管理会计quiz 2--ch 4 5 8(7页).doc

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1、-管理会计quiz 2-ch 4 5 8-第 7 页QUIZ 2 CH 4/5/8（20 MARKS）1.Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily excursions to teahouses and public parks where they m

2、eet with other bird owners to talk and play mahjong. A great deal of attention is lavished on these birds, and the birdcages are often elaborately constructed from exotic woods and contain porcelain feeding bowls and silver roosts. Gold Nest Company makes a broad range of birdcages that it sells thr

3、ough an extensive network of street vendors who receive commissions on their sales. The Chinese currency is the renminbi, which is denoted by Rmb. All of the companys transactions with customers, employees, and suppliers are conducted in cash; there is no credit.The company uses a job-order costing

4、system in which overhead is applied to jobs on the basis of direct labor cost. At the beginning of the year, it was estimated that the total direct labor cost for the year would be Rmb110,000 and the total manufacturing overhead cost would be Rmb275,000. At the beginning of the year, the inventory b

5、alances were as follows:Raw materialsRmb13,000Work in processRmb30,000Finished goodsRmb65,000During the year, the following transactions were completed:a.Raw materials purchased for cash, Rmb150,000.b.Raw materials requisitioned for use in production, Rmb158,000. (Materials costing Rmb135,000 were c

6、harged directly to jobs; the remaining materials were indirect.)c.Costs for employee services were incurred as follows:Direct laborRmb100,000Indirect laborRmb40,000Sales commissionsRmb22,000Administrative salariesRmb35,000d.Rent for the year was Rmb36,000. (Rmb30,000 of this amount related to factor

7、y operations, and the remainder related to selling and administrative activities.)e.Utility costs incurred in the factory, Rmb90,000.f.Advertising costs incurred, Rmb88,000.g.Depreciation recorded on equipment, Rmb80,000. (Rmb66,000 of this amount was on equipment used in factory operations; the rem

8、aining Rmb14,000 was on equipment used in selling and administrative activities.)h.Manufacturing overhead cost was applied to jobs, Rmb ?.i.Goods that cost Rmb490,000 to manufacture according to their job cost sheets were completed during the year.j.Sales for the year totaled Rmb995,000. The total c

9、ost to manufacture these goods according to their job cost sheets was Rmb550,000.Required:1.Prepare journal entries to record the transactions for the year.2.Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-ac

10、counts. (Dont forget to enter the beginning balances in your inventory accounts.) Compute an ending balance in each account.3.Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.4

11、.Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)（20 MARKS）2.Harwood Company is a manufacturer that operates a job-order co

12、sting system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $380,000 in manufacturing overhead costs and work 47,500 machine-hours.Required:1.Compute the companys predetermined overhead rate.2.Assume

13、that during the year the company works only 45,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts:Manufacturing OverheadWork in Process(Maintenance)47,000?(Direct materials)980,000(Indirect materials)20,000(Direct labor)170,000(Indirect labor)

14、105,000(Overhead)?(Utilities)77,500(Insurance)26,000(Depreciation)91,500Copy the data in the T-accounts above onto your answer sheet. Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts.3.Compute the amount of underapplied o

15、r overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. Prepare a journal entry to close out the balance in this account to Cost of Goods Sold.4.Explain why the manufacturing overhead was underapplied or overapplied for the year.（20 MARKS）3. Contrasting ABC

16、 and Conventional Product CostsSiegel Corporation manufactures a product that is available in both a deluxe and a regular model. The company has made the regular model for years; the deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe mo

17、del, the companys profits have steadily declined. Sales of the deluxe model have been increasing rapidly.Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $3,080,000 in overhead costs would be incurred and the company

18、would produce and sell 10,000 units of the deluxe model and 50,000 units of the regular model. The deluxe model requires 2.0 hours of direct labor time per unit, and the regular model requires 1.0 hours. Materials and labor costs per unit are given below:DeluxeRegularDirect materials cost per unitDi

19、rect labor cost per unitRequired1.Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. Compute the unit product cost for one unit of each model.2.An intern suggested that the company use activity-based costing to cost its products.

20、A team was formed to investigate this idea. . It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed below:EstimatedOverheadActivityActivity Cost Pool and Activity MeasureCostDeluxeRegularTotalPurchase orders (number of

21、 orders)$60,0005001,0001,500Rework requests (number of requests)280,0008002,0002,800Product testing (number of tests)240,0007,0003,00010,000Machine-related (machine-hours)2,500,0004,5008,00012,500$3,080,000Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost po

22、ols.3.Assume that actual activity is as expected for the year. Using activity-based costing, do the following:a.Determine the total amount of overhead that would be applied to each model for the year.b.Compute the unit product cost for one unit of each model.4.Can you identify a possible explanation

23、 for the companys declining profits? If so, what is it?（20 MARKS）4. Cost flows and Unit Product Costs in Activity-Based CostingHunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimat

