Question Tag: Cost Accounting

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FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2

Identifies costs included in inventory valuation under IAS 2.

Question

According to IAS 2 on inventories, which of the following costs should be included in valuing the inventories of a manufacturing company?
A. Carriage inwards
B. Carriage outwards
C. General administrative overheads
D. Depreciation of land and building
E. Discount allowed

Answer

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Tags: Cost Accounting, IAS 2, Inventory Valuation, Manufacturing Costs
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: MAY 2014

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

You are required to record the above transactions in the inventory ledger and determine the value of the inventory balance at the end of June 2015 using:
a. First-in-First-out pricing method. (10 Marks)
b. Weighted average pricing method. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

Question

Fred Manufacturing Enterprise purchased equipment for N150,000. The equipment was transported at a cost of N15,000 and installed at a cost of N7,500. The employees were trained in the use of the equipment at a cost of N50,000.

At what cost will the equipment be recognised in the books of account?

A. N150,000
B. N157,500
C. N165,000
D. N172,500
E. N222,500

Answer

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Tags: Accounting principles, Asset Valuation, Cost Accounting, Equipment
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2013

MI – May 2018 – L1 – SA – Q9 – Cost Classifications

Classification of period costs.

Question

Which of the following may NOT be classified as a period cost?
A. Depreciation
B. Consumables
C. Vehicle Insurance
D. Rent
E. Administrative Salaries

Answer

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Tags: Cost Accounting, Period Costs
Level: Level 1

Topic: Cost Classifications
Series: MAY 2018

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

Question

Which of the following is NOT a function of the Cost Accountant?
A. Advising management on cost control
B. Preparing budgets
C. Purchasing materials with the cheapest costs
D. Compiling cost of production
E. Allocating indirect expenses to manufactured products

Answer

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Tags: Cost Accounting, Functions, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2018

MI – Nov 2023 – L1 – SB – Q1 – Costing Methods

Create a stores ledger using the weighted average method based on given inventory transactions.

Question

The stores data of ABC Limited for the month of July is as follows:

Required:
Prepare the store ledger account in tabular form using the weighted Average Price Method, showing daily balances as a memorandum on the table. Show workings

Answer

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Tags: Cost Accounting, Inventory Management, Stores Ledger, Weighted Average Method
Level: Level 1

Topic: Costing Methods
Series: NOV 2023

MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements

Identifying the correct journal entry for issuing direct materials to production.

Question

Which of the following journal entries is correct for the issuance of direct materials to production?

DR	CR
A. Materials	Work in progress
B. Work in progress	Materials
C. Work in progress	Accounts payable
D. Materials	Accounts payable
E. Materials	Accounts Receivable

Answer

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Tags: Cost Accounting, Direct Materials, Journal Entries
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2023

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

Question

Explain the various types of accounting and their respective roles in providing relevant information to different users of financial information.

Answer

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Tags: Cost Accounting, Financial Accounting, Management Accounting, Tax Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2023

MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting

This question asks for the basic objective of cost accounting.

Question

The basic objective of cost accounting is:
A. Financial audit
B. Cost ascertainment
C. Cost allocation
D. Profit analysis
E. Cost production

Answer

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Tags: Cost Accounting, Cost Ascertainment, Objectives
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2023

MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements

Perform cost analysis for a small manufacturer with given data.

Question

Mr. Kogberegbe, a small manufacturer, has approached you as a Cost Accountant with the following data:

Sales Forecast

Additional information:
• Purchases are 45% of selling price and are paid for two months after
delivery. Delivery is in the month of sales.
• Collections from sales are 25% in the month of sales less 2% cash discount,
55%in the month after salesand the balance in the third month after sales.
• Production overheads are paid in the same month in which they are
incurred and this amounts to N1,240,000 per month. Included in
this amountaredepreciationof N70,000 andprepaidrent of N500,000.
• Other expenses are paid for in arrears and these amount to N620,000 per
month.
• New plant of N540,000 will be bought in the month of January and
installed at acostof N75,000 the following month.
• Bank opening balance as at August 2016 shows an overdraft of
N2,150,000 and interest is charged at 3% of drawn down balance. I g n o r e
other bank charges

Required:
Prepare a cash budget for Mr. Kogberegbe’s business for the three months i.e,
September to November, 2016. Calculate the values to the nearest naira and show
all your workings.

Answer

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Tags: Cost Accounting, Cost Analysis, Small Business
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAY 2016

FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2

Identifies costs included in inventory valuation under IAS 2.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, IAS 2, Inventory Valuation, Manufacturing Costs
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: MAY 2014

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

(Total 20 Marks)

Answer

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Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

Question

At what cost will the equipment be recognised in the books of account?

