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Bachelor Sajid Iqbal: Managerial Accounting - Final Exam

This document appears to be an exam for a managerial accounting course, as it contains questions about concepts like cost behavior, costing methods, and overhead allocation. It provides instructions for students taking the exam and includes multiple choice and short answer questions testing understanding of key accounting topics. Scores will be determined based on answering questions correctly and adhering to exam policies regarding academic integrity.

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Sajid Iqbal
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87 views

Bachelor Sajid Iqbal: Managerial Accounting - Final Exam

This document appears to be an exam for a managerial accounting course, as it contains questions about concepts like cost behavior, costing methods, and overhead allocation. It provides instructions for students taking the exam and includes multiple choice and short answer questions testing understanding of key accounting topics. Scores will be determined based on answering questions correctly and adhering to exam policies regarding academic integrity.

Uploaded by

Sajid Iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Faculty of Management Science

Student’s Full Name: ………………………….. Father’s Name ………………. Date ..…/……/…..


Student’s ID: ……………………………………………… Session ………………………………….

ACADEMIC YEAR PROGRAM DURATION PROFESSOR NAME


2015 – 2016 Bachelor 2 Hours Sajid Iqbal

SUBJECT/MODULE: Managerial Accounting – Final Exam


Marks Obtained Remarks
Question 1:05 Marks
Question 2:05 Marks
Question 3:20 Marks
Question 4:30 Marks

Total: 60 Points

BREAKDOWN:
Particulars Marks Obtained Remarks
Class Participation
Mid-Term Examination
Final Examination
Total

ATTESTATION:
Lecturer’s Signature ………………………………….
Invigilators:
(a) Signature..................................................................
(b) Signature …………………………………….……

INSTRUCTIONS AND REMINDERS


1. Please attempt all the questions.
2. All the candidates are required to comply with the university’s examination policies and regulations.
3. Any academic misconduct during the examination (such as plagiarism, cheating, or collusion with
another candidate) will be expelled from the examination room and the examination will be marked
with an automatic zero.
4. Make sure you have 04 pages including this page.
5. All answers should be written in the spaces provided in the exam paper.
6. Students should not carry with them any paper, text, or other material bearing any information relevant
to the exam unless it is an open book exam or certain documents that have been authorized by the
lecturer or invigilator.
7. All mobile phones should be switched off during the examination.
8. The answers for short questions shouldn’t be more than a paragraph.
9. The answers for long questions shouldn’t be less than 1000 words.
10. Case studies and numerical problems should be answered as per instructions or whatsoever deemed
appropriate.

Q1: Select the best available option;


 No points would be awarded to over writing or using any kind of removers
 Only circle the right option

1. Managerial accounting provides information for managers of an organization who direct and control its
operations.
 TRUE
 FALSE

2. Managerial accounting provides information for external users who take financial decisions.
 TRUE
 FALSE

3. Finance manager salary is an example of manufacturing overheads.


 TRUE
 FALSE

4. Process costing is used for a single product is produced on a continious basis over long period of time.
 TRUE
 FALSE

5. Partially completed units are called physical units, under process costing;
 TRUE
 FALSE

Q2: Choose the Best option;

1. Cost accounting provides data for managerial__________________;


a. Decision Making
b. Recruitment
c. Retrenchment
d. None of the above

2. The method of costing used in an oil refinery is ____________________ costing;


a. Multiple
b. Batch
c. Process
d. Job

3. The cost apportionment in process costing perform between following units:


a. Output and opening work in progress
b. Output and input
c. Output and closing work in progress
d. Opening and closing work in progess

4. Sunk costs are __________________ for decision-making;


a. Irrelevant
b. Relevant
c. Useful
d. None of these

5. Zing manufacturing assigns overheads based on direct labor dollars. The company incurred the following for
job A24: $200 for direct materials and 30 hours of direct labor. Employees are paid $12 per hour. The
predetermined overhead rate was calculated at $1.10 based on direct labor dollars. Estimated manufacturing
overheads for the year was $38,000. The company expected to complete 100 jobs during the year. How much
is the total cost of a job A24?
a. 396
b. 200
c. 956
d. None of the above

Short Question;
 Attempt any Four of the following question;
 No marks will be awarded for poor presentation of questions
 Only university approved calculators are allowed to use, using smart – phones can lead to the cancellation
of exam script

1. Briefly differentiates between physical and equivalent units?


2. Define cost behavior of total variable cost and fixed cost per unit with graphs?
3. Briefly explain the differences between job order and process costing?
4. Differentiate between sunk cost and opportunity cost, with at least two practical examples?
5. Briefly explain differential cost and revenues, with at least one example?

Long Questions;
All questions are compulsory in this section

Q1: The Mahoney Company has two producing departments: assembly and finishing. The company has been
using
  a plantwide predetermined overhead rate based on direct labor
Assembly hours. The following
Finishing Total estimates were made
for the current year:
Manufacturing Overhead $200,000 $100,000 $300,000

Direct labor hours 40,000 35,000 75,000

Machine hours 5,000 16,000 21,000

Mahoney started and completed Job 1512 during the year. The job-order cost sheet indicated the following:

Materials Requisitioned $18,000

Direct labor cost 16,000

Direct labor hours:  

     Assembly 1,700 Hours

     Finishing 1,300 Hours

Machine Hours  

     Assembly 1,000 Hours

     Finishing 700 Hours

A total of 2,000 units were produced on Job 1512.

Required:

1. Assume that Mahoney uses a plantwide predetermined overhead based on direct labor hours. Calculate the
total cost and the unit cost for each of the 2,000 units produced by Job 1512.

2. Assume that Mahoney uses separate departmental overhead rates based upon direct labor hours for assembly
and machine hours for finishing. Calculate the total cost and the unit cost for each of the 2,000 units produced
by Job 1512.

Q2: Smith Company reported the following activity in the Assembly Department for the;

Percentage completed

Units Materials Conversion

Work in process, June 01 300 40% 20%

Units started into production in June 6,000

Units completed and transferred out 5,400

Work in process, June 30 900 60% 30%

Beginning Work in Process Inventory: 300 units


Materials: 40% complete $6,119
Conversion: 20% complete $3,920

Costs added to production in June


Materials cost $118,621
Conversion cost $81,130

Ending Work in Process Inventory: 900 units


Materials: 60% complete
Conversion: 30% complete

Required: Under process costing concept, perform cost apportionment between closing work in process units
and finished goods inventory by using equivalent units concept?

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