CIPM MOCK EXAM

For producing one unit of a product, the materials standard is:

Material X: 6 kg. @ N8 per kg

Material Y: 4 kg. @ N10 per kg.

In a week, 1,000 units were produced the actual consumption of materials was:

Material X: 5,900 kg. @ N9 kg., and

Material Y: 4,800 kg. @ N9.50 per kg.

1Determine the standard cost for the 1000 units of material

• N48,000

• N40,000

• N88,000

• N18,000

For producing one unit of a product, the materials standard is:

Material X: 6 kg. @ N8 per kg

Material Y: 4 kg. @ N10 per kg.

In a week, 1,000 units were produced the actual consumption of materials was:

Material X: 5,900 kg. @ N9 kg., and

Material Y: 4,800 kg. @ N9.50 per kg.

Determine the actual cost for the 1000 units of material

• N45,600

• N98,700

• N18,500

• N53,100

For producing one unit of a product, the materials standard is:

Material X: 6 kg. @ N8 per kg

Material Y: 4 kg. @ N10 per kg.

In a week, 1,000 units were produced the actual consumption of materials was:

Material X: 5,900 kg. @ N9 kg., and

Material Y: 4,800 kg. @ N9.50 per kg.

Determine the total material cost variance

• N10,700

• N2,400

• N500

• N3,100

Goods worth N100,000 were sold by Mr. ROI on credit to Ade on 1st March 2023. The book-keeper, in error, debited this amount to the account of Ada.

In the books of Mr. ROI, the correcting journal entry will be:

• Debit Ade and Credit Ada with N100,000

• Debit Ada and Credit Ade with N100,000

• Debit Ada and Credit Ade with N200,000

• Debit Ada and Credit Ade with N200,000

Don Enterprises presents to you the following relating to its affairs on 1/1/2024.

Motor vehicles                                                N4,500,000

Amount owing to suppliers                            N795,000

Amount due from buyer of goods                   N145,000

Owing to the bank                                          N1,000,000

Cash in hand                                                   N63,450

Fixtures and fittings                                        N1,312,000

Determine the capital of the entity

• N4,940,950

• N1,079,500

• N6,020,450

• N7,099,950

The following is a list of the assets and liabilities of business belonging to Andrew Enterprises. Calculate the capital of Andrew Enterprise.

Inventory of Trade                              N29,200

Loan from Mr. Tunde                         N30,000

Machinery and Plant                          N150,000

Office Equipment                               N71,200

Unpaid bill for inventory                    N22,800

Cash at Bank                                       N28,400

Delivery vans                                      N68,000

Account Receivables                          N28,000

• N374,800

• N344,800

• N322,000

• N232,000

Identify the error in this transaction: Sales of Motor van N800,000 had been entered in the sales account

• Complete reversal of entry

• Error of Original Entry

• Error of Commission

• Error of Principle

Inventory of raw materials at 1/10/2024                    N60,000

Purchases of raw materials                                         N80,000

Returns outwards                                                        N4,000

Manufacturing Wages                                                N80,000

Office salaries                                                             N56,000

Carriage outwards                                                      N4,800

Depreciation of Plant and Machinery                        N1,200

Rent and rates                                                                         N32,000

Inventory of raw materials 30/09/2024                      N52,000

Factory Expenses                                                        N33,600

Note: 80% of rent and rates relates to the factory

What is the Prime Cost?

• N216,000

• N164,000

• N146,000

• N84,000

Inventory of raw materials at 1/10/2024                    N60,000

Purchases of raw materials                                         N80,000

Returns outwards                                                        N4,000

Manufacturing Wages                                                N80,000

Office salaries                                                             N56,000

Carriage outwards                                                      N4,800

Depreciation of Plant and Machinery                        N1,200

Rent and rates                                                                         N32,000

Inventory of raw materials 30/09/2024                      N52,000

Factory Expenses                                                        N33,600

Note: 80% of rent and rates relates to the factory

Determine the production cost

• N201,000

• N234,400

• N80,000

• N403,600

Turnover                                                         N120,000

Net profit before interest and tax                   N60,000

Debenture interest                                          N2,000

Net profit after interest                                   N58,000

Stock                                                               N2,500

Debtors                                                           N5,000

Other current assets                                        N24,000

Current liabilities                                           N10,500

Tax for the year 20%

Calculate Acid test ratio

• 4.43:1

• 2.29:1

• 3.45:1

• 2.76:1