CIMA Exam CIMAPRA17-BA2-1 Topic 4 Question 85 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 85
Topic #: 4

Refer to the exhibit.

WS operates an integrated accounting system. Transactions relating to production overheads for the month of May were as follows:

Indirect Material costs were $15,000

Indirect Labour Costs were $45,000

Production overheads of $58,000 were incurred during the period.

Depreciation of factory machinery amounted to $32,000.

Overheads costs absorbed by production using a standard absorption rate was $164,000 for the period.

What are the correct entries to record the absorption of production overheads for the period?

The correct set of entries to record the absorption of production overheads for the period is:

Show Suggested Answer

Suggested Answer: B, C, E

https://www.cgma.org/resources/reports/globalmanagementaccountingprinciples/about-the-principles.html#?tab-1=3

by Stevie at Oct 19, 2024, 11:36 AM

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Monroe

11 days ago

Wait, wait, wait. Did they really just give us a question about an 'integrated accounting system'? What is this, a test for accountants? *chuckles*

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Amie

12 days ago

Hmm, I'm not sure. The numbers seem a bit confusing, but I'm leaning towards option B. Someone help me out here!

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An

13 days ago

Okay, let's see. We have all the relevant information about the production overheads, so I think option D looks like the correct answer.

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Yolando

16 days ago

That makes sense, I didn't consider the depreciation. Option C might be the correct choice after all.

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Tequila

17 days ago

I disagree, I believe the correct entries are in option C because of the depreciation of factory machinery.

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Yolando

24 days ago

I think the correct entries to record the absorption of production overheads for the period is option A.

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