管理会计复习提纲

PRACTICE QUESTIONS PART A, LECTURE 1QUESTION 3Answer the five questions below which relate to the following data: A firm had the following per unit costs for a period in which it expected to produce 1,000 units: DM $20, DL $30, Variable OH $20, Fixed OH $10, Variable selling costs $5 per unit. Answer the following costs related to the data:(a) Calculate the prime costs per unit.(b) Calculate the conversion costs per unit.(c) Calculate the product (inventoriable) cost per unit under absorption costing.(d) Calculate the variable product (inventoriable) cost per unit under absorption costing.(e) Calculate the period costs per unit.(f) Calculate the total expected costs if the firm produced and sold 1,100 units. Answer(a)Prime cost = DM + DL = $50 ($20 + $30)(b)Conversion cost = DL + OH = $60 ($30 + $20 + $10)(c)Product (inventoriable) cost under absorption costing = all manufacturing costs, i.e. $80 ($20 + $30 + $20 + $10)(d)Variable product (inventoriable) cost under absorption costing = remove fixed OH of $10 per unit, therefore $70.(e)Period cost = all costs that are not manufacturing costs. Here, only selling costs, therefore $5.(f)Answer is $92,500, calculated as follows. Add total of expected manufacturing andnon-manufacturing costs. Note that the fixed and variable costs are treated differently:SOLUTIONS TO PRACTICE QUESTIONS, PART A LECTURE 2QUESTION 1Production budget for the month of AprilRequired for sales 1,000+ desired ending inventory 60 (5% x 1,200)1,060- opening inventory 52*Required production 1,008* If you did not know the actual inventory of products at the beginning of April (whether you do or not depends on how far in advance you are preparing the budgets), you would use the estimate for the beginning of April (which is the same as the end of March, i.e. 5% x 1,000 = 50).Direct Materials purchases budget for the month of April (in kgs)Required for production 2,016 (1,008 units x 2 kg)+ desired ending inventory 2002,216- opening inventory 125**Required purchases of material 2,091 kg** As before, if you did not know the actual inventory of materials at the beginning of April, you would use the estimate for the beginning of April (which is the same as the end of March, i.e. 250 kg)QUESTION 3Flexible budget formula is $100,000 + $40 per unit, therefore with no changes, budgeted costs would be: $100,000 + (20,000 x $40)= $900,000The effect of using overtime is that the variable cost will be greater than $40 per unit. Without further information, all we can conclude is that the budgeted amount will be some amount greater than $900,000.QUESTION 4Av. CM = (.1 x $4) + (.7 x $6) + (.2 x $2)= (.4 + 4.2 + .4) = $5BE point = 6,000 = 1,200 units in total, which is:5120 units of product 1 (10%)840 units of product 2 (70%)240 units of product 3 (20%)QUESTION 5(a)Cost A is not fixed, as it changes across activity levels. Not variable, because it is a different amount per unit at the different activity levels. Therefore it is mixed.Cost B is a fixed cost as in total it remains the same in total across different activity levels. Because Cost C is constant per unit across different activity levels, the total cost will vary in proportion to activity level, therefore it is a variable cost.(b)High cost – low costHigh activity – low activity$3,000-$2,0002,000-1,000= $1,000/1,000= $1 per unit.(c)Flexible budget formula for Cost A is $1,000 + $1 per unit.SOLUTIONS TO PRACTICE QUESTIONS, PART A, LECTURE 3QUESTION 2The following are summaries of the job cards for a particular period:Assume that only two jobs (#101 and #103) are finished, and job #103 is sold.(a) What is the balance of the WIP a/c and FG a/c at the end of the period, and the total expense for the period?(b) Is it possible to tell the total DM cost incurred for the period. If so, what is the amount?(c) Is it possible to tell the total DM cost EXPENSED during the period. If so, what is the amount?ANSWER(a) Identify which jobs are at different stages of the manufacturing and selling cycle, and therefore in each of the different accounts. Total the costs of those jobs. The total of the costs on the job cost sheets will be the balances of WIP and FG, and the total expense (amounta journal entry for all goods finished during the period.. However, at a particular point of time all jobs can be in one place only: either they are incomplete (WIP); finished and not sold (FG); or finished and sold (COGS).