Sample Exam Paper A

Example answer by Tim Richardson. Not yet checked by anyone else. 09/07/99

Look out! This answer is from Tim. It is not official.Tim has not yet checked it, really. It may well be wrong.
So there is no chance of misrepresentation here, chuckle.
(Sorry about the colors. I wanted to try one of the new Netscape Composer things. Cool, yeah? )

B2

Joint Costing

1) Product Output by department

Department		Input (kg)		Output (kg)
Cutting		320000		320000
Slicing	30%	96000	100%	96000
Crushing	20	64000	100	64000
Juicing	35	112000	/1.06	105660
Animal Feed	15	48000	100	48000

2) NRV

Sliced Mangosteen Crushed Juice TOTAL

Qty

96000

64000

105660

Price/kg

1.20

1.40

0.80

Sales revenue
115,200

89600

84528

less separable costs

6800

14900

6500

= NRV
108400

74700

78028

261128

%weight
41.51%

28.61%

29.88%

100%

NRVof feed: 48000 * 0.20 - 1200 = 8400
Allocation of joint cost

Sliced Crushed Juiced

41.51% 28.61% 29.88%

32627 22487 23486

(c) Gross margins

Sliced Crushed Juiced

Sales 115,200 89,600 84528

less sep. cost 6800 14900 6500

less alloc. cost 32627 22487 23486

Margin 75773 52213 54542

% 65.78 58.27 64.53

	Sliced Mangosteen	Crushed	Juice	TOTAL
Qty	96000	64000	105660
Price/kg	1.20	1.40	0.80
Sales revenue	115,200	89600	84528
less separable costs	6800	14900	6500
= NRV	108400	74700	78028	261128
%weight	41.51%	28.61%	29.88%	100%

Sliced	Crushed	Juiced
41.51%	28.61%	29.88%
32627	22487	23486