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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Heike

2 months ago

I bet the answer is hidden in the 'Refer to the exhibit' part. Maybe we need to draw some fancy diagrams or something? *scratches head*

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Malcom

21 hours ago

B) B

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Lenna

14 days ago

I think it's A too.

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Rory

18 days ago

A) A

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Bulah

2 months ago

Alright, time to put on my thinking cap. I'm going to go with option C, but let's see if the others have a better idea.

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Chauncey

6 days ago

I agree with you, option C seems to be the most suitable.

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Salley

11 days ago

I believe option B is the right choice.

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Lai

17 days ago

I think option A might be the correct entry.

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Monroe

2 months 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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Lauran

30 days ago

User 2

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Dortha

1 months ago

User 1

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Amie

2 months 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

2 months 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

2 months ago

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

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Tequila

2 months ago

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

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Yolando

3 months ago

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

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