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

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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
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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
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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
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Concordia University COMM 305/4 Winter 2004 John Molson School of Business                                                                                                   Solution to Midterm Exam     QUESTION 2
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This note was uploaded on 04/01/2010 for the course JMSB comm 305 taught by Professor Marivot during the Winter '10 term at Concordia Canada.

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

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