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CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 83 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 83
Topic #: 2
[All CIMAPRA17-BA2-1 Questions]

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.)

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Suggested Answer: D, E

Contribute your Thoughts:

Avery
11 days ago
Haha, this question is a real head-scratcher! I'm going with B and E, but I might have to phone a friend on this one.
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Mitsue
14 days ago
Ah, I got it! The answers are B and E. The price variance should be recorded in period 1, and the job should be debited accordingly. Easy peasy!
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Kayleigh
15 days ago
Hmm, this is a tricky one. I'm leaning towards B and C, but I'm not 100% sure.
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Merrilee
17 days ago
Hold up, I'm pretty sure the correct answers are B and E. The job should be debited at the different prices, and the price variance should be recorded in period 1.
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Viola
20 days ago
I'm a bit confused, but I think B and D are the correct options. There should be an adverse price variance in both periods, right?
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Timothy
6 days ago
I think you're right, both B and D seem to be correct. The price variance should be adverse in both periods.
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Kasandra
23 days ago
I'm pretty sure C and E are the right answers here. The inventory at the end of period 2 should be valued at the standard price, and the job should be debited with the different prices.
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Janna
24 days ago
I'm not sure about statement B and D. Do you think we should record an adverse material price variance in both periods?
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Lorrine
25 days ago
I agree with you, Avery. I also think statement E is correct because the first 500 litres should be debited at $20 per litre.
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Gail
26 days ago
I think the correct answers are B and E. The adverse price variance should be recorded in period 1, and the job should be debited with the different prices accordingly.
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Avery
1 months ago
I think statement A is correct because the raw material inventory at the end of period 1 should include the 100 litres purchased at $21 per litre.
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