(b) Because the job cards indicate the opening balance for the period, all costs incurred in a previous period would be in the opening balance. Any costs itemised as DM, DL and OH on the job card are costs incurred this period. Therefore the cost of DM incurred for the periodis the total of the DM column, which is $96,000.(c)It would always be possible to find out the amount by going back through all the job cost sheets. In this example it is very easy to do because the opening balance is zero. Therefore, the amount of DM cost expensed during the period is the DM cost of any jobs sold. Job #103 was sold, and the DM cost of job #103 was $50,000.QUESTION 3Assume a firm started 5 jobs in a period. A summary of the costs on the job cost sheets•Jobs 1, 2, 3 and 4 are finished in the period.•Jobs 1 and 2 are sold in the period.•Opening balances are zeroRequired:(a)Show the completed WIP, FG and COGS accounts.(b)What is the total amount of OH that has been applied during the period?(c)What is the amount of OH in the WIP account balance at the end of the period? ANSWER(a)WIPMaterials 150 FG 420 (jobs 1-4)Wages 200 Balance 180 (job 5)OH 250600 600FGWIP 420 COGS 150 (jobs 1-2)Balance 270 (jobs 3-4)420 420COGSFG 150(b) The total OH applied is found by adding OH on the job cost sheets for all jobs worked, i.e. $250.(c) The balance in any account consists of DM, DL and OH costs incurred on all jobs at that stage. There is only one job unfinished (job #5) therefore the balance in WIP of $180represents the costs incurred on job#5. We know from the job card that $70 of that cost is OH applied.QUESTION 4The following budgeted and actual results for a period relate to Dustin Pty Ltd, a firm which employs normal absorption job costing and applies OH using DL cost as the cost driver.Direct Manufacturing labour costs Manufacturing overhead costs Budget for 20071,000,0001,750,000Actual Results for 2007980,0001,862,000(a)Calculate the firm’s budgeted OH rate.(b)Calculate the cost of a particular job, job #323, which incurs $40,000 DM and $30,000 DL.(c)Calculate the amount of under/over applied overhead for the entire firm for the period, i.e. not just for job #323.ANSWER(a) 1,750,0001,000,000= 175% of DL cost or $1.75 for every dollar of DL.(b)Normal cost of job #323:DM $ 40,000DL $ 30,000OH $ 52,500 (175% of DL)$122,500(c)Total actual OH = $1,862,000Total applied OH = $1,715,000 (175% x $980,000)Under applied $ 147,000PRACTICE QUESTIONS, PART A, TOPIC 4QUESTION 2Calculate OH applied for the period given the following selected information:Budget information:Activity level 3,000 DL hoursV OH rate $3 per DL hourBudgeted total OH costs for actual activity level $15,900Actual data:Activity level 3,300 DL hoursANSWEROH applied will be actual hours worked x budgeted OH rates (both fixed and variable). What do we know?Actual hours worked = 3,300Variable OH rate = $3 per DL hourWhat do we need to find?Fixed OH rate –this is not given. Recall that fixed OH rates can only be calculated at budgeted activity level. We know the budgeted activity level is 3,000, therefore the fixed OH rate will equal:Budgeted F OH (at budgeted activity)Budgeted activity level, i.e. 3,000Therefore, we need the budgeted F OH at budgeted activity level. But it is not given. All we are told is the total budgeted OH for actual activity, i.e. for 3,300 hours. We need to use this information to determine budgeted F OH, as follows:Total budgeted OH at 3,300 hours = $15,900Variable budgeted OH at 3,300 hours = 3,300 x $3 = $9,900Therefore fixed budgeted OH at 3,300 hours = $15,900 - $9,900 = $6,000But if budgeted fixed OH at 3,300 hours is $6,000, budgeted fixed OH at 3,000 hours is also $6,000, so now we can work out the fixed OH rate, i.e.