Question

QUESTION 2 (16 MARKS) A. A number of cost and measures of activity are listed below: Cost Descriptions Cost of heating a hardware store Windsheild wiper blades installed on autos Possible Measure of Activity RM Fixed/Variable at an auto assembly plant 3. Cost of tomato sauce used at a pizza shop Cost of shipping bags of fertilizer to a customer at a chemical plant Number of autos assembled Pizzas cooked Bags shipped Cost of electricity for production equipment at the shoe manufacturer Cost of renting production equipment on a monthly basis at a shoe manufasturer Cost of vaccine used at a clinic paonpoad saoys Shoes produced Vaccines 8. Cost of sales of hardware store 6. Receptionist's wages at dentist's office 10 Salary of production manager at a snowboard manufacturer administered Sales in RM Number of patients Snowboards paonposd Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed. Put your answers in the column provided. (5 marks) B. A number of cost are listed below: ANSWER Cost Objects A particular personal computer A particular residential area Cost Descriptions Supervisor's wages in a computer manufacturing facility 2 Salary of president of a residential construction company Cost of tongue depressors used in an outpatient clinic at a hospital The outpatient clinic The auto repair shop 4. Cost lubricant oil used at the auto repair shop of an automobile dealer 5. Manager's salary at anhotel run by a chain of hotels A particular hotel poom anɔos oj pasn smaos jo įso) A particular yacht trim in a yacht manufacturer Accounting professor's salary The Accounting Department Page 5 of 8

Answer 1

Nana Corporation Requirement 1 (in RM) Schedule of Cost of Goods Manufactured For the Completed year Direct materials: Raw materials inventory, beginning Add:Purchases of raw materials Raw materials available for use Deduct:Raw materials inventory, ending Raw materials used in production Direct labor Manufacturing overhead Total manufacturing costs Add:Work in process inventory, beginning 8000 192000 200000 - 12000 188000 36000 120000 344000 20000 364000 - 16000 348000 Deduct:Work in process inventory, ending Cost of goods manufactured Requirement 2 520000 Statement of Income For the Completed year Sales Cost of goods sold: Finished goods inventory, beginning Add:Cost of goods manufactured Goods available for sale Deduct:Finished goods inventory, ending Gross margin Selling and administrative expenses Net operating income 348000 348000 36000 312000 208000 152000 56000 Sales in units = 520000 / 50 = 10400 Closing stock FG = Production - Closing Stock = 11600 - 10400 = 1200 FG in RM = ( 348000 / 11600) x 1200 = 36000