This afternoons costing exam

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone,<BR><BR>I made a total dogs ear on this afternoon paper by making one addition error <BR><BR>looking i noticed it and redid my others answers which it affected.<BR><BR>Could anyone tell me though if they got 1000units as the break even point and did the beta range become the best option in the production plan followed by gamma then alpha?<BR><BR>Any other answers anyone wants to talk about let us know.<BR><BR>All the best<BR><BR>Kelly<BR><BR>
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  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    <br><br><< <i>Hi<BR><BR>What did you all do for the Allocation of costs section with the Indirect Glazing Costs, hope it went under the Glazing costs?</i> >><br><br><BR><BR>Yeah, that's what I put anyway. I couldn't imagine it would have gone anywhere else.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi<BR><BR>What did you all do for the Allocation of costs section with the Indirect Glazing Costs, hope it went under the Glazing costs?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    hi Blondie<BR>That is the same answer as i got for re order level.<BR>Feeling very depressed as this is a resit as i failed Part 2 in the June exam<BR>At the moment i am not impressed at all with the AAT and althouhg havegone on to techincian stage feel like quitting the lot.<BR>After failing in June I have studied really hard and put all my efforts into being prepared for the resit using the past papers as a guide and working through the exercises from start to finish in the BPP text book, but i really do feel it was just a waste of time and money. I don't think i will even bother to log in in Feb for the results as I just know that i have failed big time.<BR>Did anyone else who was re sitting today have any problems?<BR>I would be grateful to hear if anyone else had problems.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi ya, I'm really new to this Forum. Only joined on Friday whilst revising and asked for loads of help - which I got. Many thanks to Liz, Karen, Sandy, and everyone else that replied. After sitting the exam, really think I should have joined earlier. For what its worth, this is what I can remember.<BR><BR>FIFO: £11,000 Closing Stock.<BR>Re-Order Level: Maximum Useage x Maximum Lead Time (25,000 Kgs x 2 weeks = 50,000 Kgs).<BR>Journal: DR Gross Wages, CR the rest.<BR>OAR: £400 Over Absorbed, and then something like £1369 Under Absorbed (totally wrong then).<BR>Profit: £6900<BR>Limiting Factor Question: Recalculated OHs/DLH (Glazing) as this was the limited factor, can't remember the exact figures, but worked out somthing like Alpha x 1000 units, Gamma x 500 units, Beta x 100 units.<BR>Re Beta Question and BEP, yep said 1000 (52000/52) and recommended not to go ahead as the Company only current sold 200 of these units, which meant an increase of 800 units per month.<BR>Put in absolutley everything I could remember re Payback, NPV and IRR, but not necessarily in the right order or under the right heading - but recommended that the Company go ahead with the purchase as there was a positive NPV figure and the payback was only three years.<BR><BR>Please bear in mind the above has been drowned in a few classes of red wine since I returned.<BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Well... I know I've got the Wages journal wrong because I looked at it and realised I hadn't looked at it since foundation and had forgotten. I waffled on about a load of crap about IRR and NPV in the hope that it might be vaguely in the right direction, so I'm quite sure that's wrong. Also, I think I put the order that would be best to make the products would be 500 hours for Alpha, 500 hours for Gamma and 400 hours for Beta. By the sounds of it, this is wrong too!!<BR><BR>I'm sure the rest of it was fine though. And yeah, I got 1000 for Beta to break even.<BR><BR>I'd really like to know how likely it is that I'll pass with those answers wrong though. If anyone has an idea then I'd love to hear it. I guess we'll just ahev to wait and see!<BR><BR>Anyway, I hope you all did really well.<BR><BR>Lynsey x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    The reorder level was affected by buffer stock wasnt it? I used max time for delivery times max usage and then added buffer stock.<BR><BR>I didnt get Beta as the best, Worked out contribution per unit, then contribution per unit per labour hour.<BR><BR>Hours taken from earlier questio. I got the 6900 profit also. And 1000 break even. The recommendation production for beta was 200, so this came up as a reason not to produce it.<BR><BR>As for wages - bit of a surprise! I debited gross then credit others to applicable accounts. As we were taught that direct wages are a debit to WIP.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi bennie<BR><BR>I also got a re-order level of 75000kg however it was a complete guess.