LC accounting Help Thread

outnumbered

This is for all your accounting questions. We can use it to help one another when we stumble across a calculation we're not sure of.


MARGINAL COSTING HELP
My first question is 2004 Q8- Marginal costing part (b)
why do we add 206100 and 228045 and divide them by 6.74?
I get where all the figures come from but don't understand we we use these figures.

Second Question, 2006, Q8 Part b of A. anyone know how or can explain it to me? The marking scheme makes no sense.

And finally, on the same question as above, Part B for the closing stock, why is it a quarter of Production costs???

Any help will be greatly appreciated!

Brendan1234

outnumbered wrote: »

And finally, on the same question as above, Part B for the closing stock, why is it a quarter of Production costs???

Any help will be greatly appreciated!

Sorry, I don't have my papers on hand so I can't help with the others, but for this type of question the value of closing stock = (production costs) x (fraction of products not sold), this is because the value of closing stock is the cost of whatever stock you still have. If I remember correctly in this question the company had produced 8000 units and sold 6000? Either way, just suppose they had, then the company would still have one quarter of the stock it produced that year.

outnumbered

Brendan1234 wrote: »

Sorry, I don't have my papers on hand so I can't help with the others, but for this type of question the value of closing stock = (production costs) x (fraction of products not sold), this is because the value of closing stock is the cost of whatever stock you still have. If I remember correctly in this question the company had produced 8000 units and sold 6000? Either way, just suppose they had, then the company would still have one quarter of the stock it produced that year.

Ohhhhhhhh! Thanks ever so much! that really helped!
If you could help with the others when you get the papers, i'd really appreciate it man!

teach88

Make sure you don't rely too much on the Costing questions. Study the Budgeting ones too as they tend not to change from year to year. Costing can be awkward sometimes.

outnumbered

teach88 wrote: »

Make sure you don't rely too much on the Costing questions. Study the Budgeting ones too as they tend not to change from year to year. Costing can be awkward sometimes.

Okay thanks. The only thing that i'm concerned with is that what if budgeting doesn't come up, like costing in 2012?

CookieMonster.x

outnumbered wrote: »

This is for all your accounting questions. We can use it to help one another when we stumble across a calculation we're not sure of.


MARGINAL COSTING HELP
My first question is 2004 Q8- Marginal costing part (b)
why do we add 206100 and 228045 and divide them by 6.74?
I get where all the figures come from but don't understand we we use these figures.

Second Question, 2006, Q8 Part b of A. anyone know how or can explain it to me? The marking scheme makes no sense.

And finally, on the same question as above, Part B for the closing stock, why is it a quarter of Production costs???

Any help will be greatly appreciated!

1. You need to use the target profit formula for that part.
2. Okay this might be a bit confusing to explain so ask if you don't understand me!
In the question, it says that 5% of sales is variable. That affects your variable costs. If the sales price goes up, then that 8.14 goes up.
Of that 8.14, 5% of €12 is variable. 5% of 12 is 0.6. 8.14-.6=7.54. 7.54 is the amount of variable costs (multiplied by units) that will not change. For each question that has a different selling price you need to add on 5% of that SP to te variable cost.
So in this case the SP is now 13. 5% of 13 is 0.65 so you add this on to 7.54 to get 8.19. This is your new variable cost per unit.
The formula is
Sales - VC - FC = profit.
Let x equal the number of units to be sold.
13x - 8.19x (new figure) - 158600 = 0.1(13x)
Then you can solve.
Hope this helps, feel free to ask any questions!

ray2012

CookieMonster.x wrote: »

1. You need to use the target profit formula for that part.
2. Okay this might be a bit confusing to explain so ask if you don't understand me!
In the question, it says that 5% of sales is variable. That affects your variable costs. If the sales price goes up, then that 8.14 goes up.
Of that 8.14, 5% of €12 is variable. 5% of 12 is 0.6. 8.14-.6=7.54. 7.54 is the amount of variable costs (multiplied by units) that will not change. For each question that has a different selling price you need to add on 5% of that SP to te variable cost.
So in this case the SP is now 13. 5% of 13 is 0.65 so you add this on to 7.54 to get 8.19. This is your new variable cost per unit.
The formula is
Sales - VC - FC = profit.
Let x equal the number of units to be sold.
13x - 8.19x (new figure) - 158600 = 0.1(13x)
Then you can solve.
Hope this helps, feel free to ask any questions!