$6,000/3,000 = $2 per DL hour.We can now calculate OH applied, i.e. 3,300 x ($3+$2) = $16,500QUESTION 4A manufacturing firm has a direct labour cost of $25 per direct labour hour. Where jobs are worked in overtime hours, the cost is time-and-a-half, i.e. $37.50 per direct labour hour. A particular job was worked on for 8 hours, 4 hrs in normal time, and 4 hrs overtime.(a) What is the amount of overtime premium per DL hour?(b) What is the amount of overtime premium related to the job?(c) Show the journal entry for the labour cost assuming:(i) the overtime was necessary because of the particular nature of the job.(ii) the overtime was necessary because of poor scheduling by the firm.Answer(a)The premium is $12.50 per DL hour.(b)4 hours x $12.50 = $50.(c) (i)WIP DR 250Wages and Salaries Payable CR 250(in these circumstances the overtime premium is charged to the job, and therefore ends up in the WIP account, and eventually in FG account).(ii)WIP DR 200OH DR 50Wages and Salaries Payable CR 250(in these circumstances the overtime premium is not charged to the job. Only the ordinary costs per hour ($25) for the hours worked on the job are charged to WIP.)SOLUTIONS TO PRACTICE QUESTIONS, PART A, TOPIC 5(a) Calculate the labour rate variance and the labour efficiency variance, using either tables or formulae.(b) Show the journal entry required to record labour information for the period.(c) Calculate the material price variance and the material efficiency variance (using either tables or formulae) assuming the MPV is isolated on purchase.(d) Show the journal entries for materials purchased and used.(e) Repeat (c) and (d) assuming MPV is isolated on usage. This means you are to recalculate the MPV, and show the journal entries for purchase and use of material for this option.AnswerUsing formulae:LRV = 770 x ($32 - $30) = +$1,540 = $1,540 ULEV = $30 x (770 – 725) = -$1,350 = $1,350 UPart (c)Using formulae:MPV = 4,000 x ($10.50 - $10) = +$2,000 = $2,000 UMEV = $10 (3,100 – 2,900) = +$2,000 = $2,000 UPart (e)Using formulae:MPV = 3,100 x ($10.50 - $10) = +$1,550 = $1,550 UQUESTION 3“Fit to a T” designs and manufactures T-shirts, and sells them in one-dozen lots. A new type of material was purchased in the period, which led to faster cutting and sewing but the workers used more material than usual as they learned to work with it. The following are selected budget and actual results for the period:Static BudgetNumber of T-shirt lots (1 lot = 1 dozen) 500Per lot of T-shirts:Direct materials 12 metres at $1.50 per meter = $18.00Direct manufacturing labour 2 hours at $8.00 per hour = $16.00Actual resultsNumber of T-shirt lots sold 550Total direct inputs:Direct materials 7,260 metres at $1.75 per meter = $12,705 Direct manufacturing labour 1,045 hours at $8.10 per hour = $8,464.50(a) Calculate the direct material and direct labour variances for the period.(b) Identify possible reasons (suggested from the facts given only – not the general ones in the lecture notes) for the efficiency variances you have calculated.Answer(a) Direct MaterialsAQ used x AP AQ used x SP SQ x SP7,260 x 1.75 7,260 x 1.50 (550 x 12) x 1.5012,705 10,890 6,600 x 1.509,900MPV MEV$1,815 U $990 UFLEXIBLE BUDGET V ARIANCE$2,805 UDirect LabourAQ used x AP AQ used x SP SQ x SP1,045 x 8.10 1,045 x 8 (550 x 2) x 88,464.50 8,360 1,100 x 88,800LRV LEV$104.50 U $440 FFLEXIBLE BUDGET V ARIANCE$335.50 FTOTAL FLEXIBLE BUDGET V ARIANCE$2,469.50 U ($2,805 - $335.50)(b) Possible reasons for efficiency variances (using only facts given):Unfavourable MEV because the new type of material was different to work with, therefore the workers wasted more material than usual while getting used to its different texture etc. Favourable LEV because we are told that the material resulted in “faster cutting and sewing”.AYB225 – PRACTICE QUESTIONS, LECTURE 7QUESTION 1Standard manufacturing costs per unit: (Unchanged from previous accounting period)DM $6; DL $4; V OH $3; F OH $2Physical quantities: (There were no WIP inventories.)Opening FG - 300Units produced - 6,000Closing FG - 200Other cost and price data:Selling price per unit - $25Actual F OH - $11,500Selling and admin costs - $5,000 Fixed, $3,000 V ariable.Variances for the period:Total variable (DM, DL, V OH) - 15,000 UTotal fixed – 500 FRequired:(a) Properly classified Absorption Costing Income Statement for the period.