MAC2601: PRINCIPLES OF MANAGEMENT
ACCOUNTING
MAY/JUNE 2020 EXAM MEMO
FOR ASSISTANCE CONTACT RALPH
0680779615
, Mac2601 may /june
First paper
Q1 absorption costing
Sales (162*105 000) 17010 000
Cost of sales (13942011)
Opening inventory (10 000*146,22) 1462 200
Direct materials (30 *98000) 2940 000
Direct labour (38*98000) 3724 000
Man overheads (50 *98000) 4900 000
Fixed man overheads(5.50*98000) 539 000
Closing inventory(3000*13565200/108000) (376811)
Gross profit 3067989
Other costs (1287 000)
Selling costs (12*105 000) 1260 000
Admin costs ( 27 000
Net profit 1780989
b)reconciliation of profits
profit under absorption costing method 1780989
c)under /over absorption
applied fixed man overheads (5.50*90 000) 495 000
actual fixed man overheads ( 560 000)
under absorption 65 000
Q2
Total machine hours used =100*550+150*800
=175000hrs
Number of set ups =150
Adventure =550/5=110
Power=800/20= 40
Number of inspections =1100*10+40*40
ACCOUNTING
MAY/JUNE 2020 EXAM MEMO
FOR ASSISTANCE CONTACT RALPH
0680779615
, Mac2601 may /june
First paper
Q1 absorption costing
Sales (162*105 000) 17010 000
Cost of sales (13942011)
Opening inventory (10 000*146,22) 1462 200
Direct materials (30 *98000) 2940 000
Direct labour (38*98000) 3724 000
Man overheads (50 *98000) 4900 000
Fixed man overheads(5.50*98000) 539 000
Closing inventory(3000*13565200/108000) (376811)
Gross profit 3067989
Other costs (1287 000)
Selling costs (12*105 000) 1260 000
Admin costs ( 27 000
Net profit 1780989
b)reconciliation of profits
profit under absorption costing method 1780989
c)under /over absorption
applied fixed man overheads (5.50*90 000) 495 000
actual fixed man overheads ( 560 000)
under absorption 65 000
Q2
Total machine hours used =100*550+150*800
=175000hrs
Number of set ups =150
Adventure =550/5=110
Power=800/20= 40
Number of inspections =1100*10+40*40
