Chapter 6习题_F5_ACCA英国注册会计师

Fill in the blanks.

Most of the decisions considered in this chapter involve calculating …………………….. obtained from various options after identifying ……………………….. . They always involve …………………………. issues, which depend on the precise situation described.

A company uses its direct labour workforce to make a product for which the sales price and unit cost are as follows.

$

Selling price 80

Direct materials 10

Direct labour (2 hours) 20

Variable overheads (2 hours) 4

Fixed overheads (2 hours) 30

The workforce is operating at full capacity and it is not possible to obtain any additional labour hours in the near future. A customer has asked the company to perform a special job that would require 20 hours of direct labour time.

What would be the relevant cost of diverting labour from its existing work to perform the special job for the customer?

This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking.

Appler is considering the relevant cash flows involved in a short-term decision. An important client has asked for the minimum price for the processing of a compound. The compound involves the following:

Material A: Appler needs 500 kg of material for the compound but has 200 kg in stock present. The stock items were bought 3 months ago for $5/kg but have suffered 10% shrinkage since that date. Material A is not regularly used in the business and would have to be disposed of at a cost to Appler of $400 in total. The current purchase price of material A is $6.25/kg.

Material B: Appler needs 800 kg of material B and has this in stock as it is regularly needed. The stock was bought 2 months ago for $4/kg although it can be bought now at $3.75/kg due to its seasonal nature.

Processing energy costs would be $200 and the supervisor says he would allocate $150 of his weekly salary to the job in the company’s job costing system.

Based upon the scenario information, what is the total cost of material A and B to be built in to the minimum price calculation?

This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking.

Appler is considering the relevant cash flows involved in a short-term decision. An important client has asked for the minimum price for the processing of a compound. The compound involves the following:

Material A: Appler needs 500 kg of material for the compound but has 200 kg in stock present. The stock items were bought 3 months ago for $5/kg but have suffered 10% shrinkage since that date. Material A is not regularly used in the business and would have to be disposed of at a cost to Appler of $400 in total. The current purchase price of material A is $6.25/kg.

Material B: Appler needs 800 kg of material B and has this in stock as it is regularly needed. The stock was bought 2 months ago for $4/kg although it can be bought now at $3.75/kg due to its seasonal nature.

Processing energy costs would be $200 and the supervisor says he would allocate $150 of his weekly salary to the job in the company’s job costing system.

Based upon the scenario information, what is the total cost for processing and supervision to be included in the minimum price calculation?

材料全屏

AB produces a consumable compound X, used in the preliminary stage of a technical process that it installs in customers' factories worldwide. An overseas competitor, CD, offering an alternative process which uses the same preliminary stage, has developed a new compound, Y, for that stage which is both cheaper in its ingredients and more effective than X.

At present, CD is offering Y only in its own national market, but it is expected that it will not be long before it extends its sales overseas. Both X and Y are also sold separately to users of the technical process as a replacement for the original compound that eventually loses its strength. This replacement demand amounts to 60% of total demand for X and would do so for Y. CD is selling Y at the same price as X ($64.08 per kg).

AB discovers that it would take 20 weeks to set up a production facility to manufacture Y at an incremental capital cost of $3,500 and the comparative manufacturing costs of X and Y would be:

X Y

$ per kg $ per kg

Direct materials 17.33 4.01

Direct labour 7.36 2.85

24.69 6.86

AB normally absorbs departmental overhead at 200% of direct labour: 30% of this departmental overhead is variable directly with direct labour cost. Selling and administration overhead is absorbed at one half of departmental overhead.

The current sales of X average 74 kg per week and this level (whether of X or of Y if it were produced) is not expected to change over the next year. Because the direct materials for X are highly specialised, AB has always had to keep large inventories in order to obtain supplies. At present, these amount to $44,800 at cost. Its inventory of finished X is $51,900 at full cost. Unfortunately, neither X nor its raw materials have any resale value whatsoever: in fact, it would cost $0.30 per kg to dispose of them.

Over the next three months AB is not normally busy and, in order to avoid laying off staff, has an arrangement with the trade union whereby it pays its factory operators at 65% of their normal rate of pay for the period while they do non-production work. AB assesses that it could process all its relevant direct materials into X in that period, if necessary.

There are two main options open to AB.

(i) To continue to sell X until all its inventories of X (both of direct materials and of finished inventory) are exhausted, and then start sales of Y immediately afterwards.

(ii) To start sales of Y as soon as possible and then to dispose of any remaining inventories of X and/or its raw materials.

28

【论述题】

Recommend, with supporting calculations, which of the two main courses of action suggested is the more advantageous from a purely cost and financial point of view.

Identify three major non-financial factors that AB would need to consider in making its eventual decision as to what to do.

Suggest one other course of action that AB might follow, explaining what you consider to be its merits and demerits when compared with your answer at (a) above.

In order to utilise some spare capacity, K is preparing a quotation for a special order which requires 2,000 kgs of material J.

K has 800 kgs of material J in inventory (original cost $7.00 per kg). Material J is used in the company’s main product L. Each unit of L uses 5 kgs of material J and, based on an input value of $7.00 per kg of J, each unit of L yields a contribution of $10.00.

The resale value of material J is $5.50 per kg. The present replacement price of material J is $8.00 per kg. Material J is readily available in the market.

What is the relevant cost of the 2,000 kgs of material J to be included in the quotation?

A

$11,000

B

$14,000

C

$16,000

D

$18,000

A company is calculating the relevant cost of the material to be used on a particular contract. The contract requires 4,200 kgs of material H and this can be bought for $6.30 per kg. The company bought 10,000 kgs of material H some time ago when it paid $4.50 per kg. Currently 3,700 kgs of this remains in inventory. The inventory of material H could be sold for $3.20 per kg.

The company has no other use for material H other than on this contract, but it could modify it at a cost of $3.70 per kg and use it as a substitute for material J. Material J is regularly used by the company and can be bought for $7.50 per kg.

What is the relevant cost of the material for the contract?

A

$17,210

B

$19,800

C

$26,460

D

$30,900

Ace Limited is considering a new project that will require the use of a currently idle machine. The machine has a current book value of $12,000 and a potential disposal value of $10,500 (before $200 disposal costs) and hence has been under depreciated by $1,500 over its life to date. If the machine is to be fit for purpose on the new project it will have to be relocated at a cost of $500 and refitted at a further cost of $800.

What is the relevant cost of using the machine on the new project?

A

$9,000

B

$10,300

C

$11,600

D

$13,300

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