I KNEW you were going to post on this thread. You and Accounting love each other!!! :P

teach88

outnumbered wrote: »

Okay thanks. The only thing that i'm concerned with is that what if budgeting doesn't come up, like costing in 2012?

Costing did come up in 2012 (Overhead Apportionment) but they mixed a bit of Flexible Budgeting into the question.

If you look back over the papers, you'll notice that they have started to play around with the Costing question but the Budgeting ones are still the same as always. Much more reliable :cool:

outnumbered

teach88 wrote: »

Costing did come up in 2012 (Overhead Apportionment) but they mixed a bit of Flexible Budgeting into the question.

If you look back over the papers, you'll notice that they have started to play around with the Costing question but the Budgeting ones are still the same as always. Much more reliable :cool:

ah i see!
cheers!
Btw, is there any other advice you could give me for accounting?
Should one use pen or pencil? would you do the theory in a seperate booklet? and also use a seperate booklet for workings?
Do we need full headings/dates?
Thanks.

outnumbered

CookieMonster.x wrote: »

1. You need to use the target profit formula for that part.
2. Okay this might be a bit confusing to explain so ask if you don't understand me!
In the question, it says that 5% of sales is variable. That affects your variable costs. If the sales price goes up, then that 8.14 goes up.
Of that 8.14, 5% of €12 is variable. 5% of 12 is 0.6. 8.14-.6=7.54. 7.54 is the amount of variable costs (multiplied by units) that will not change. For each question that has a different selling price you need to add on 5% of that SP to te variable cost.
So in this case the SP is now 13. 5% of 13 is 0.65 so you add this on to 7.54 to get 8.19. This is your new variable cost per unit.
The formula is
Sales - VC - FC = profit.
Let x equal the number of units to be sold.
13x - 8.19x (new figure) - 158600 = 0.1(13x)
Then you can solve.
Hope this helps, feel free to ask any questions!

Thank you so much! I don't have the question on me now but will take a deeper look tomorrow! thanks so much! x

Student007

found this on the web: http://egs.ie/accountancy/ it might be of some help. (navigation bar on the left)

teach88

outnumbered wrote: »

ah i see!
cheers!
Btw, is there any other advice you could give me for accounting?
Should one use pen or pencil? would you do the theory in a seperate booklet? and also use a seperate booklet for workings?
Do we need full headings/dates?
Thanks.

I would use pen as pencil can be difficult to read. That said, if you're prone to making mistakes, pencil might be better that crossing out or destroying the page in tippex.

I would do the theory directly after the account but again, up to you. Just make sure that if you are jumping between booklets that you write clearly where the rest of the question can be found.

As regards, dates and headings, the markers are clamping down on what some people call the "technicalities", i.e. the words in the accounts, etc. There are more marks given now for having the correct words with the figures that ever before so you can't afford you take any short cuts.

A bit of general advice would be to make sure you are comfortable with Q5, just in case two nasty 100 markers come up. It amazes me that some people go into the exam with no preparation done for a question that has come up every year since the course was introduced!

CookieMonster.x

ray2012 wrote: »

I KNEW you were going to post on this thread. You and Accounting love each other!!! :P

What can I say we're like two peas in a pod :P

ray2012

You know when you put a reduction in Bad debt provision under the 'Add other income' in the P+L account and add it? I'm just wondering what would you do with an increase in bad debt provision? Would you leave it in 'other income' but just subtract it?

bluejay14

ray2012 wrote: »

You know when you put a reduction in Bad debt provision under the 'Add other income' in the P+L account and add it? I'm just wondering what would you do with an increase in bad debt provision? Would you leave it in 'other income' but just subtract it?

