Solution to Midterm Exam

Solution to Midterm Exam - Concordia University John Molson...

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Concordia University Comm 305/4 All Sections Winter 2002 John Molson School of Business Solution to Midterm Exam Question 1 Multiple Choice Solutions (28 marks) Q # 1 B 2 B 3 B 4 D 5 B 6 C 7 C 8 A 9 D 10 B 11 D 12 C 13 C 14 D
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Comm 305/4 All Sections Winter 2002 John Molson School of Business Solution to Midterm Exam Question 2 SOLUTION (22 marks) 1. Predetermined OH Rate = 14,250 ÷ 15,000 = .95 or 95% of Direct labour costs Applied Overhead = .95 X (150,000 + 35,000 + 15,000) = $190,000 2. Job 315 Job 316 Job 317 Total Beginning WIP 32,375 --- ---- 32,375 + Direct materials 150,000 30,000 10,000 190,000 + Direct Labour 150,000 35,000 15,000 200,000 + Applied overhead 142,500 33,250 14,250 190,000 = Total 474,875 98,250 39,250 612,375 Overhead is applied based on .95 of Direct Labour Costs. 3. OH Variance = (90,000 + 43,000 + 60,000) – 190,000 ` = $ 3,000 underapplied. 4. Cost of Goods Sold Schedule: Beginning finished goods inventory (Job 314) $ 55,000 Add: Cost of goods manufactured (Jobs 315 & 316) 573,125 Cost of goods available for sale 628,125 Less: Ending finished goods inventory (Job 316) (98,250) Normal Cost of Goods Sold 529,875 Add: Underapplied overhead 3,000 Adjusted Cost of good sold 532,875 5. Price of Job 315 = 474,875 + 94,975 = $ 569,850 6. a. Ending Direct Materials = 30,000 + 250,000 190,000 = $ 90,000 b. Ending Work in Process = Job 317 = $ 39,250 Total 22 marks
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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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Solution to Midterm Exam - Concordia University John Molson...

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