DEPARTMENT OF FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT 200
(FBS 200)
EXAM: 30 NOVEMBER 2021
SUGGESTED SOLUTION
, 2021 FBS 200 EXAM MCQ : SUGGESTED SOLUTION MARKS 13 DISTRACTORS
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
FINANCIAL MANAGEMENT 200
(FBS 200)
EXAM: 30 NOVEMBER 2021
SUGGESTED SOLUTION
, 2021 FBS 200 EXAM MCQ : SUGGESTED SOLUTION MARKS 13 DISTRACTORS
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
