Exam Fall 2008 - MGT223 Final exam – solutions December 2008 Part A 15 marks 1 a 2 a 3 b 4 b 5 b 6 d 7 d 8 b 9 c 10 c 11 b 12 c 13 b 14 c 15 b

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Unformatted text preview: MGT223 Final exam – solutions December 2008 Part A ( 15 marks) 1. a 2. a 3. b 4. b 5. b 6. d 7. d 8. b 9. c 10. c 11. b 12. c 13. b 14. c 15. b Part B Problem #1 (10 Marks) Beginning inventory 32,000 0.5 Purchases 48,150 * *- ending inventory (28,500) 0.5- indirect materials (1,827) 1 49,823 Purchases Accounts payable ending 43,750 0.5 + cash payments 28,000 0.5- accounts payable, beginning (23,600) 0.5 48,150 * * 1 Direct Labour Payroll 75,600 0.5- Indirect labour (12,500) 0.5 63,100 Costs transferred to finished goods Finishd goods, ending 14,000.0 0.5 cost of goods sold '(January 1 - September 30 266,000.0 (January 1 - August 31 (226,000.0) 40,000.0 0.5 Finished goods, beginning (10,550.0) 0.5 43,450.0 1 Overhead applied Ending manufacturing overhead (Sept 30) 141,600.0 beginning manufacturing overhead (Aug 31) (125,800.0) 0.5 Overapplied overhead 950.0 0.5 16,750.0 Fire loss Work in process inventory 59,500 1 Direct material used 49,823 Direct labour used 63,100 Overhead applied 16,750 Less: goods transferred to finished goods (43,450) 145,723 10 Part B – Problem #2 (10 marks) 1. Actual Quantity of Input, at Actual Price Actual Quantity of Input, at Standard Price Standard Quantity Allowed for Output, at Standard Price (AQ x AP) (AQ x SP) (SQ x SP) 10,920 metres x $4.48 per metre* 10,000 metres** x $4.48 per metre* $45,600 = $48,922 = $44,800 ↑ ↑ ↑ Price Variance, $3,322 F Quantity Variance, $4,122 U Total Variance, $800 U * $22.40 ÷ 5.0 metres = $4.48 per metre ** 2,000 sets x 5.0 metres per set = 10,000 metres Alternative Solution: Materials price variance = AQ (AP – SP) 10,920 metres ($4.176 per metre* – $4.48 per metre) = $3,320 F *$45,600 ÷ 10,920 metres = $4.176 per metre Materials quantity variance = SP (AQ – SQ) $4.48 per metre (10,920 metres – 10,000 metres) = $4,122 U Problem 10-28 (continued) 2. Actual Hours of Input, at the Actual Rate Actual Hours of Input, at the Standard Rate Standard Hours Allowed for Output, at the Standard Rate (AH x AR) (AH x SR) (SH x SR) 2,800 hours x $6.00 per hour* 3,000 hours** x $6.00 per hour* $18,200 = $16,800 = $18,000 ↑ ↑ ↑ Rate Variance, $1,400 U Efficiency Variance, $1,200 F Total Variance, $200 U * 2,850 standard hours ÷ 1,900 sets = 1.5 standard hours per cover, * 2,850 standard hours ÷ 1,900 sets = 1....
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This note was uploaded on 02/02/2010 for the course MANAGEMENT A taught by Professor X during the Spring '10 term at University of Toronto- Toronto.

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Exam Fall 2008 - MGT223 Final exam – solutions December 2008 Part A 15 marks 1 a 2 a 3 b 4 b 5 b 6 d 7 d 8 b 9 c 10 c 11 b 12 c 13 b 14 c 15 b

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