and iv
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