ca_exm_ma1_2006-03

ca_exm_ma1_2006-03 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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EMA1M06 ©CGA-Canada, 2006 Page 1 of 6 CGA-CANADA MANAGEMENT ACCOUNTING 1 EXAMINATION March 2006 Marks Time: 3 Hours Note: Except for multiple-choice questions, all calculations must be shown to obtain full marks. 30 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 3 marks each Note: Use the following information to answer parts (a) and (b). A company makes upholstered seats for speed boats. It purchases the seatbacks and cushions, and then covers them with thick vinyl. The seatbacks are purchased for $60 per unit and the company uses 100 seatbacks per week. The cost of placing and receiving an order is $89, the annual carrying cost is $10 per unit, and the lead time from placing an order to receiving the seatbacks is 4 weeks. A safety stock of 50 units is on hand. Assume a 52-week year. a. What is the economic order quantity (EOQ) for seatbacks? 1) 152 units 2) 215 units 3) 304 units 4) 962 units b. What is the reorder point for seatbacks? 1) 150 units 2) 354 units 3) 400 units 4) 450 units Continued. ..
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EMA1M06 ©CGA-Canada, 2006 Page 2 of 6 c. A company has the following incomplete production budget data for the first quarter: January February March Expected unit sales 1,000 3,000 4,000 In the previous December, ending inventory was 100 units, which was the minimum required, at 10% of projected sales units in the coming month. What is the expected production in February? 1) 3,000 units 2) 3,100 units 3) 3,400 units 4) 3,600 units d. Which of the following statements describes the treatment of period costs? 1) They will never constitute part of the cost of goods manufactured statement but will always be part of the income statement. 2) They will always be part of the cost of goods manufactured statement. 3) They will only be incurred if the product is made in the current period. 4) They will never constitute part of the cost of goods manufactured statement or be part of the income statement. e. On January 1, 2005, Laut Company’s work in process account had a balance of $36,000. During the year, direct materials costing $70,000 were placed into production. Direct labour cost for the year was $120,000. The predetermined overhead rate for the year was set at 150% of direct labour cost. Actual overhead costs for the year totalled $184,000. Jobs costing $380,000 to manufacture (according to their job cost sheets) were completed during the year. What would the balance in the work in process inventory account be on December 31, 2005? 1) $16,000
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This note was uploaded on 11/15/2010 for the course CGA ma1 taught by Professor ... during the Spring '10 term at York Tech.

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ca_exm_ma1_2006-03 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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