MAC2601 EXAM PACK

QUESTION 1 Electrix Limited, a South African based manufacturer, manufactures a single product that is used in a variety of electrical products, in one process. The following information is available for September 2013: Work-in-process  Material - 1 September 2013 ......................................24 000 units - 100% complete ...............................................R200 000  Conversion costs - 95% complete ...............................................R607 200 Material issued for 44 000 units.................................................................................R888 560 Conversion costs....................................................................................................R2 033 096 Units completed.....................................................................................................50 000 units Work-in-process  Material - 30 September 2013 ...................................10 000 units - 100% complete.............................................  Conversion costs - 75% complete............................................. Additional information: 1. Material is added at the beginning of the process. Conversion costs are incurred evenly throughout the process. 2. Normal spoilage is estimated at 10% of input that reaches the point of spoilage. 3. Losses occur at the end of the process. 4. Stock is valued according to the first-in first-out method. REQUIRED: (a) Prepare the following statements for September 2013: (i) Quantity statement (6) (ii) Production cost statement (3) (iii) Cost allocation statement (6) (b) Prepare the quantity statement if normal spoilage occurs when the process is 80% complete. (5) QUESTION 2 STG Limited uses a standard costing system and manufactures a single product, Caniv. The management of STG Limited has compiled the following Standard Costs Information Shee