Economics, Accounting & Business: Post your doubts here!

[wajiman]

Accounting - MJ03 p4 Q3 b, for the creditors why have they taken the sales of june? Shouldn't it have been for July? Please help always confused with this question.
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s03_qp_4.pdf

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s03_ms_1 2 3 4.pdf

according to info no.2:
Monthly production of the units is equal to the following month’s sales plus 10% for stock.

This means that the Production in July is equal to the next month sales, i.e. August sales + 10% of august sales stock, which is closing stock, we only need it to find out the stock that is produced in July. So equation summarizes to:

July Production = August sales + 10% of August sales
1,100 units = 1,000 + 100

according to info. 4:
Materials are purchased one month before they are needed for production and are paid for
two months after purchase.

this means that the purchases are made one month before production so the no: of goods that are to be produced in july are purchased in june and are paid when they sale in august.

Now over here, we are paying June purchases in August, so that is why creditors figure of june is used

 

[reina81]

according to info no.2:
Monthly production of the units is equal to the following month’s sales plus 10% for stock.

This means that the Production in July is equal to the next month sales, i.e. August sales + 10% of august sales stock, which is closing stock, we only need it to find out the stock that is produced in July. So equation summarizes to:

July Production = August sales + 10% of August sales
1,100 units = 1,000 + 100

according to info. 4:
Materials are purchased one month before they are needed for production and are paid for
two months after purchase.

this means that the purchases are made one month before production so the no: of goods that are to be produced in july are purchased in june and are paid when they sale in august.

Now over here, we are paying June purchases in August, so that is why creditors figure of june is used

what they asked was for the cash balance on 31st July. this means we take all the transactions that take place in July right? so if we are doing this don't we need to take the figures for may? Aaand shouldn't this be the production fig. for June (880). My question was why they had taken (660 *3*4) instead of (880*3*4)?

 

[wajiman]

what they asked was for the cash balance on 31st July. this means we take all the transactions that take place in July right? so if we are doing this don't we need to take the figures for may? Aaand shouldn't this be the production fig. for June (880). My question was why they had taken (660 *3*4) instead of (880*3*4)?

the markscheme is wrong on this question, i had asked this question to my teacher, he said the treatment in the markscheme was wrong, it is 880 not 660 units

 

[reina81]

the markscheme is wrong on this question, i had asked this question to my teacher, he said the treatment in the markscheme was wrong, it is 880 not 660 units

oh thank god kept thinking i was wrong

 

[reina81]

the markscheme is wrong on this question, i had asked this question to my teacher, he said the treatment in the markscheme was wrong, it is 880 not 660 units

One more thing, when finding ARR for the average investment do we subtract scrap value before dividing or not because in some places it is added and in others it isn't even considered.

 

[wajiman]

One more thing, when finding ARR for the average investment do we subtract scrap value before dividing or not because in some places it is added and in others it isn't even considered.

we add scrap value to the average investment then divide it and then add any working capital.

 

[saimaiftikhar92]

we add scrap value to the average investment then divide it and then add any working capital.

previously we used to subtract it but now we are suppose to add it

 

[Saad Ghori]

Does anyone remember the paper in which there is a question of process costing of joint products? I even remember the name of the joint products 'light, medium and heavy' but can't seem to remember the paper

 

[redapple20]

Go to papers theres a box in the corner search these words

 

[WaleedUQ]

Guys, im too lazy to this cash flow
please do it for me

 

[wajiman]

Guys, im too lazy to this cash flow
please do it for me

mate from which paper is this, coz i think there is a mistake in the question in additional info, point no.6, it says there are $25,000 of patents were bought but does not states how many were sold for how much? i might have misinterpreted the question, do correct me if i m wrong

 

[Sijan92]

Hey guys I really need help in A2 Economics. Can anyone help me out in some of the mcqs from 09 May paper3 ?
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q8. Why is the answer B?
Q11. Why is the answer C?
Q27. Why is the asnwer A?
Q29. Why is the asnswer D?

Thank you

 

[WaleedUQ]

mate from which paper is this, coz i think there is a mistake in the question in additional info, point no.6, it says there are $25,000 of patents were bought but does not states how many were sold for how much? i might have misinterpreted the question, do correct me if i m wrong

its not a mistake!
these are from higher studies

 

[gudboy01]

I wanna make sure of one thing..When do we hab to use 'Marginal revenue productivity theory'?I mean in which type of question we hab to explain it?
Like, do we need to explain it in the question, how wages are determined in perfectly competitive market??​

 

[gudboy01]

Hey guys I really need help in A2 Economics. Can anyone help me out in some of the mcqs from 09 May paper3 ?
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q8. Why is the answer B?
Q11. Why is the answer C?
Q27. Why is the asnwer A?
Q29. Why is the asnswer D?

