ca_exm_ma1_2006-06

ca_exm_ma1_2006-06 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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EMA1J06 CGA-Canada, 2006 Page 1 of 5 CGA-CANADA MANAGEMENT ACCOUNTING 1 EXAMINATION June 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 a. When distinguishing between fixed costs and variable costs, which of the following statements is true? 1) As production rises, variable costs per unit will fall. 2) As production rises, total fixed costs will rise. 3) As production falls, fixed costs per unit will rise. 4) As production falls, variable costs per unit will rise. b. Losse Company’s manufacturing overhead account showed a $20,000 under-applied overhead balance on December 31. The ending balances in other accounts showed the following amounts of applied overhead: Work in process $ 80,000 Finished goods $ 120,000 Cost of goods sold $ 200,000 If the company allocates the under-applied overhead among cost of goods sold, work in process, and finished goods, what would the amount allocated to work in process be? 1) $3,200 2) $3,600 3) $4,000 4) $8,000 c. Jobs are completed and the related job cost sheets total to $250,000. What account will be debited? 1) Manufacturing overhead 2) Cost of goods sold 3) Work in process 4) Finished goods d. In July, BigBurgers Inc. served 5,000 burgers and was billed $500 for electricity by the utility company. In August, the company served 5,500 burgers and the electricity bill was for $520. Using the high/low method, what is the estimated fixed cost of electricity per month? 1) $ 20 2) $ 300 3) $ 320 4) $ 520 Continued. ..
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EMA1J06 CGA-Canada, 2006 Page 2 of 5 Note: Use the following information to answer parts (e) and (f). Last month, the machining department of Metal Company started 10,000 units into production. The department had 3,000 units in process at the beginning of the month and these units were 50% complete with respect to conversion costs. There were 4,000 units in process at the end of the month and these units were 40% complete with respect to conversion costs. A total of 9,000 units were completed and transferred to the next department during the month. e. Under the weighted-average method, what would the equivalent units of production for conversion costs for the month be? 1) 9,900 2) 10,500 3) 10,600 4) 11,500 f. Under the FIFO method, what would the equivalent units of production for conversion costs for the month be? 1)
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ca_exm_ma1_2006-06 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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