Required: Prepare a schedule of cash collections from sales by month and in total for the first quarter 2015. [14 marks] [TOTAL: 20 MARKS] Question 2 One-A Production Company is the producer and distributor of grade A metal roofs for residential and commercial needs. It has the following cost structure for its operations in 2014: Direct material $9 per unit Direct labour $7 per unit Variable overhead: - Manufacturing costs $4 per unit - Selling and administrative costs $7,000 Fixed overhead: - Manufacturing costs $10,000 - Selling and administrative costs $6,000 Sales 3,500 units Unit selling price $30 During 2014, the company produced 4,000 pieces of the metal roofs. Required: a. Prepare an income statement for One-A Production Company for the year ended 31 December 2014 using: i. the absorption costing method. [8 marks] ii. the variable costing method. [9 marks] b. Explain the difference between both income amounts. [3 marks] [TOTAL: 20 MARKS]
BMAC5203/JULY2014/HUTECH/KK 3 PART B INSTRUCTION: 1. THERE ARE FIVE (5) QUESTIONS IN THIS PART. 2. ANSWER THREE (3) QUESTIONS ONLY. Question 1 a. What is underapplied and overapplied overhead? What disposition is made of these amounts at the end of the period? [5 marks] b. Super Care Corporation has provided the following data concerning manufacturing operations in March 2015: Purchase of raw materials $30,000 Direct labour $58,000 Indirect materials included in manufacturing overhead $5,000 Manufacturing overhead applied to work-in-process $87,000 Underapplied overhead $4,000 The movement of inventories during the month resulted in the following balances: Inventories Beginning Ending Raw materials $12,000 $18,000 Work-in-process $56,000 $65,000 Finished goods $35,000 $42,000 Required: i. Prepare a schedule of cost of goods manufactured for the month of March 2015. [10 marks] ii. Prepare a schedule of cost of goods sold for the month of March 2015. [5 marks] [TOTAL: 20 MARKS]
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- Summer '13
- Cost Accounting