Thank you

8) Its B becoz price is fixed at OP and the horizontal line from P is AR=MR(remember PCM).Then price and output will b fixed at the point MC=MR i.e. OK.
11) I feel sad to say sorry for this. I am also lil confuse for this. When i will clear i will definitely explain it to u.
27) Its A becoz there is reduction in import tarrifs which means the food exported by developing country will b lower than that of before followed by there is reduction in subsidies provided by developed countries means the food of developed countries will highly priced.Now for the gain in favor of developing nations, the productivity of food by developing economy should b in increased by increasing specialisation in food production.
29) Its D becoz of the similar reason explained in no. 27. When the removal of USA subsidy takes place then the cotton growers will suffer from high cost of production than that of the situation when provided subsidy by US govt. Then China can attract the consumers of cotton, by increasing production to meet demand, who are fed up with high price of USA and hence can exploit its comparative advantage in cotton production increased.

Hope it helped u..

 

[hard2face]

GUYS I KNOW YOU WON'T BELIEVE ME
but i have done this question of manufacturing account.
It was in the past papers of OCR
OCR (Oxford, Cambridge and RSA Examinations[1]
i'll show you this question
Depreciation was to be charged on NON CURRENT ASSESTS!
on building as well, if the depreciation is not provided is doesnt mean that building was not supposed to be depreciated.
It could be bought in the year end, or in the start of the year
Their was no PROFIT
their was in fact NET LOSS 11000
depreciation of fact equip was 40k
depreciation for building was 120k
depreciation for office was 20.8 k
Goodwill was 85k
Bank balance was 196000
Aiden capital was 286 000
434 of Mahiria
balance sheet was balancing at 762000
PROFIT of 86K was supposed to be added minus drawings 44

One OAR was 6.7 something and assembly one was 4.53 something dont know the exact!
Indirect wages were apportioned on the basics of No. of employees
Repair and maintenance of machine on the basics of Cost of machinery
Machine was under absorbed and Assembly was over or vice versa. I dont remember much

i searched the whole OCR section on xtreme but didnt found tht typ ov question, plz post the link as soon as possible

 

[wajiman]

its not a mistake!
these are from higher studies

den pls provide the solution

 

[Sijan92]

8) Its B becoz price is fixed at OP and the horizontal line from P is AR=MR(remember PCM).Then price and output will b fixed at the point MC=MR i.e. OK.
11) I feel sad to say sorry for this. I am also lil confuse for this. When i will clear i will definitely explain it to u.
27) Its A becoz there is reduction in import tarrifs which means the food exported by developing country will b lower than that of before followed by there is reduction in subsidies provided by developed countries means the food of developed countries will highly priced.Now for the gain in favor of developing nations, the productivity of food by developing economy should b in increased by increasing specialisation in food production.
29) Its D becoz of the similar reason explained in no. 27. When the removal of USA subsidy takes place then the cotton growers will suffer from high cost of production than that of the situation when provided subsidy by US govt. Then China can attract the consumers of cotton, by increasing production to meet demand, who are fed up with high price of USA and hence can exploit its comparative advantage in cotton production increased.

Hope it helped u..

Thanks a bunch for helping out! Made things a lot clearer.

 

[Zephyro]

I think its like:
A: The demand curve for the monopolistic competition industry should be more elastic than inelastic(which is in case of a monopoly).
B: It can't be monopoly because the curve shows industry demand curve on the same diagram & clearly one firm is not fulfilling all of the demand.
D: It can't be Perfect Competition because a single firm is fulfilling a significantly large proportion of the industry demand & theres little room left for any other, & there are supposed to be a large number of firms in a perfect competition.

11) I feel sad to say sorry for this. I am also lil confuse for this. When i will clear i will definitely explain it to u.

The diagram shows that the curves for a firm and the industry are plotted against the same axis. It's not possible for a single firm to supply the whole market for this product. Quite straight forward, really.

 

[2pac]

Hi please me help me with q13,q20 and q24 of the following paper-
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s04_qp_3.pdf
Thanks