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The ECR Exam 30/11/2009

2456

Comments

  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    i think i worked out the normal loss was £45, but wouldn't figure out the cost per unit of the total output because of the abnormal gain. i couldn't get the thing to balance
  • dingalingdingaling Feels At Home Registered Posts: 31
    oh, i hope it was an error, i wouldn't figure out the cost per unit when there was an abnormal gain, it just wouldn't balance. but i'm sure we did one in class that had no opening balacne no closeing balance and had an abnormal gain.

    I don't know for defo with this one, but I can't see how you would end up with 515 when you only began with 500 for the process. I can understand that the 5% normal loss could decrease which could give you an abnormal gain, but it would still be within what you started off with in the first place and would then blance at the end.
  • spursfan323spursfan323 Feels At Home Registered Posts: 28
    Section 2 harder than expected

    Like others above, I found Section 2 much harder than expected. It's (a bit perverse but) very therapeutic to see that others also had trouble!

    I know they always try to sneak new things in every year but - to the best of my memory - a P&L for Marginal and Absorption has never before come in a past paper, so I didnt revise it properly. I made a total hash of it and will have to hope everyone else also struggled!

    Not only that but I seem to recall my Kaplan tutor saying expressly that it won't come up. I will have words with her.

    I also was unsure of the Process costing question - I recognised there was an abnormal gain, but as it likewise has never before come up, I didnt quite know what to do with it.
  • missymissy Feels At Home Registered Posts: 76
    Paul1990 wrote: »
    £30 per kg wasnt it?
    I got the same answer as you £30 per kg (abnormal gain)
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    Paul1990 wrote: »
    £30 per kg wasnt it?

    i worked it out to be £30.19 per unit but it didn't balance it the bottom. because when i put the abnormal gain on the other side of the t-account it didn't balance.
  • dingalingdingaling Feels At Home Registered Posts: 31
    Like others above, I found Section 2 much harder than expected. It's (a bit perverse but) very therapeutic to see that others also had trouble!

    I know they always try to sneak new things in every year but - to the best of my memory - a P&L for Marginal and Absorption has never before come in a past paper, so I didnt revise it properly. I made a total hash of it and will have to hope everyone else also struggled!

    Not only that but I seem to recall my Kaplan tutor saying expressly that it won't come up. I will have words with her.

    I also was unsure of the Process costing question - I recognised there was an abnormal gain, but as it likewise has never before come up, I didnt quite know what to do with it.

    P&L's are unit 5! I've got that on Weds which is the only reason I knew what to do with it (sort of).

    Think its a bit unfair that your tutor told you that it wouldn't come up too. Its touched upon in the text book that I have (not Kaplan btw) but doesn't go into mass detail, but if its there it can be tested.

    I don't think this examiner likes us :(
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    dingaling wrote: »
    I don't know for defo with this one, but I can't see how you would end up with 515 when you only began with 500 for the process. I can understand that the 5% normal loss could decrease which could give you an abnormal gain, but it would still be within what you started off with in the first place and would then blance at the end.

    you can have a gain, it's called an abnormal gain and it goes on the same side of the account as the input of 500, i think the total was 540 due to 515 output and the 25 normal loss.
  • meibakermeibaker Trusted Regular Registered Posts: 481
    my cost per unit is £30.
  • spursfan323spursfan323 Feels At Home Registered Posts: 28
    I got:

    Normal loss (Scrap) 25kg x 1.68 = £42
    Completed ouput: also got £30 per kg (£14,250 / 475 )
    Abnormal gain: having not revised it properly didnt know what to do with it so just dumped it on the right (yeah i know) with nothing in the £ column.

    Hopefully got a few marks for effort though.
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    meibaker wrote: »
    my cost per unit is £30.

    oh, i nearly put £30 but i put £30.19, no wonder i couldn't get it to balance. never mind,i'm sure i'll get some marks for getting most of it right. well i hope so.
  • meibakermeibaker Trusted Regular Registered Posts: 481
    the last quesiton, net present cost, do we need to minus the disposal or plus, i plus the disposal instead minus!
  • Paul1990Paul1990 New Member Registered Posts: 6
    I think the answer i got was:
    Direct costs - 500 kg - 14292
    Abnomal gain - 40 kg x £30 - £1200

    TOTAL
    540kg
    £15492

    Normal loss - 25 kg x £1.68 - £42
    Output - 515 kg x £30 - £15450

    TOTAL
    540 kg
    £15492

    Stupid question
  • keane155keane155 Trusted Regular Registered Posts: 404
    meibaker wrote: »
    my cost per unit is £30.

