Manufacturing Costs – NBC Institute

PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

Question

Tadesco Limited manufactures Compact Disks. It is planning to introduce a new model and production will begin very soon. It expects the new product to have a life cycle of three years and the following costs have been estimated.

You are required to:
a. Explain Life Cycle Costing and state what distinguishes it from traditional costing technique. (10 Marks)
b. Calculate the cost per unit over the whole life cycle and comment on the price to be charged. (10 Marks)

Answer

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Tags: Cost Analysis, Life Cycle Costing, Manufacturing Costs, Product Life Cycle, Traditional Costing
Level: Level 2

Topic: Cost Management Strategies
Series: NOV 2016

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

Question

Fidelis Textile Mills transfers manufactured products to the Sales Department at cost plus 20%. The following production costs were given to you:

N Prime cost 25,000 Production overhead 8,000 Opening inventory of WIP 2,000 Closing inventory of WIP 3,000

Calculate the value of goods transferred to the Sales Department during the period.

Answer

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Tags: Cost Calculation, Inventory Valuation, Manufacturing Costs
Level: Level 1

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

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

Question

The cost of direct materials, direct wages and direct expenses are the components of ………………………..

Answer

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Tags: Direct Costs, Manufacturing Costs, Prime Cost
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

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

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

Question

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

Answer

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

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2022

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

Question

MAPUTO NIGERIA LIMITED manufactures its product through three processes. The following data relates to Process 2 and Process 3 for the month of October:

100,000 units at N10 each were transferred from Process 1 to Process 2.

Cost Components	Process 2 (N)	Process 3 (N)
Direct Materials	100,000	114,000
Direct Labour	135,000	100,000
Variable Expenses	30,000	53,500
Production Overhead	250,000	200,000

Normal output: 90% for Process 2 and 80% for Process 3
Actual output: 85,000 units for Process 2 and 70,000 units for Process 3
Scrap value of loss: N3 per unit for Process 2 and N2 per unit for Process 3

Required:
a. Prepare Process 2 and Process 3 accounts (16 Marks)
b. Prepare the Normal Loss account (2 Marks)
c. Prepare the Abnormal Gain account (2 Marks)

Answer

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Tags: Abnormal Gain, Manufacturing Costs, Normal Loss, Process Costing, scrap value
Level: Level 1

Topic: Process Costing
Series: MAY 2015

PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Analysis, Life Cycle Costing, Manufacturing Costs, Product Life Cycle, Traditional Costing
Level: Level 2

Topic: Cost Management Strategies
Series: NOV 2016

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

Question

Fidelis Textile Mills transfers manufactured products to the Sales Department at cost plus 20%. The following production costs were given to you:

N Prime cost 25,000 Production overhead 8,000 Opening inventory of WIP 2,000 Closing inventory of WIP 3,000

Calculate the value of goods transferred to the Sales Department during the period.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Calculation, Inventory Valuation, Manufacturing Costs
Level: Level 1

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

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

Question

The cost of direct materials, direct wages and direct expenses are the components of ………………………..

Answer

Find Related Questions by Tags, levels, etc.

Tags: Direct Costs, Manufacturing Costs, Prime Cost
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

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

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

Question

Answer

Find Related Questions by Tags, levels, etc.

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

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2022

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

Question

MAPUTO NIGERIA LIMITED manufactures its product through three processes. The following data relates to Process 2 and Process 3 for the month of October:

100,000 units at N10 each were transferred from Process 1 to Process 2.

Cost Components	Process 2 (N)	Process 3 (N)
Direct Materials	100,000	114,000
Direct Labour	135,000	100,000
Variable Expenses	30,000	53,500
Production Overhead	250,000	200,000

Normal output: 90% for Process 2 and 80% for Process 3
Actual output: 85,000 units for Process 2 and 70,000 units for Process 3
Scrap value of loss: N3 per unit for Process 2 and N2 per unit for Process 3

Required:
a. Prepare Process 2 and Process 3 accounts (16 Marks)
b. Prepare the Normal Loss account (2 Marks)
c. Prepare the Abnormal Gain account (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Abnormal Gain, Manufacturing Costs, Normal Loss, Process Costing, scrap value
Level: Level 1

Topic: Process Costing
Series: MAY 2015

Question Tag: Manufacturing Costs

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PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

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

Identifies costs included in inventory valuation under IAS 2.

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

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

Identifies costs included in inventory valuation under IAS 2.

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

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PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

You're reporting an error for "PM – Nov 2016 – Q2 – Cost Management Strategies"

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

You're reporting an error for "FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)"

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

You're reporting an error for "FA – May 2014 – L1 – SA – Q13 – Control Accounts"

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"

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)"

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

You're reporting an error for "MI – May 2015 – L1 – SB – Q2 – Costing Methods"

PM – Nov 2016 – Q2 – Cost Management Strategies

Question requires explanation of Life Cycle Costing concepts and calculation of unit costs over 3-year product lifecycle for a CD manufacturer.

You're reporting an error for "PM – Nov 2016 – Q2 – Cost Management Strategies"

FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)

This question tests ability to calculate the value of goods transferred to the Sales Department in a manufacturing context.

You're reporting an error for "FA – May 2014 – L1 – SA – Q16 – Accounting for Inventories (IAS 2)"

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

You're reporting an error for "FA – May 2014 – L1 – SA – Q13 – Control Accounts"

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"

FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)

Identify the cost that should be included in determining the value of inventories for a manufacturing company.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q9 – Accounting for Inventories (IAS 2)"

MI – May 2015 – L1 – SB – Q2 – Costing Methods

Prepare process accounts, normal loss account, and abnormal gain account for Maputo Nigeria Limited for Process 2 and Process 3.

You're reporting an error for "MI – May 2015 – L1 – SB – Q2 – Costing Methods"

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