I have a feeling it goes into expenses but I wouldn't take that as 100% true because we haven't done any questions with an adjustment like that it in in months.

Aspiring

This is class. Just posting here so I won't forget it. Can this be a general discussion or does it have to be serious?

Depreciation for life.
Suspense.. not so much.

outnumbered

Aspiring wrote: »

This is class. Just posting here so I won't forget it. Can this be a general discussion or does it have to be serious?

Depreciation for life.
Suspense.. not so much.

Ah no, general discussion! whatever you want

Hm? I'm lost? :P hah

Aspiring

outnumbered wrote: »

Ah no, general discussion! whatever you want

Hm? I'm lost? :P hah

Sorry I meant I like depreciation questions, but dislike suspense ones

ray2012

I can still never understand why the Q1 isn't taught by some teachers...! :P

outnumbered

ray2012 wrote: »

I can still never understand why the Q1 isn't taught by some teachers...! :P

It's not thought by mine, but nothing i can do :P
I am feeling ok for accounting now.
Need to learn the theory to get this A1 though....

Aspiring

ray2012 wrote: »

I can still never understand why the Q1 isn't taught by some teachers...! :P

Happens in our school, been begging the teacher he finally agreed to "brush over it for a week or 2"

outnumbered

Aspiring wrote: »

Sorry I meant I like depreciation questions, but dislike suspense ones

Ah yeah same!

CookieMonster.x

ray2012 wrote: »

You know when you put a reduction in Bad debt provision under the 'Add other income' in the P+L account and add it? I'm just wondering what would you do with an increase in bad debt provision? Would you leave it in 'other income' but just subtract it?

Decrease goes under gains and increase goes in expenses

outnumbered

CookieMonster.x wrote: »

Decrease goes under gains and increase goes in expenses

CookieMonster, are you going for Medicine too?

CookieMonster.x

outnumbered wrote: »

CookieMonster, are you going for Medicine too?

I am hoping for an A1 in accounting but its looking quite unlikely now.. Damn theory! :P

outnumbered

CookieMonster.x wrote: »

I am hoping for an A1 in accounting but its looking quite unlikely now.. Damn theory! :P

Same! ah no, lots of time in that week we have inbetween biology and accounting
So, how much study are you doing? and were you far of the required points in the mocks?

CookieMonster.x

outnumbered wrote: »

Same! ah no, lots of time in that week we have inbetween biology and accounting
So, how much study are you doing? and were you far of the required points in the mocks?

Well I haven't exactly done much to be honest so I'd say I'll be repeating! I don't mind too much seeing as I'm young enough. If I did get it I'd like to take a year out so whatever happens, happens!
Anyway as I said I didn't study as much as other people. I thought I had done terribly in the mocks but I was extremely surprised that I got 530 (I think - in or around that anyway). So hopefully I'll go up although I'm not expecting what I could get :P
What about you? How did you do in the mocks?

bluejay14

ray2012 wrote: »

I can still never understand why the Q1 isn't taught by some teachers...! :P

We did them last year but coming up to the mocks the class decided that we'd rather do the 2 60 markers than the 120 mark. It cuts down on the learning really because a good few of the topics come up as 100 markers too, usually just with an added balance sheet.

I think I have a better chance with the 60 markers, less room for error and all that. I usually lose maybe 5 marks max on each on a good day but the 120s are a comedy of errors anytime I've even considered doing one of them.

outnumbered

CookieMonster.x wrote: »

Well I haven't exactly done much to be honest so I'd say I'll be repeating! I don't mind too much seeing as I'm young enough. If I did get it I'd like to take a year out so whatever happens, happens!
Anyway as I said I didn't study as much as other people. I thought I had done terribly in the mocks but I was extremely surprised that I got 530 (I think - in or around that anyway). So hopefully I'll go up although I'm not expecting what I could get :P
What about you? How did you do in the mocks?

ah I was thinking if repeating too. I'd say i could get a good solid 550/560 but not sure if i would repeat at that or not. I'm young too. I didn't do TY.
The mocks were horrific for me actually! especially accounting! You see i actually studied nothing that came up and usually i get 100% in accounting :O
in the end think i got in or around 490?
I really wish I was good at the HPAT tbh. It would make things a whole lot simpler!

