CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 24 Discussion

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

Question #: 24
Topic #: 1

A company operates an integrated standard cost accounting system. The standard price of raw material A is $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre. During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2, 550 litres of raw material A were issued to Job 789.

In respect of the above events, which TWO of the following statements are correct? (Choose two.)

AThe raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.

BAn adverse material price variance should be recorded in the statement of profit or loss for period 1.

CThe raw material inventory at the end of period 2 should be valued at $20 per litre.

DAn adverse material price variance should be recorded in the statement of profit or loss for period 2.

EThe first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.

Show Suggested Answer

Suggested Answer: D, E

by Lashaunda at May 05, 2022, 08:59 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!