Question

notes, mathematical tables, dictionaries or other study aid unless all I WILL appears on the exam, to have in his/her possession cameras, radios (radios with headsets), tape recorders, papers, cell phones, or any other communication device which has not been previously authorized in writing Statement to be signed by the student: I have read the text on academic integrity and I pledge not to have committed or attempted to commit academic fraud in this examination. Signed: Note: an examination without this signed statement will not be graded and will receive an exam grade of zero. QUESTION L- (20 POINTS) Questions 1 to 10 are worth 2 marks each Choose the best answer for each of the multiple choice questions.. Please circle the appropriate answer in the exam booklet and fill in your answers on the Scantron card provided. whef hune, AB Company of raw materials, she finished good O 1) During the month of June, AB Company incurs $17,000 of direct labour and $8,500 of manufacturing overhead, and purchases $15,000 of raw materials. Between the beginning and the end of the month, the raw materials inventory increases by S2,000, the finished goods inventory increases by S1,500, and the work-in-process inventory decreases by $3,000. What is the cost of goods manufactured? AN M 13 000 a) $43,500. BGN DM b) S40,500. Purchase om 15ooo c) $38,500. END DM 2000 $41,500. None of the above ADD: DR 17 000 LESS: MOH 2) If a company's fixed cost rise by $10,000, which of the following will be true? 8.500 21 500 the break-even point will decrease the variable cost ratio will increase W IP the break-even point will be unchanged 3 000 EWIP the variable cost ratio will decrease e) the contribution margin ratio will be unchanged the contri COGM Total b) 24 500

Answer 1

Answer-1:

Option d) is the correct answer.

Explanation:

Beg. Bal. of RM + Purchase - End. Bal. of RM = RM used
RM used = $15,000 - 2,000 = 13,000
RM used	$           13,000
Direct labor cost	17,000
MOH cost	8,500
Manufacturing cost	38,500
Add: Decrease in WIP inventory	3,000
Cost of goods manufactured	41,500

Answer-2:

Option e) is the correct answer.

Contribution margin ratio will be unchanged.