SOLUTION Midterm Exam 2

SOLUTION Midterm Exam 2 - Concordia University John Molson...

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Concordia University Comm 305/2 Fall 2003 John Molson School of Business Solution to Midterm Exam QUESTION 1 ANSWER KEY Question Answer Marks 1 C 1 2 D 1 3 A 1 4 D 2 5 A 2 6 D 1 7 A 2 8 D 2 9 B 2 10 D 2 11 D 2 12 C 1 13 B 1 (Total 20 MARKS)
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Concordia University Comm 305/2 Fall 2003 John Molson School of Business Solution to Midterm Exam Question 2 Suggested Solution : 1. Downstream Company Statement of Cost of Goods Manufactured For the Month Ended April 30, XX Direct Materials: Raw materials inventory, beginning $ 4,800 Add: Purchases of raw materials 28,000 Total raw materials available $ 32,800 Deduct: Raw materials inventory, ending (7,984) Raw materials used in production 24,816 Less: indirect materials included in OH (5,800) $ 19,016 Direct Labour 18,200 Manufacturing overhead applied to WIP (3 X 4,400 DLH ) 13,200 Total manufacturing costs 50,416 Add: Beginning work in process inventory 7,700 58,116 Less: Ending work in process inventory (10,116) * Cost of goods manufactured 48,000 Predetermined OH rate = 151,200 / 50,400 = $3 per DLH. * Ending WIP = 2,400 + 4,500 + (3 X 1,072) = $10,116 2. Downstream Company Statement of Cost of Goods Sold For the Month Ended April 30, XX Finished goods inventory, beginning $ 8,400 Add: Cost of goods manufactured 48,000 Cost of goods available for sale 56,400 Deduct: Finished goods inventory, ending (6,600) Unadjusted Cost of Goods Sold 49,800 Add: Underapplied overhead 500 * Adjusted Cost of good sold 50,300 Applied OH (Computed Above) = $13,200 Actual overhead = 5,800 + 5,400 + 2,500 = $13,700 Under-applied OH 500
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Concordia University Comm 305/2 Fall 2003 John Molson School of Business Solution to Midterm Exam Question 3 Suggested Solution Azucar Company Option A)
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SOLUTION Midterm Exam 2 - Concordia University John Molson...

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