Unlock exam success with our comprehensive Accounting past papers and solutions! These expertly crafted resources are tailored to help you understand key concepts, practice real exam scenarios, and boost your confidence. Perfect for mastering complex topics and achieving top marks!
LABOUR
1. Dollypops - cost of direct labour allocated to WIP C 2.0 A: R132 000 = 144 000 - 12 000
40 x 52 x 75 = R156 000 B: R144 000 = just the hour worked
D: R187 200 = 48 x 52 x 75
Alternative:
40 x 48 x 75 = R144 000
40 x 4 x 75 = R12 000
R156 000
OVERHEADS
1. Blindside - fixed overheads per unit C 2.0 A: R145.80 = R162 x 90%
Work rate: (R58..9)= R65.00 B: R162.00 = just used one hour
Time worked per unit: R130.00 / R65.00 = 2 hours D: R360.00 = R130 / R58.50 x R162
Fixed overheads per unit: R162 x 2 = R324.00
Note: Marks were awarded as follows:
• R360.00
2. BB - correction of over-recovery D 2.0 A: Debit: R521 140
Allocated/Recovered fixed manufacturing overheads: 10.44 x 250 000 = R2 610 000 B: Credit: R521 140
Less: Actual fixed manufacturing overheads R3 131 140 C: Debit: R1 042 280
Therefore there is an under-recovery R521 140
Correction of error: 521 140 x 2 = CREDIT R1 042 280
To reverse the initial debit of R521 140 and raise a credit of R521 140, you will have to credit the fixed manufacturing
overhead account with R1 042 280
JOINT & BY PRODUCTS
1. HoneyBuns - gross profit of Grade A honey B 2.0 A: R2 199 600 = [(6 000 000 – 1 320 000) x .47]
Total sales: R6 000 000 + R7 700 000 + R2 943 000 + R561 000 R17 204 000 C: R3 180 000 = (6 000 000 x .53)
Total costs: R9 118 120 D: R3 977 870.26 = (used joint cost only as total cost)
Total joint costs R5 798 120 R5 798 120
Total further processing costs R1 320 000 + R900 000 + R630 000 + R470 00 R3 320 000
Total gross profit: R8 085 880
Gross profit percentage: R8 085 880 / R17 204 000 47%
Gross profit of Grade A honey R6 000 000 x 47% R2 820 000
Note: Marks were awarded as follows:
•R2 199 600
2. Choose the false statement D 1.0
The net realisable value at spilt off point method uses the sellling price at split off less further processing
costs to split the joint cost between the joint products. R/W
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