CookieMonster.x

outnumbered wrote: »

ah I was thinking if repeating too. I'd say i could get a good solid 550/560 but not sure if i would repeat at that or not. I'm young too. I didn't do TY.
The mocks were horrific for me actually! especially accounting! You see i actually studied nothing that came up and usually i get 100% in accounting :O
in the end think i got in or around 490?
I really wish I was good at the HPAT tbh. It would make things a whole lot simpler!

I did TY and most people are older than me :P
Yeh I was disappointed with accounting! I used to get 1
A1s in tests all the time and then I made stupid mistakes in the mocks. Also I didn't and still haven't learned any theory.. Sure there's plenty of time to do it all! :P
I hate the way there are so many questions to cover but we only have to do 4 in the exam.. And lack of choice! Could really go terribly! I find I forget how to do some things really easily.. It's all about practice really though!
Everything will work out in the end though and if we don't get it this year we can always try again next year

outnumbered

CookieMonster.x wrote: »

I did TY and most people are older than me :P
Yeh I was disappointed with accounting! I used to get 1
A1s in tests all the time and then I made stupid mistakes in the mocks. Also I didn't and still haven't learned any theory.. Sure there's plenty of time to do it all! :P
I hate the way there are so many questions to cover but we only have to do 4 in the exam.. And lack of choice! Could really go terribly! I find I forget how to do some things really easily.. It's all about practice really though!
Everything will work out in the end though and if we don't get it this year we can always try again next year

Not so bad! :P
yeah, so much room for error in accounting! It really is all about practice! seemingly if you know how to do the 2 latest questions on each topic from the paper you should be fine.
Yeah. Repeating wouldn't be so bad anyway! It would be easy this time next year hahaha. I was considering that biomed course in ucd but what's the point taking it for the sake of it! Hardly anything works out on the first go sure!

CookieMonster.x

outnumbered wrote: »

Not so bad! :P
yeah, so much room for error in accounting! It really is all about practice! seemingly if you know how to do the 2 latest questions on each topic from the paper you should be fine.
Yeah. Repeating wouldn't be so bad anyway! It would be easy this time next year hahaha. I was considering that biomed course in ucd but what's the point taking it for the sake of it! Hardly anything works out on the first go sure!

I'd take a year out before starting another course, the fees for medicine are huge!!
I've decided to leave accounting now until after my French exam. Hopefully I can cram theory in then :P

ray2012

CookieMonster.x wrote: »

Decrease goes under gains and increase goes in expenses

Thanks!

bluejaymraz wrote: »

We did them last year but coming up to the mocks the class decided that we'd rather do the 2 60 markers than the 120 mark. It cuts down on the learning really because a good few of the topics come up as 100 markers too, usually just with an added balance sheet.

I think I have a better chance with the 60 markers, less room for error and all that. I usually lose maybe 5 marks max on each on a good day but the 120s are a comedy of errors anytime I've even considered doing one of them.

Really? We've never attempted the two 60 markers, we've always done the straight 120. I find that I used to be horrific at them up until like .. a week ago (:P). I just sat down and basically learned the workings off. Once you have the workings done, you're fairly sorted. Like the workings for each of the accounts are almost the exact same (bar maybe 1) every year that account comes up. I'm really hoping a company account doesn't come up though. It came up in 2012, so I can't see them putting it up again, but if it does I'll cry! I've prepared only really for the manufacturing and sole trader, a few workings on the company could screw me over!

outnumbered

Yeah!!
OH haha i think spanish, yes actually, spanish is after accounting
Well the best of luck! Keep in touch Re Med!

cmccarra

ray2012 wrote: »

You know when you put a reduction in Bad debt provision under the 'Add other income' in the P+L account and add it? I'm just wondering what would you do with an increase in bad debt provision? Would you leave it in 'other income' but just subtract it?

You would put it in as an item under 'Selling and Distribution' Expenses.

