MidtermSolutionFall2004

MidtermSolutionFall2004 - Suggested solutions Midterm Exam...

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Question 1 – Solution (18 marks) 1. D (1 mark) 2. A (2 mark) 3. C (1 mark) 4. D (1 mark) 5. D (1 mark) 6. C (2 mark) 7. D (1 mark) 8. D (2 mark) 9. C (1 mark) 10. D (1 mark) 11. B (2 mark) 12. B (2 mark) 13. C (1 mark) 1
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(20 marks) (a) Job-Order Cost Sheets Arcade#1 Arcade#2 Arcade#3 Total Direct material costs $400,000 ($200,000X2) $346,000 ($86,500X 4) $15,000 $761,000 Direct labour costs $200,000 ($100,000X2) $264,000 ($66,000 X 4) $10,000 $474,000 Applied OH costs $300,000 (10,000 h x 2 X15) $262,500 (4,375 h X 4 X 15) $15,000 (1,000 X 15) $577,500 Total $900,000 $872,500 $40,000 $1,812,500 ( 6 marks) (b) Franconia Corporation Statement of cost of goods manufactured For the year ended December 31,2003 Beginning balance direct material inventory $89,000 Add: Purchases of direct material in 2003 $731,000 Total direct material available $820,000 Less: Direct material inventory 12/31/2003 $59,000 Direct material used in 2003 $761,000 Direct labour incurred $474,000 Actual manufacturing overhead: Indirect labour cost incurred $150,000 Property tax on factory $90,000 Depreciation on factory building $125,000 Indirect material used $45,000 Depreciation on factory equipment $60,000 Insurance on factory and equipment $40,000 Utilities for factory $70,000 Total actual overhead $580,000 Less: Underapplied overhead $2,500 Applied manufacturing overhead $577,500 Current Manufacturing costs $1,812,500 Add: Beginning balance Work-in-process $0 Total manufacturing costs $1,812,500 Less: work-in-process inventory 12/31/2003 (Arcade#3) $40,000 Cost of goods manufactured in 2003 (Arcade#1+ Arcade#2) $1,772,500 ( 10 marks) (c) Franconia Corporation Statement of cost of goods sold For the Year ended December 31,2003 Finished goods inventory 12/31/2002 $35,000 Add cost of goods manufactured in 2003 $1,772,500 Goods available for sales $1,807,500 Less: Finished goods inventory 12/31/2003 $35,000 Unadjusted cost of goods sold
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MidtermSolutionFall2004 - Suggested solutions Midterm Exam...

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