A.Company X produces a single product with the following standard cost per unit:

Material cost                  £10

Conversion cost             £12

Total cost                        £22

The company operates a backflush costing system with a raw material stock control

account. Details for the current month are:

Raw material stock control account opening balance      £500

Raw materials purchased                                               £4,600

Conversion costs incurred                                             £5,200

Cost of goods sold at standard cost                               £8,998

The closing balance on the raw material stock control account is:

(A) £290

(B) £502

(C) £790

(D) £800

(E) £1,010.

B. A company operates a throughput accounting system. The details of product A per unit are:

Selling price                                      £24.99

Material cost                                      £8.87

Conversion costs                              £12.27

Time on bottleneck resource          6.5 minutes

The return per hour for product A is:

(A) £81.88

(B) £113.26

(C) £117.42

(D) £123.80 (E) £148.80.