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi Laura<BR><BR>I calculated a re-order level of 75000kg, but I'm not sure it's right.<BR>Calculation: 2 weeks (maximum lead time) x weekly usage (25000 kg) + minimum stock level (25000 kg)<BR><BR>Anyone else got this?<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Repost sorry, but incase u missed it<BR><BR>Hey everyone, i think i did ok on this exam, i can remember some of my results so i'l post em.<BR><BR>Ok 1.1 FIFO - easy i think everyone can do this<BR>1.2 I did 2 X 25000 = 50000<BR>1.3 Couldnt do this, was just guessing<BR>1.4 Was easy, again i think everyone has done this<BR>1.5 B(F)OAR a1. 4.2<BR>a2. 3.6<BR>b1. 400 over absorbed<BR>b2. 750 Under absorbed<BR>1.6 guessed again. I said it would increase overheads<BR><BR>2.1 Easy i think cant remember what i put - i think it was labour rate X units per hour for the labour part of the table, the rest was straight forward, materials (times) sales/production so on.<BR>2.2 Alpha=27 Beta=52 Gamma=43 <BR>2.3 I cant remember but i think it was right, sorry<BR>2.4 Break even point 1000 Units<BR>2.5 Described NPV and payback, had a bit of trouble with IRR<BR>I said we should accept the investment for some really crap reason.<BR><BR>Anyway thats it, i think ive done enough to scrape through. It would be gr8 if we could get some people comparing answers.<BR><BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Yes I got a re-order level of 50 000kgs<BR><BR>Oh, good I may have answered something right.!!<BR><BR>But as alot of people are saying now, alls we can do now is wait!!<BR><BR>In the meantime, I'm going to get into the Christmas spirit now.<BR><BR>Cheers
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hey everyone, i think i did ok on this exam, i can remember some of my results so i'l post em.<BR><BR>Ok 1.1 FIFO - easy i think everyone can do this<BR>1.2 I did 2 X 25000 = 50000<BR>1.3 Couldnt do this, was just guessing<BR>1.4 Was easy, again i think everyone has done this<BR>1.5 B(F)OAR a1. 4.2<BR> a2. 3.6<BR> b1. 400 over absorbed<BR> b2. 750 Under absorbed<BR>1.6 guessed again. I said it would increase overheads<BR><BR>2.1 Easy i think cant remember what i put<BR>2.2 Alpha=27 Beta=52 Gamma=43 <BR>2.3 I cant remember but i think it was right, sorry<BR>2.4 Break even point 1000 Units<BR>2.5 Described NPV and payback, had a bit of trouble with IRR<BR>I said we should accept the investment for some really crap reason.<BR><BR>Anyway thats it, i think ive done enough to scrape through. It would be gr8 if we could get some people comparing answers.<BR><BR>Thanks<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi Dawn<BR><BR>I had a reorder level of £50,000kg - Did anyone else get this.<BR><BR>LoopyLaura
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi Bennie,<BR>It said NIC and TAX 'payable' which I took to be a liability (credit). then when it was paid it would be a debit to NIC/TAX liability and a credit to the bank.<BR>who knows!!??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    I just want to cry.<BR><BR>I keep checking the forum every 15-20 minutes to see what answers everyone got.<BR><BR>I don't think I did to good on this exam.<BR><BR>For my labour journal I got the same as mike and for the beta, gemma ect question I think I had the same results as kelly.<BR><BR>What did you all get for the re-order lever? <BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hello everyone<BR><BR>Re: labour journal<BR>Did anyone complete the journal as follows:??<BR><BR>CR Wages control for gross wages amount<BR>DR NIC Contributions<BR>DR Income Tax (PAYE)<BR>DR net wages (direct labour)<BR><BR>Are NIC contributions/Icome tax EXPENSES (i.e debit entry) or LIABILITES (i.e credit entry)?<BR>Not sure I've done this one right.<BR><BR>Thanks!<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi<BR><BR>I got the same as you (g) - But am now starting to be a little doubtful Although at the time I thought the exam was quite easy compared to what I had been preparing myself for. Does anyone agree<BR><BR>I too got Alpha,Gamma , Beta and a profit of £6900. <BR><BR>LoopyLaura
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi Kelly<BR><BR>I didnt sit the exam, but I sat the one in June. The general opinion in my class was everyone of us had failed it, we were convinced! However, everyone who had put the work in PASSED. Chances are if you found it hard so did everyone else. The best thing you can do now is forget about it and enjoy xmas etc.<BR><BR>Sounds like you've earnt a glass/bottle of wine!<BR><BR>Try not to worry.<BR><BR>Sandy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi Kelly,<BR><BR>I did the ECR exam this afternoon aswell. <BR><BR>Yeh I got 1000 units as the breakeven as well, and I think I had Beta as the best production option and Gamma followed by Alpha.<BR><BR>What did you think of the labour journal?<BR><BR>Dawn