24、es of cost and activity in the companys five activity cost pools:Activity Cost PoolActivity MeasureEstimated Overhead CostExpected ActivityLabor relatedDirect labor-hours$200,00020,000DLHsProduction ordersNumber of orders$110,0005,000ordersMaterial receiptsNumber of receipts$108,0001,800receiptsRela

25、y assemblyNumber of relays$960,00012,000relaysGeneral factoryMachine-hours$1,260,00070,000MHsRequired1.Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.2.During the year, actual overhead cost and activity were recorded as follows:Activity Cost PoolAct

26、ual Overhead CostActual ActivityLabor related$205,00022,000DLHsProduction orders107,0004,500ordersMaterial receipts112,0002,000receiptsRelay assembly980,00013,000relaysGeneral factory1,300,00073,000MHsTotal overhead cost$2,704,000a.Prepare a journal entry to record the incurrence of actual manufactu

27、ring overhead cost for the year (credit Accounts Payable). Post the entry to the companys Manufacturing Overhead T-account.b.Determine the amount of overhead cost applied to production during the year.c.Prepare a journal entry to record the application of manufacturing overhead cost to Work in Proce

28、ss for the year. Post the entry to the companys Manufacturing Overhead T-account.d.Determine the amount of underapplied or overapplied manufacturing overhead for the year.3.The actual activity for the year was distributed among the companys four products as follows:Actual ActivityActivity Cost PoolP

29、roduct AProduct BProduct CProduct DLabor related (DLHs)7,0001,0008,0006,000Production orders (orders)8009001,1001,700Material receipts (receipts)400800300500Relay assembly (relays)3,5002,0003,0004,500General factory (MHs)16,00026,00017,00014,000a.Determine the total amount of overhead cost applied t

30、o each product.b.Does the total amount of overhead cost applied to the products above tie in to the T-accounts in any way? Explain.（10 MARKS）5 Equivalent Units; Cost ReconciliationWeighted Average MethodMartin Company manufactures a single product. The company uses the weighted-average method in its

31、 process costing system. Activity for June has just been completed. An incomplete production report for the first processing department follows:Quantity Schedule and Equivalent UnitsQuantityScheduleUnits to be accounted for:Work in process, June 1 (materials 80% complete; labor and overhead 60% comp

32、lete)10,000Started into production64,000Total units74,000Equivalent units (EU)MaterialsLaborOverheadUnits accounted for as follows:Transferred to the next department68,000? ? ? Work in process, June 30 (materials 50% complete, labor and overhead 20% complete)6,000? ? ? Total units74,000? ? ? Cost pe

33、r Equivalent UnitTotalWhole CostMaterialsLaborOverheadUnitCost to be accounted for:Work in process, June 1$11,900$6,800$2,100$3,000Cost added by the department107,27053,55022,12031,600Total cost (a)$119,170$60,350$24,220$34,600Equivalent units (b)71,00069,20069,200Cost per EU, (a) (b) + + =Cost Reco

34、nciliationTotalCostCost accounted for as follows:?Required:1.Prepare a schedule showing how the equivalent units were computed for the first processing department.2.Complete the “Cost Reconciliation” part of the production report for the first processing department.（10 MARKS）6. Interpreting A Produc

35、tion ReportWeighted-Average MethodCooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $11.00 each. (The Mexican curre

36、ncy is the peso and is denoted by $.) The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing sys

37、tem.A hastily prepared report for the Mixing Department for April appears below:Quantity ScheduleUnits to be accounted for:Work in process, April 1 (materials 100% complete; conversion 95% complete)11,000Started into production150,000Total units to be accounted for161,000Units accounted for as follo

38、ws:Transferred to the next department155,000Work in process, April 30 (materials 100% complete, conversion 30% complete)6,000Total units accounted for161,000Total CostCost to be accounted for:Work in process, April 1$22,810Cost added during the month599,000Total cost to be accounted for$621,810Cost

39、ReconciliationCost accounted for as follows:Transferred to the next department$604,500Work in process, April 3017,310Total cost accounted for$621,810Cooperative San Jos has just been acquired by another company, and the management of the acquiring company wants some additional information about its

40、operations.Required:1.What were the equivalent units for the month?2.What were the costs per equivalent unit for the month? The beginning inventory consisted of the following costs: materials, $19,450; and conversion cost, $3,360. The costs added during the month consisted of: materials, $375,000; a

41、nd conversion cost, $224,000.3.How many of the units transferred to the next department were started and completed during the month?4.The manager of the Mixing Department, anxious to make a good impression on the new owner, stated, “Materials prices jumped from about $1.80 per unit in October to $2.50 per unit in April, but due to good cost control I was able to hold our materials cost to less than $2.50 per unit for the month.” Should this manager be rewarded for good cost control? Explain.