Lcstudent2013

What are ye guys predicting/ hoping / banking on?
I hope Q1 sole trader comes up, but I have gone over manufacturing ,Q5 ratios with Q6 and Q7 to have either a published or incomplete record and Q8/9 are easy so I don't mind.

ray2012

Lcstudent2013 wrote: »

What are ye guys predicting/ hoping / banking on?
I hope Q1 sole trader comes up, but I have gone over manufacturing ,Q5 ratios with Q6 and Q7 to have either a published or incomplete record and Q8/9 are easy so I don't mind.

Sole trader, Interpretation, Published, and a nice marginal costing question would be my ideal. If an incomplete or published don't come up in secton 2, I'll be slightly f**ked! :P

outnumbered

I have a bad feeling it will be completely of the pattern this year! I mean the whole reducing the predictability of the leaving can really be applied with Accounting. If you really need the A1, I'd say cover most things! aswell as the theory really well!

ScummyMan

Depreciation
Debtors/Creditors Control a/c

Incomplete Records
Club a/c

Marginal Costing


Cmoooooon! :pac:

bluejay14

I would be heaven if we got a creditors control and depreciation as two of the 60 markers. Then obviously interpretation, published, tabular would be delightful. I wouldn't be overly off put by an incomplete or club question in either the 60s or 100s. To finish off with either a nice marginal, flexible or cash budget question.

The chances of this happening are probably slim though. Knowing my luck they'll throw in a service firm, farm account, suspense or cash flow somewhere

outnumbered

Man.UnitedLad wrote: »

Depreciation
Debtors/Creditors Control a/c

Incomplete Records
Club a/c

Marginal Costing


Cmoooooon! :pac:

why club?

Slow Show

I don't care what comes up on Q1 tbh as they're all fairly similar, I think the ST workings tend to be the hardest though so if I had a choice I'd like Manufacturing to be on. In Section 2 I'd burst with joy if Incomplete and Suspense came up though if I were to predict it, I'd guess Incomplete and Published. For Management, Marginal Costing or Operating Budgets would be ideal for me and I think they'll both come up!

ScummyMan

outnumbered wrote: »

why club?

Just find them really easy for some reason! And it's one of the few that I actually know the theory for :pac:

outnumbered

Man.UnitedLad wrote: »

Just find them really easy for some reason! And it's one of the few that I actually know the theory for :pac:

ohh sorry. I thought you meant that you think it will come up yeah it is quite nice

cmccarra

Slow Show wrote: »

I don't care what comes up on Q1 tbh as they're all fairly similar, I think the ST workings tend to be the hardest though so if I had a choice I'd like Manufacturing to be on. In Section 2 I'd burst with joy if Incomplete and Suspense came up though if I were to predict it, I'd guess Incomplete and Published. For Management, Marginal Costing or Operating Budgets would be ideal for me and I think they'll both come up!

I find it harder to get a Manufacturing account done in time. I'd much prefer the Sole Trader, can knock them out in about 41mins, gives you a right bit of extra time for the 2 100 markers.

df123

I find accounting really difficult, I didn't cover q1 or q5, any one have any advice for a woman who needs to do some serious cramming?

outnumbered

Practice. Practice. Practice. so just do the bare minimum of questions. And do the last two years of the ones you're doing. theory isn't bad for 15% either!

df123

Thanks a million for the reply! Will do

lizardspock

Would it be a bit too risky to leave out Q5 or...? Those ratios and all the waffle attached just wreck my head. can never seem to get over about 70-80% when I'm looking for the A1ish mark

ray2012

lizardspock wrote: »

Would it be a bit too risky to leave out Q5 or...? Those ratios and all the waffle attached just wreck my head. can never seem to get over about 70-80% when I'm looking for the A1ish mark

You might want to cover it just in-case there is a bad Q6/Q7. You can (hopefully) always rely on the Q5 so it's a handy one!

Aspiring

Just wondering is there a collection of all of the accounting theory online anywhere i.e. the parts you see at the end of the question usually?
If not I'll gladly put one together just let me know if you want me to post it here I haven't managed to find one myself online.