Mid-Term B Solution.xls

Question 2 (25 marks) EQUIVALENT UNITS physical transferred units in DM Conversion units to account for WIP ending balance 3000 3000 1000 completed 21000 21000 21000 21000 total 24000 24000 21000 22000 3 marks 2 marks 2 marks 2 marks 9 marks costs cost to account for transferred-in $70,350 $70,350 WIP beginning balance$26,730 $14,970 $11,760 manufacturing cost ### $40,635 $87,900 total ### $85,320 $40,635 $99,660 4 marks 2 marks 2 marks 2 marks 10 marks cost/EU $10.02 $3.56 $1.94 $4.53 1 mark 1 mark 1 mark 3 marks COGM ### $74,655 $40,635 $95,130 WIP ending balance $15,195 $10,665 $0 $4,530 total ### 3 marks

Question 3 (25 marks) DM inventory WIP finished goods COGS J315 J314 J316 J315 J315 J314 J314 J317 J316 J316 J315 J315 J317 J316 DM inventory WIP finished goods COGS $30,000 $32,375 $55,000 ### ### ### ### ### $55,000 $55,000 2 marks ### $98,250 $98,250 $474,875 ### 2 marks ### $3,000 2 marks $90,000 $39,250 $98,250 ### 1 mark 1 mark 1 mark MOH J315 J316 J317 total $90,000 Beginning balance $43,000 DM $3,125 $3,125 $60,000 ### DL $15,000 $15,000 $3,000 underapplied MOH $14,250 $14,250 95% 3 marks ### ### 3 marks Total $32,375 $32,375 manufacturing costs DM ### $30,000 $10,000 ### DL ### $35,000 $15,000 ### J315 MOH ### $33,250 $14,250 ### 95% COGS ### Total ### $98,250 $39,250 ### markup $94,975 20% selling price ### Ending balance DM ### $30,000 $10,000 ### 2 marks DL ### $35,000 $15,000 ### MOH ### $33,250 $14,250 ### Total ### $98,250 $39,250 ###

Question 4 (15 marks) estimated expected activity centre cost driver overhead activity rate labour related DLH $280,000 40,000 $7.00 1 purchase orders number of orders $96,000 1,200 $80.00 1 product testing number of tests $420,000 3,500 $120.00 1 template etching number of template $315,000 10,500 $30.00 1 general factory MH $810,000 90,000 $9.00 1 total ### PMOHR $21.34 1 unit product costing using ABC DM 4 $75.00 $300.00 0.5 DL 60 $20.00 ### 0.5 MOH labour related 60 $7.00 $420.00 1 purchase orders 2 $80.00 $160.00 0.5 product testing 1 $120.00 $120.00 0.5 template etching 15 $30.00 $450.00 0.5 general factory 45 $9.00 $405.00 0.5 subtotal ### unit product cost ### 1 markup cost ### 40% 1 selling price ### 1 traditional unit product cost DM $300.00 0.5 DL ### 0.5 MOH 45 $21.34 $960.50 1 unit product cost ### 1 markup $984.20 40% 1 selling price ### 1 cause effect relationship 2

Question 5 (15 marks) month units MOH high july 3,000 $8,500 low april 9,000 $23,500 slope $2.50 variable 3 intercept $1,000 fixed 2 prime conversion costs costs DM 4,800 $1.50 $7,200 $7,200 DL 4,800 $0.50 $2,400 $2,400 $2,400 MOH fixed 4,800 $0.21 $1,000 2 variable 4,800 $2.50 $12,000 2 subtotal $13,000 $13,000 total manufacturing costs $22,600 2 $9,600 2 15400 2 total 15