ca_exm_ma1_2007-06

ca_exm_ma1_2007-06 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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EMA1J07 ©CGA-Canada, 2007 Page 1 of 7 CGA-CANADA MANAGEMENT ACCOUNTING 1 EXAMINATION June 2007 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. The accounts at year end of Hippo Manufacturing Company contained the following information: Finished goods (FG) had one completed job that had not been sent out to the customer. The total cost of $280,000 for this job included $48,000 in applied manufacturing overhead. Work-in-process (WIP) inventory had a balance of $750,000, which included $92,000 in applied manufacturing overhead. Cost of goods sold (COGS) for the year was $3,070,000, of which $460,000 is applied manufacturing overhead. The manufacturing overhead account had a debit balance of $300,000 remaining after overhead had been applied using the predetermined rate. What is the most accurate disposition of the remaining balance in the manufacturing overhead account? 1) To debit work-in-process inventory by $46,000, debit finished goods inventory by $24,000, and debit cost of goods sold by $230,000 2) To debit cost of goods sold by $300,000 3) To debit work-in-process inventory by $75,000, finished goods inventory by $75,000, and cost of goods sold by $75,000 4) To credit work-in-process inventory by $46,000, credit finished goods inventory by $24,000, and credit cost of goods sold by $230,000 b. The following describes the cost components of a costing system and their relationship to each other: Beginning inventory + Direct labour + Direct materials + Manufacturing overhead – Finished goods = Ending inventory. Which of the following best describes the costing system(s) that these components belong to? 1) Job-order costing system 2) Process costing system 3) Activity-based costing system 4) Job-order costing system, process costing system, and activity-based costing system Continued. ..
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EMA1J07 ©CGA-Canada, 2007 Page 2 of 7 Note: Use the following information to answer parts (c) to (e). Assume that the cost drivers for each department are as follows: Department A Kilowatt hours (kwh) Department B Square metres (sq.m.) Department C Number of employees Department X Machine hours (MH) Department Y Direct labour hours (DLH) c. Which service department should be allocated first using the step method of allocation?
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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_2007-06 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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