Midterm SOLUTION

# Midterm SOLUTION - Concordia University COMM 305/4 Winter...

This preview shows pages 1–5. Sign up to view the full content.

Concordia University COMM 305/4 Winter 2004 John Molson School of Business                                                                                                   Solution to Midterm Exam     QUESTION 1 20 MARKS No. on Test Correct Answer Marks 1 A 2 2 D 1 3 A 2 4 C 2 5 C 2 6 D 1 7 B 2 8 B 1 9 D 1 10 A 2 11 A 2 12 D 2

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Concordia University COMM 305/4 Winter 2004 John Molson School of Business                                                                                                   Solution to Midterm Exam     Question 2 Suggested Solution 1. a. b. Absorption Costing Variable Costing Year 1 Year 2 Year 1 Year 2 Direct material . ...................................... \$ 5 \$ 5 \$5 \$ 5 Direct labor . ........................................... 2 2 2 2 Variable overhead . ................................ 3 3 3 3 Fixed manufacturing overhead costs: \$300,000 ÷ 150,000 units   NA \$300,000 ÷ 100,000 units       3    NA Unit product cost        12        13         10       10    Max 5 marks
Concordia University COMM 305/4 Winter 2004 John Molson School of Business                                                                                                   Solution to Midterm Exam     2.a A TKINS C RISPY R USSETS I NC . A BSORPTION -C OSTING I NCOME S TATEMENT F OR THE Y EAR E NDED D ECEMBER 31, 2003 Year 1 Year 2 Sales revenue (125,000 units sold at \$15 per unit) . ................................. \$1,875,000 \$1,875,000 Less: Cost of goods sold*. ........................................... 1,500,000 1,600,000 Gross margin ............................................................. \$ 375,000 \$ 275,000 Less: Selling and administrative expenses: Variable (at \$1 per unit) . ................................. 125,000 125,000 Fixed . .............................................................. 50,000 50,000 Net income . ................................................................ \$ 200,000 \$ 100,000 * Cos t of goods Sold Year 1 Year 2 Beginning Inventory 0 300,000 Add: Cost of goods Manufactured (150,000 X 12). ................................................................. (100,000 X 13). ................................................................. 1,800,000 1,300,000 Less: Ending Inventory (25,000 X 12) (300,000) 0 Cost of goods sold 1,500,000 1,600,000 Max 8 marks

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Concordia University COMM 305/4 Winter 2004 John Molson School of Business                                                                                                   Solution to Midterm Exam     QUESTION 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 9

Midterm SOLUTION - Concordia University COMM 305/4 Winter...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online