MAC3701 LATEST EXAM
PACK 2025
QUESTIONS AND
ANSWERS
For assistance contact
Email:
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
CONTENT
Page
1 QUESTIONS AND SOLUTIONS ............................................................................................... 4
1.1 QUESTION 1 - SODA LTD ....................................................................................................... 4
SUGGESTED SOLUTION ........................................................................................................ 6
1.2 QUESTION 2 - SOAPS LTD ................................................................................................... 10
SUGGESTED SOLUTION ...................................................................................................... 11
1.3 QUESTION 3 - DELICIOUS CEREALS (PTY) LTD ................................................................ 15
SUGGESTED SOLUTION ...................................................................................................... 17
1.4 QUESTION 4 - DAZZLE LTD ................................................................................................. 21
SUGGESTED SOLUTION ...................................................................................................... 22
1.5 QUESTION 5 - BLUE BAGS (PTY) LTD ................................................................................ 24
SUGGESTED SOLUTION ...................................................................................................... 25
1.6 QUESTION 6 - DAISY CC ...................................................................................................... 30
SUGGESTED SOLUTION ...................................................................................................... 31
1.7 QUESTION 7 - BRITE NITE (PTY) LTD ................................................................................. 35
SUGGESTED SOLUTION ...................................................................................................... 36
1.8 QUESTION 8 - SWIFT SAILING SHIP MANUFACTURERS .................................................. 39
SUGGESTED SOLUTION ...................................................................................................... 40
1.9 QUESTION 9 - JUNIOR SPORTS LTD .................................................................................. 42
SUGGESTED SOLUTION ...................................................................................................... 44
1.10 QUESTION 10 - BEANCINO (PTY) LTD ................................................................................ 51
SUGGESTED SOLUTION ...................................................................................................... 55
1.11 QUESTION 11 - BIG FIVE LTD .............................................................................................. 59
SUGGESTED SOLUTION ...................................................................................................... 61
1.12 QUESTION 12 - MR ZENZELE ............................................................................................... 64
SUGGESTED SOLUTION ...................................................................................................... 65
1.13 QUESTION 13 - MAYA (PTY) LTD ......................................................................................... 67
SUGGESTED SOLUTION ...................................................................................................... 69
1.14 QUESTION 14 - JJ BEVERAGES LTD .................................................................................. 73
SUGGESTED SOLUTION ...................................................................................................... 75
1.15 QUESTION 15 - IYOGATHI LTD ............................................................................................ 79
SUGGESTED SOLUTION ...................................................................................................... 80
2
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
1.16 QUESTION 16 - HIGH RISE LTD ........................................................................................... 83
SUGGESTED SOLUTION ...................................................................................................... 85
1.17 QUESTION 17 – TENNIS BALL (PTY) LTD ........................................................................... 88
SUGGESTED SOLUTION ...................................................................................................... 90
Note
The questions must be used to improve your examination technique and topic understanding.
To obtain the most benefit from the questions you must physically do the question as if you are under
examination conditions (including time limitations) and then compare your solution to the given
solution. This process will enable you to identify where you went wrong and understand why you went
wrong.
3
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
1 QUESTIONS AND SOLUTIONS
The suggested solution to each question is provided directly after the specific question’s required part.
1.1 QUESTION 1 - SODA LTD 26 Marks
A South African company, Soda Ltd, currently makes use of a standard absorption costing system
for planning and control purposes.
This costing system is now under review by the newly appointed cost accountant. He has started
preparing a statement that reconciles the budgeted and actual profit of Soda Ltd based on the
information supplied below. He needs your help however to obtain the missing figures.
The following budget data relate to the production of Product SoDa for November. The product gets
manufactured by mixing two types of raw materials, So and Da.
Cost
Raw material input: So (0,4kg @ R6/kg) R2,40
Raw material input: Da (0,6kg @ R16/kg) R9,60
Raw material cost per kg input R12,00
Yield 96%
Raw materials cost per kg output R12,50
Fixed manufacturing overhead per kg of output R0,40
Total standard cost per kg of output R12,90
Budget data for product SoDa for the period is detailed below:
Sales 72 000kg
Production 70 000kg
SoDa opening inventory (valued at R25 800) 2 000kg
Selling price per kg R22
Fixed production overheads R28 000
The fixed production overhead absorption rate is based on the budgeted number of kilograms produced.
All inventories are valued at standard cost.