    At least I might of got one part of a question right, I got £30 aswell.
  • meibakermeibaker Trusted Regular Registered Posts: 481
    abnormal gain 40kg £30 £1200
  • MargaMarga Experienced Mentor Registered Posts: 981
    hi i found section 2 a bit difficult

    The P&L i hope i got it right ...never done something like that before in this area but i just hope my common sense helped me here... i got better profit with the FAC than the MC but who knows


    also the process one jeeezzz i thought well 500 goes in and 515 comes out....should i put my tenner in that process i might get a £15 back!!!! lol my cost per kg though was 28.50

    (I did all costs - the normal loss) divided by the 500 units, when trying to balance out the control account it drove me nuts....


    also in the one about the vans...did anyone ended up with the same figure? so any van could be purchased?


    i hope i have passed, i have unit 30 tomorrow and unit 5 on wednesday
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    I got:

    Normal loss (Scrap) 25kg x 1.68 = £42
    Completed ouput: also got £30 per kg (£14,250 / 475 )
    Abnormal gain: having not revised it properly didnt know what to do with it so just dumped it on the right (yeah i know) with nothing in the £ column.

    Hopefully got a few marks for effort though.

    i think that's pretty much what i did, except i dumpted the abnormal gain on the left. i'm sure we'll get some marks for getting most of it right
  • meibakermeibaker Trusted Regular Registered Posts: 481
    i've got that answer as well.
  • dingalingdingaling Feels At Home Registered Posts: 31
    you can have a gain, it's called an abnormal gain and it goes on the same side of the account as the input of 500, i think the total was 540 due to 515 output and the 25 normal loss.

    But you can't have an abnormal gain over what was originally put through the process. If you start with 500 with no opening or closing balance you can't magically gain another 15. Its not possible.
  • dingalingdingaling Feels At Home Registered Posts: 31
    Marga wrote: »
    hi i found section 2 a bit difficult

    The P&L i hope i got it right ...never done something like that before in this area but i just hope my common sense helped me here... i got better profit with the FAC than the MC but who knows


    also the process one jeeezzz i thought well 500 goes in and 515 comes out....should i put my tenner in that process i might get a £15 back!!!! lol my cost per kg though was 28.50

    (I did all costs - the normal loss) divided by the 500 units, when trying to balance out the control account it drove me nuts....


    also in the one about the vans...did anyone ended up with the same figure? so any van could be purchased?


    i hope i have passed, i have unit 30 tomorrow and unit 5 on wednesday

    I got 2 different answers with the vans! and opted for the first van! mush more my style :)
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    dingaling wrote: »
    But you can't have an abnormal gain over what was originally put through the process. If you start with 500 with no opening or closing balance you can't magically gain another 15. Its not possible.

    you can, it's called an ABNORMAL GAIN. look in osborne books. but don't worry i got it wrong too, i put £30.19 and not £30 as the cost per unit.
  • Paul1990Paul1990 New Member Registered Posts: 6
    I think its because the expected output was 475kg so the normal loss expected was 25kg, however 515kg was tha actual output so 515 - 475 is the 40 kd unexpected gain. i.e. abnormal gain
  • catheriner3482catheriner3482 Feels At Home Registered Posts: 41
    dingaling wrote: »
    I got 2 different answers with the vans! and opted for the first van! mush more my style :)

    i think i went for van 1 too, it had a higher NPV i think. can't remember now.
  • meibakermeibaker Trusted Regular Registered Posts: 481
    i think i went for van 1 too, it had a higher NPV i think. can't remember now.

    me too.
  • dingalingdingaling Feels At Home Registered Posts: 31
    you can, it's called an ABNORMAL GAIN. look in osborne books. but don't worry i got it wrong too, i put £30.19 and not £30 as the cost per unit.

    Not being funny mate, but I know what an abnormal gain is thanks. Its physically impossible to get more out than you put in which is why my totor is ringing AAT tmro to find out.

    As for getting it wrong, I think you are making the wrong assumption because I know how to work out the cost per kg based on the exoected output.

    Please don't talk to me anymore, and I would recommend buying a new book!
  • pennywisepennywise Just Joined Registered Posts: 2
    For the last question of section 2, was it just me or was there a row missing for the disposal amount in the second answer table? This could have been an error. Maybe. Clutching at straws!
  • MargaMarga Experienced Mentor Registered Posts: 981
    dingaling wrote: »
    I got 2 different answers with the vans! and opted for the first van! mush more my style :)

    did we have to add the disposal value to the costs? i did substract it as the costs were negative and the disposal is positive? ....oh well its done now ....
  • meibakermeibaker Trusted Regular Registered Posts: 481
    but did you minus or plus the disposal?
  • meibakermeibaker Trusted Regular Registered Posts: 481
    Marga wrote: »
    did we have to add the disposal value to the costs? i did substract it as the costs were negative and the disposal is positive? ....oh well its done now ....[/QUO
    you are right, i plus the disposal though. ;-(
  • Paul1990Paul1990 New Member Registered Posts: 6
    What did you all put for the profit maximisation/6000kg limiting factor question?
  • dingalingdingaling Feels At Home Registered Posts: 31
    Marga wrote: »
    did we have to add the disposal value to the costs? i did substract it as the costs were negative and the disposal is positive? ....oh well its done now ....

    I did that too and got to different answers and managed to blag my way through why I chose it :s time will tell!
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