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CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 72
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.

Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was $158,000.

The accounting entries for the absorption of production overhead for the period would be:

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Suggested Answer: C

by Elfriede at May 29, 2024, 03:59 AM

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Niesha
21 days ago
Option D all the way! Gotta love those predetermined overhead rates, they make the accounting so much simpler. Now, where's the snack bar in this place?
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Sylvia
23 days ago
Hold up, is this a trick question? I feel like I'm missing something here. Better read it over one more time to make sure I don't mess this up.
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Lucia
25 days ago
Haha, looks like someone forgot to double-check the math! That's why I always have a calculator on hand for these exams.
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Linn
3 days ago
A) Debit: production overhead control account $158,000 Credit: work in progress control account $158,000
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Eladia
21 days ago
A) Debit: production overhead control account $158,000 Credit: work in progress control account $158,000
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Sena
1 months ago
I'm a bit confused. Shouldn't the actual production overhead of $158,000 be the amount recorded in the books? Option A seems more logical to me.
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Justine
9 days ago
It's important to accurately record the production overhead to ensure the financial statements reflect the true costs of production.
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Celeste
17 days ago
Yes, that's right. Debit the production overhead control account and credit the work in progress control account.
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Tamesha
23 days ago
Option A is correct. The actual production overhead of $158,000 should be recorded in the books.
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Jacqueline
2 months ago
But the actual production overhead incurred was $158,000, so it should be debited to production overhead control account.
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Pauline
2 months ago
Option D seems to be the correct answer. The predetermined rate is $6 per machine hour, and with 25,500 machine hours worked, the total absorption should be $153,000, which matches the entry in option D.
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Jerrod
24 days ago
Yes, the total absorption should be $153,000 with 25,500 machine hours worked.
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Aleshia
1 months ago
I agree, option D is the correct answer.
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Kanisha
2 months ago
I disagree, I believe the answer is B.
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Jacqueline
2 months ago
I think the answer is A.
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