Actual data for product SoDa for the period was as follows:
Sales 71 000kg
Production 69 000kg
Selling price per kg R23,00
Fixed production overheads incurred R27 800
Purchase cost per kg of raw material So R6,50
Purchase cost per kg of raw material Da R15,80
Input of raw material So 29 900kg
Input of raw material Da 40 100kg
4
PACK 2025
QUESTIONS AND
ANSWERS
For assistance contact
Email:
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
CONTENT
Page
1 QUESTIONS AND SOLUTIONS ............................................................................................... 4
1.1 QUESTION 1 - SODA LTD ....................................................................................................... 4
SUGGESTED SOLUTION ........................................................................................................ 6
1.2 QUESTION 2 - SOAPS LTD ................................................................................................... 10
SUGGESTED SOLUTION ...................................................................................................... 11
1.3 QUESTION 3 - DELICIOUS CEREALS (PTY) LTD ................................................................ 15
SUGGESTED SOLUTION ...................................................................................................... 17
1.4 QUESTION 4 - DAZZLE LTD ................................................................................................. 21
SUGGESTED SOLUTION ...................................................................................................... 22
1.5 QUESTION 5 - BLUE BAGS (PTY) LTD ................................................................................ 24
SUGGESTED SOLUTION ...................................................................................................... 25
1.6 QUESTION 6 - DAISY CC ...................................................................................................... 30
SUGGESTED SOLUTION ...................................................................................................... 31
1.7 QUESTION 7 - BRITE NITE (PTY) LTD ................................................................................. 35
SUGGESTED SOLUTION ...................................................................................................... 36
1.8 QUESTION 8 - SWIFT SAILING SHIP MANUFACTURERS .................................................. 39
SUGGESTED SOLUTION ...................................................................................................... 40
1.9 QUESTION 9 - JUNIOR SPORTS LTD .................................................................................. 42
SUGGESTED SOLUTION ...................................................................................................... 44
1.10 QUESTION 10 - BEANCINO (PTY) LTD ................................................................................ 51
SUGGESTED SOLUTION ...................................................................................................... 55
1.11 QUESTION 11 - BIG FIVE LTD .............................................................................................. 59
SUGGESTED SOLUTION ...................................................................................................... 61
1.12 QUESTION 12 - MR ZENZELE ............................................................................................... 64
SUGGESTED SOLUTION ...................................................................................................... 65
1.13 QUESTION 13 - MAYA (PTY) LTD ......................................................................................... 67
SUGGESTED SOLUTION ...................................................................................................... 69
1.14 QUESTION 14 - JJ BEVERAGES LTD .................................................................................. 73
SUGGESTED SOLUTION ...................................................................................................... 75
1.15 QUESTION 15 - IYOGATHI LTD ............................................................................................ 79
SUGGESTED SOLUTION ...................................................................................................... 80
2
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
1.16 QUESTION 16 - HIGH RISE LTD ........................................................................................... 83
SUGGESTED SOLUTION ...................................................................................................... 85
1.17 QUESTION 17 – TENNIS BALL (PTY) LTD ........................................................................... 88
SUGGESTED SOLUTION ...................................................................................................... 90
Note
The questions must be used to improve your examination technique and topic understanding.
To obtain the most benefit from the questions you must physically do the question as if you are under
examination conditions (including time limitations) and then compare your solution to the given
solution. This process will enable you to identify where you went wrong and understand why you went
wrong.
3
, lOMoARcPSD|31863004
MAC3701/Question bank/1/2017
1 QUESTIONS AND SOLUTIONS
The suggested solution to each question is provided directly after the specific question’s required part.
1.1 QUESTION 1 - SODA LTD 26 Marks
A South African company, Soda Ltd, currently makes use of a standard absorption costing system
for planning and control purposes.
This costing system is now under review by the newly appointed cost accountant. He has started
preparing a statement that reconciles the budgeted and actual profit of Soda Ltd based on the
information supplied below. He needs your help however to obtain the missing figures.
The following budget data relate to the production of Product SoDa for November. The product gets
manufactured by mixing two types of raw materials, So and Da.
Cost
Raw material input: So (0,4kg @ R6/kg) R2,40
Raw material input: Da (0,6kg @ R16/kg) R9,60
Raw material cost per kg input R12,00
Yield 96%
Raw materials cost per kg output R12,50
Fixed manufacturing overhead per kg of output R0,40
Total standard cost per kg of output R12,90
Budget data for product SoDa for the period is detailed below:
Sales 72 000kg
Production 70 000kg
SoDa opening inventory (valued at R25 800) 2 000kg
Selling price per kg R22
Fixed production overheads R28 000
The fixed production overhead absorption rate is based on the budgeted number of kilograms produced.
All inventories are valued at standard cost.
Actual data for product SoDa for the period was as follows:
Sales 71 000kg
Production 69 000kg
Selling price per kg R23,00
Fixed production overheads incurred R27 800
Purchase cost per kg of raw material So R6,50
Purchase cost per kg of raw material Da R15,80
Input of raw material So 29 900kg
Input of raw material Da 40 100kg
4