A. N150,000
B. N157,500
C. N165,000
D. N172,500
E. N222,500

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Asset Valuation, Cost Accounting, Equipment
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2013

MI – May 2018 – L1 – SA – Q9 – Cost Classifications

Classification of period costs.

Question

Which of the following may NOT be classified as a period cost?
A. Depreciation
B. Consumables
C. Vehicle Insurance
D. Rent
E. Administrative Salaries

Answer

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Tags: Cost Accounting, Period Costs
Level: Level 1

Topic: Cost Classifications
Series: MAY 2018

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

Question

Answer

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Tags: Cost Accounting, Functions, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2018

MI – Nov 2023 – L1 – SB – Q1 – Costing Methods

Create a stores ledger using the weighted average method based on given inventory transactions.

Question

The stores data of ABC Limited for the month of July is as follows:

Required:
Prepare the store ledger account in tabular form using the weighted Average Price Method, showing daily balances as a memorandum on the table. Show workings

Answer

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Tags: Cost Accounting, Inventory Management, Stores Ledger, Weighted Average Method
Level: Level 1

Topic: Costing Methods
Series: NOV 2023

MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements

Identifying the correct journal entry for issuing direct materials to production.

Question

Which of the following journal entries is correct for the issuance of direct materials to production?

DR	CR
A. Materials	Work in progress
B. Work in progress	Materials
C. Work in progress	Accounts payable
D. Materials	Accounts payable
E. Materials	Accounts Receivable

Answer

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Tags: Cost Accounting, Direct Materials, Journal Entries
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2023

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

Question

Explain the various types of accounting and their respective roles in providing relevant information to different users of financial information.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Financial Accounting, Management Accounting, Tax Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2023

MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting

This question asks for the basic objective of cost accounting.

Question

The basic objective of cost accounting is:
A. Financial audit
B. Cost ascertainment
C. Cost allocation
D. Profit analysis
E. Cost production

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Cost Ascertainment, Objectives
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2023

MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements

Perform cost analysis for a small manufacturer with given data.

Question

Mr. Kogberegbe, a small manufacturer, has approached you as a Cost Accountant with the following data:

Sales Forecast

Required:
Prepare a cash budget for Mr. Kogberegbe’s business for the three months i.e,
September to November, 2016. Calculate the values to the nearest naira and show
all your workings.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Cost Analysis, Small Business
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAY 2016

Question Tag: Cost Accounting

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FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2

Identifies costs included in inventory valuation under IAS 2.

You're reporting an error for "FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2"

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements"

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation"

MI – May 2018 – L1 – SA – Q9 – Cost Classifications

Classification of period costs.

You're reporting an error for "MI – May 2018 – L1 – SA – Q9 – Cost Classifications"

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

You're reporting an error for "MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting"

MI – Nov 2023 – L1 – SB – Q1 – Costing Methods

Create a stores ledger using the weighted average method based on given inventory transactions.

You're reporting an error for "MI – Nov 2023 – L1 – SB – Q1 – Costing Methods"

MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements

Identifying the correct journal entry for issuing direct materials to production.

You're reporting an error for "MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements"

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

You're reporting an error for "FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy"

MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting

This question asks for the basic objective of cost accounting.

You're reporting an error for "MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting"

MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements

Perform cost analysis for a small manufacturer with given data.

You're reporting an error for "MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements"

FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2

Identifies costs included in inventory valuation under IAS 2.

You're reporting an error for "FA – May 2014 – L1 – SA – Q2 – Accounting for Inventories in Accordance with IAS 2"

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements"

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation"

MI – May 2018 – L1 – SA – Q9 – Cost Classifications

Classification of period costs.

You're reporting an error for "MI – May 2018 – L1 – SA – Q9 – Cost Classifications"

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

You're reporting an error for "MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting"

MI – Nov 2023 – L1 – SB – Q1 – Costing Methods

Create a stores ledger using the weighted average method based on given inventory transactions.

You're reporting an error for "MI – Nov 2023 – L1 – SB – Q1 – Costing Methods"

MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements

Identifying the correct journal entry for issuing direct materials to production.

You're reporting an error for "MI – Nov 2023 – L1 – SA – Q7 – Accounting for Cost Elements"

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

You're reporting an error for "FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy"

MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting

This question asks for the basic objective of cost accounting.

You're reporting an error for "MI – May 2023 – L1 – SA – Q7 – Introduction to Cost Accounting"

MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements

Perform cost analysis for a small manufacturer with given data.

You're reporting an error for "MI – May 2016 – L1 – SB – Q2b – Accounting for Cost Elements"

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