ACC512

Sample Exam A

Example answer by Tim Richardson. Not yet checked by anyone else. 09/07/99

Part B

Question B1

Assume normal costing.
COGS = 45,000.
Direct mtls = 16,700

dir mtl purchased = 5400
dir mtl. ending = 2700
DM: beg + purchases -ending = used
       beg + 5400 - 2700 = 16,700
B = 16,700 + 2700 - 5400
  = 14,000

1. Balance Dir Mtls Ctl Nov 1: $14,000

Fin goods ending? COGS = cost of goods manuf + beg FG - end FG
45,000 = 76,000 + 1450 - EFG
EFG = 76,000 + 1450 - 45000
    = 32450

2. Ending fin goods: $32,450

3. labor rate = $6500/500 = $13
3. labor incurred = 1700 * 13 = $22,100

Appl overhead = 2.5 * DL = 2.5 * 22,100
              = 55,250

4. actual overhead = 55,250 - 780
                = $54,470

5. Beg Bal + Cr - Dr = Ending
Cr = indirect + direct = 87 + 22100
Dr = actually paid 47,560
Ending = 3780 (Cr)
=> Beg Bal + 22187 - 47560 = 3780
   Beg Bal = 3780 + 47560 - 22187
5           = $29,153

6. Ending WIP
has 500 hrs direct labor
$4500 direct material
cost => 4500 + 500*13 + (500*13)* 2.5
    = $27,250

7. COGM = DM used + dir labor + indirect Lab + overhead + change in WIP
76,000 = 16,700 + 22,100 + 87 + 55250 + change in WIP
change in WIP = 76000 - 16700 - 22100 -87 - 55250
              = -18137
Beg - ending WIP = -18137
7. Beg Wip  = $9113