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    I also got 1000 units as the break even point and beta range as the best option in the production schedule, then gamma and then alpha.<BR><BR>I'm not too hopeful about the journal and I didn't particularly like the IRR explanation bit. I thought there were parts of it that were quite different from the past papers which I had done. I was expecting to have to do more investment appraisal calculation rather than commenting on.<BR><BR>Not confident about how I've done on this one at all.<BR><BR>Good luck to everyone who took ECR today and good luck to all who are sitting exams.<BR><BR>Susan
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    I too did the exam this afternoon.<BR><BR>Found it a bit more challenging than the last few past papers, but still not very hard.<BR><BR>Im pretty sure the B-E-P was 1000 units because i think the current sales were 200 and i remeber writing they had to increase sales by 500%. The order of rank i got was beta, gamma then alpha.<BR><BR>Little query tho, very last question concerning IRR. I got the this little bit wrong as forgot the meaning of it; If i got everything else spot on, they couldn't fail me on just this little bit of lack of competence surely?<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi<BR><BR>I got the 1000 units for breakeven but i didn't get Beta as the best option!<BR><BR>I thought there were 4 hours per unit which made the contribution per labour hour £13 whereas the others were a lot higher??? Was I wrong?<BR><BR>I found the wages journal tough, not sure if i mucked that up.<BR><BR>The final memo was hard, I wasn't sure what to put for IRR - I can't seem to get that sorted in my head.<BR><BR>Oh well, forget about it until Feb!!<BR><BR>:-)<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    On the labour journal:<BR>Im pretty sure it was<BR> Dr Gross to direct labour,<BR> Cr Ni contributions to NI liability<BR> Cr PAYE to the liabilty<BR> Cr net Wages.<BR><BR>Just like when doing normal accounts i guess
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    I too got 1000 break even but also beta as LOWEST contribution at £13 per labour hr and Alpha the highest.<BR>my journal was the same as Mikey's so I hope it is right!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    hi,<BR><BR>Breakeven for Beta was 1000 units. £52,000 fixed costs divided by £52 unit contribution. <BR><BR>The order i ranked the products though was 1st Alpha, 2nd Gamma, 3rd beta. I worked this out as follows :- Alpha (unit contribution was £27 / 0.5 hours = £52. Beta (unit contribution was £52 / 4 hours = £13), gamma (unit contribution was £43 / 1 hour = £43)<BR><BR>So the production units for 1,400 hours i used 1000 units of alpha (500 hours used), 500 units of gamma (500 hours used) and 100 units of beta (400 hours used)<BR><BR>Did anyone else have this?<BR><BR>Also on another question to work out the profit did anyone get £6900 ?<BR><BR>Overall i thought the old standards papers were easier than this paper.<BR><BR>G
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi<BR><BR>I got about £54 contribution per unit not £12 as i divided the total contribution of each range by the units sold was this right?<BR><BR>I to found the journal hard but did get CR wages control DR wages control<BR><BR>What did people get for the re-order level<BR><BR>Kind regards<BR><BR>Kelly
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi G<BR><BR>The order i ranked the products though was 1st Beta, 2nd Gamma, 3rd alpha. I worked this out as follows :- Beta unit contribution was £52, so ranked 1st as provides the most contribution 2nd gamma as unit contribution was £43 Alpha unit contribution was £27 <BR><BR><BR>All I remeber is I made 100 units of alpha last?<BR><BR>Anyone agree?<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    hi bailey7, but dont u divide the unit contribution by the labour hours per unit to work out which is best ???<BR><BR>cheers for reply<BR>G
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Hi glove24!!<BR><BR>I got exactly the same for the alpha/beta gamma! also the profit of 6900!<BR><BR>Fools seldom differ!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    This afternoons costing exam

    Seems to be a bit of confusion over this this Alpha beta gamma question. If i remember rightly, this question lead in to a question saying they were considering just selling Beta china and you had to say why this was not a good idea. Im thinking the reason they led into this question was because the previous questions answer was Beta. Not neccessarily a faultless way of looking at it but the questions do tend to flow like this.<BR><BR>Anyways...just a thought <BR><BR><BR>But the more i think about this and read other peoples answers, the more i struggle to remember what i did! Just gotta wait till feb i guess!

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