Managerial Accounting Assignment MID TERM EXAM | Universiti Tun Abdul Razak

INSTRUCTION TO CANDIDATE:

1. Please read the instructions given in the question paper
2. There are FOUR (4) questions in this question paper. Answer ALL
3. This mid-semester exam contributes 20% of your total marks.

TOTAL: 60 marks

QUESTION 1

A. Briefly distinguish between managerial accounting and financial accounting. Be sure to comment on the general focus, users, and regulation related to the two fields.

(5 marks)

B. For each of the following, identify and state the relevant accounting concepts.

1. An accounting principle that indicates that an organisation is viewed as a unit independent from its owner.
2. An Accounting principle requiring costs necessary for the generation of revenue are compared (offset) against the revenues in the determination of periodic net income.
3. Accounting is only concerned with the recording of facts that can be expressed in monetary terms, as opposed to using physical or time units of measurements.
4. The cost of a dustbin in an office is treated as a period expense rather than depreciating its cost over its useful life.
5. Business premises are shown on the statement of financial position as RM100,000, its original cost 10 years ago, although its current value is RM2,500,000.
6. Expenses are recognized in the same period as the revenue which results from the incurrence of these expenses.
7. Generally, a business is assumed to have an indefinite life, unless there is evidence to indicate otherwise.
8. The financial statements of a business report the economic activities of the business only and do not include the economic activities of the owner of the business.
9. An accountant generally recognizes losses when there is evidence to indicate a high probability of the losses occurring, but gains are not recognized until they are actually realized.
10. An accounting concept that requires an entity to give the same accounting treatment to similar events in successive accounting periods. (10 marks)

(Total: 15 Marks)

QUESTION 2

Impact & Associates is an interior decorating firm in Kuala Lumpur. The following costs were incurred in a project to redecorate the mayor’s offices:

Direct material                                     RM 29,000

Direct professional labor                            42,000

The firm’s budget for the year included the following estimates:

Budgeted overhead                             RM800,000

Budgeted direct professional labor           640,000

Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labor cost. Actual professional labor during the year was RM655,000 and actual overhead was RM793,000.

Required:

1. Determine the total cost to redecorate the mayor’s offices. (4 marks)
2. Calculate the under- or overapplied overhead for the year. (3 marks)
3. Operation costing is a popular type of accounting system, one that combines selected features of job-order and process-cost accounting. Briefly discuss the basic features that are associated with an operation-costing system with ONE (1) example.

(3 marks)

(Total: 10 Marks)

QUESTION 3

The following information pertains to Zifa Sdn Bhd (ZSB) for the previous financial year.

Beginning inventory in units                                                    5,000

Units produced                                                                        25,000

Units sold                                                                                28,000

Costs per unit:

Direct materials                                                                       RM7.00

Direct labor                                                                             RM4.00

Variable overhead                                                                   RM1.50

Variable selling expenses                                                        RM3,000

Answer

Request Answer of this Assignment