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Economics, Accounting & Business: Post your doubts here!

:: A^

:: A^

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Q15- Opening Stock and Profit have an opposite relationship.
So if it goes down, Profit for this year will increase.
This years opening stock is last years closing stock.
So if closing stock falls reserve will fall.
Hence answer: C
Q17 - Sold Stock is given at selling price, so find the cost.
which is 15000/125 * 100 = 12000
Now go backwards to find the bal at 31 December = 104000+12000-16000 = $100000 = B
Q29 - Absorption costing you take all the production overheads regardless whetehr fixed or variable then divide by the budgeted output.
So : 1200000+800000/10000 = 200 = A
Q30 - Actual fixed overheads = 360000
Under absorbed = 3000
Therefore overheads absorbed will be = 360000-3000=357000
Find OAR = 354000/118000=3
Divide the overheads absobed you found earlier by the OAR to find the actual activity = 357000/3 = 119000 = B
Shara Nafaz said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s04_qp_1.pdf
Q15 17 29 30
Click to expand...
 
S

Sarah Paul

Messages
1,328
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273
:: A^ said:
Q15- Opening Stock and Profit have an opposite relationship.
So if it goes down, Profit for this year will increase.
This years opening stock is last years closing stock.
So if closing stock falls reserve will fall.
Hence answer: C
Q17 - Sold Stock is given at selling price, so find the cost.
which is 15000/125 * 100 = 12000
Now go backwards to find the bal at 31 December = 104000+12000-16000 = $100000 = B
Q29 - Absorption costing you take all the production overheads regardless whetehr fixed or variable then divide by the budgeted output.
So : 1200000+800000/10000 = 200 = A
Q30 - Actual fixed overheads = 360000
Under absorbed = 3000
Therefore overheads absorbed will be = 360000-3000=357000
Find OAR = 354000/118000=3
Divide the overheads absobed you found earlier by the OAR to find the actual activity = 357000/3 = 119000 = B
Click to expand...


Dsnt opening stock sales and income have the same relation ship while purchases closing stock and expenses have the opposite relation ship?
 
S

Sarah Paul

Messages
1,328
Reaction score
3,317
Points
273
:: A^ said:
Q15- Opening Stock and Profit have an opposite relationship.
So if it goes down, Profit for this year will increase.
This years opening stock is last years closing stock.
So if closing stock falls reserve will fall.
Hence answer: C
Q17 - Sold Stock is given at selling price, so find the cost.
which is 15000/125 * 100 = 12000
Now go backwards to find the bal at 31 December = 104000+12000-16000 = $100000 = B
Q29 - Absorption costing you take all the production overheads regardless whetehr fixed or variable then divide by the budgeted output.
So : 1200000+800000/10000 = 200 = A
Q30 - Actual fixed overheads = 360000
Under absorbed = 3000
Therefore overheads absorbed will be = 360000-3000=357000
Find OAR = 354000/118000=3
Divide the overheads absobed you found earlier by the OAR to find the actual activity = 357000/3 = 119000 = B
Click to expand...


Dsnt opening stock sales and income have the same relation ship while purchases closing stock and expenses have the opposite relation ship?
 
S

Sarah Paul

Messages
1,328
Reaction score
3,317
Points
273
:: A^ said:
Q15- Opening Stock and Profit have an opposite relationship.
So if it goes down, Profit for this year will increase.
This years opening stock is last years closing stock.
So if closing stock falls reserve will fall.
Hence answer: C
Q17 - Sold Stock is given at selling price, so find the cost.
which is 15000/125 * 100 = 12000
Now go backwards to find the bal at 31 December = 104000+12000-16000 = $100000 = B
Q29 - Absorption costing you take all the production overheads regardless whetehr fixed or variable then divide by the budgeted output.
So : 1200000+800000/10000 = 200 = A
Q30 - Actual fixed overheads = 360000
Under absorbed = 3000
Therefore overheads absorbed will be = 360000-3000=357000
Find OAR = 354000/118000=3
Divide the overheads absobed you found earlier by the OAR to find the actual activity = 357000/3 = 119000 = B
Click to expand...
:: A^ said:
14 is A
Its theory na, loan stock is a liabitly, you owe them, hence they are creditors!
Click to expand...

Thank you so much :)
 
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