Answers - ACCA

Workings Cost of Distribution
Marks
Administrative
Sales Cost Expenses
W1 $ $ $
Amortisation of intangible asset 5,000 1
Wages and salaries (40:35:25) 57,600 50,400 36,000 1·5
Insurance ($14,000 – $2,000) 6,000 6,000 1
Energy expenses ($70,000 + $12,000) (50:20:30) 41,000 16,400 24,600 3
Opening inventory 128,000 0·5
Administrative expenses 64,000 0·5
Purchases 884,000 0·5
Discounts received (1 mark) (76,000) 1
Director’s remuneration 56,000 0·5
Depreciation – plant 22,000 1
Depreciation – buildings (50:30:20) 14,800 8,880 5,920 3
Increase in allowance for receivables (1 mark) 4,800 1
Closing inventory (1 mark) (60,000)
–––––––––– ––––––– ––––––––
1
1,087,400
––––––––––
81,680
–––––––
126,320
––––––––
(5·5 marks) (3 marks) (7 marks) (15·5 marks)
W2 Non-current assets Total
Land Buildings Plant
Property, Plant
& Equipment
$ $ $ $
Cost 188,000 592,000 176,000 956,000
Depreciation b/f
Current year’s depreciation:
(48,000) (88,000) (136,000)
Plant ($176,000 – $88,000) x 25% (22,000) (22,000)
Buildings $592,000 x 5% (29,600) (29,600)
Revaluation of land 12,000
–––––––– –––––––– ––––––––
12,000
––––––––
200,000
––––––––
514,400
––––––––
66,000
––––––––
780,400
––––––––
(1 mark) (1·5 marks) (1·5 marks) (4 marks)
W3 Intangible Assets
$000
Cost 50
Amortisation (50/5) * 6/12 (5)
–––
Value as at 31 May 2009 45
–––
(b) Accounting ratios
(i) Earnings per Share
Profit after tax
––––––––––––––––––– =
142,600
–––––––––
No. of ordinary shares 570,000
= 25·0 cents
(ii) Price earnings ratio
Current share price per share
––––––––––––––––––––––––– =
110c
––––– = 4·4
Earnings per share 25c
Marking scheme: 0·5 mark for stating the correct formula and 1 mark for calculating the correct ratio.
15