Escolar Documentos
Profissional Documentos
Cultura Documentos
1) B
2) C
3) D
4) C
5) D
6) A
7) C
8) B
9) D
10) A
11) D
12) B
13) C
14) C
15) B
SECTION B
65 MARKS
QUESTION 11
15 MARKS
(a)
Oct. 31
Requisition slips
Work In Process Inventory ..........................................................................
Manufacturing Overhead .............................................................................
Raw Materials Inventory ...................................................................
10,800
1,800
Time tickets
Work in Process Inventory ..........................................................................
Manufacturing Overhead .............................................................................
Factory Labor ....................................................................................
19,600
2,000
Assignment of overhead
Work in Process Inventory ($19,600 90%) ..............................................
Manufacturing Overhead ..................................................................
17,640
1.
2.
12,600
21,600
17,640
17,290
17,290
$ 4,200
48,040
52,240
17,290
$34,950
$16,800
17,640
$
840
QUESTION 12
PROCESS COSTING
15 MARKS
(a)
Physical Units
36,700*
3,500
40,200
Transferred out
Work in process, January 31
Total
*(2,200 + 38,000) 3,500
Materials
36,700
3,500
40,200
Equivalent Units
Conversion Costs
36,700
1,400**
38,100
**(3,500 .40)
(b)
(c)
$0.80
1.05
$1.85
$67,895
$2,800
1,470
$4,270
(d) The production cost report provides the basis for evaluating: (1) the productivity of a
department, (2) whether unit and total costs are reasonable, and (3) whether current
performance is meeting planned objectives.
QUESTION 13
15 MARKS
Overhead Rate
$175
480
60
Sanitizer
Number
Cost
15
$2,625
13
6,240
160
9,600
$18,465
8,000
6,000
$1.94
$3.08
Cost
Requisitions ($175)
Setups ($480)
Inspections ($60)
Total costs (a)
(c)
Total Cost
$7,000
12,000
15,000
Total Cost
$7,000
12,000
15,000
$34,000
Basic ABC has been enhanced by identifying activities as value-added and non-valueadded. Identifying non-value-added activities highlights for managers the activities that
should be reduced or eliminated because they are not essential and they add no value to
the product.
QUESTION 14
20 MARKS
d) Margin of safety.
(1,200 X $150) - $120,000 = $60,000/ $120,000 = 33%
e) Sales dollars and units needed to generate an operating profit of $57,000.
Sales $ = (48,000 + 57,000) / 0.4 = $262,500
Q = FC + Target Profit / CM = (48,000 + 57,000) / 60 = 1,750 units
f) Number of units sold that would produce an operating profit of 15% of sales
dollars.
(4 marks)
Profit = SP VC FC
15%(150X) = (150-90)X 48,000
22.5X = 60X 48 000
48 000 = 60X - 22.5 X
48 000 = 37.5 X
X = 1,280 units