(b) Properly classified Variable Costing Income Statement for the period.(c) Quantitatively reconcile the profits under the two systems.(d) Explain why the AC profit is less than DC profit.ANSWERAC product cost per unit is 6+4+3+2 = $15DC product cost per unit is 6+4+3 = $13(a) Absorption Costing Income StatementSales (6,100 x $25) 152,500Less Cost of Goods Sold:(6,100 x $15) 91,500Add net variances (unfavourable) 14,500 106,000GROSS MARGIN 46,500Less Selling and Administrative Expenses 8,000NET PROFIT $38,500(b) Direct Costing Income StatementSales (6,100 x $25) 152,500Less Variable Costs;COGS (6,100 x $13) 79,300Add net variances (unfavourable) 15,000 94,300Selling and Administrative Expenses 3,000 97,300 CONTRIBUTION MARGIN 55,200Less Fixed Costs:Overhead 11,500Selling and Administrative 5,000 16,500NET PROFIT $38,700(c)Inventory decreased from 300 to 200, therefore:Change in inventory 100 x F OH per unit ($2) = $200 explains the difference in profit. Because the fixed OH per unit is unchanged from the previous period, it is possible to conclude that because inventory has decreased profit under AC will be $200 smaller than under DC.(d)The total fixed OH incurred and expensed under DC relates to the 6,000 units produced. Under AC the firm expenses the amount of F OH relating to units sold, which is 6,100. Therefore, because the firm produced less than it sold, under AC an additional amount of fixed OH is expensed which relates to the units in opening inventory. (The full explanationis actually more complicated than this explanation, but the above is all that you are required to know for this unit.AYB225 – SOLUTIONS, PRACTICE QUESTIONS LECTURE 8Note: If you are required to complete a cost of production report in the examination you will be provided with a pro-forma.QUESTION 1 (a)Calc. EUOpening WIP 50%Transferred InT o A/c forCompletedClosing WIP (75%)A/c forCalc. Unit CostsWIPCurrentCosts to Account ForEUUNIT COSTSAllocation of CostsGoods Completed8,000 x $10.2091 81,673Work in process3,000 x 2.9091 8,7273,000 x 2.9 8,7000 x .80 02,250 x 3.60 8,100 25,527107,200* In practice the journal entries would separate out these amounts, as the solution does. If you know the figures, you must show them separately.(c)Work in Process – 2 a/cBalance 44,800 To FG 81,673WIP-1 20,000 Close bal 25,527 (this agrees with the amount above)Material X 16,000Material Y 6,400Payroll 14,000OH 6,000107,200 107,200QUESTION 2(a) COST OF PRODUCTION REPORTCalc. EUOpening WIP 40%Transferred InT o A/c forCompletedClosing WIP(60%)A/c forCalc. Unit CostsWIPCurrentCosts to Account ForEUUNIT COSTSAllocation of CostsGoods Completed2,000 x 83.004 $166,008WIP 400 x 49.104 T/I 19,642240 X 25 CC 6,000 $ 25,642$191,650(b) Work in Process - Spinning Department $96,000Work in Process - Drawing Department $96,000Work in Process – Spinning $ 63,800Materials $ 17,800Payroll, Misc. Credits (if known list separately) $ 46,000Finished Goods $166,008Work in Process - Spinning Department $166,008AYB225 – PRACTICE QUESTIONS, LECTURE 9COST ALLOCATIONPART A – SERVICE DEPARTMENT ALLOCATIONQUESTION 1A firm has two production departments, Mixing and Finishing. These departments areserviced by two support departments, Administration and Payroll. The costs and % usage of the service departments follows:(b) Calculate the billing rates per work unit for administration and payroll under the directmethod, assuming that 1% = 1 work unit. Round to 2 decimal places.(c) Show the allocation using the step-down method, starting with Administration.(d) Show the allocation using the step-down method, starting with Payroll.(e) Calculate the billing rates per work unit for administration and payroll for the methodused in (d) assuming that 1% = 1 work unit. Round to 2 decimal places.FromAdministration From Payroll(b) Administration = 60,000/80 = $750 per unit of work Payroll = 80,000/70 = $1,142.86 per unit of workFromAdministration From Payroll(d)From PayrollFromAdministration(e) Administration = 84,000/80 = $1,050 per work unit Payroll = 80,000/100 = $800 per work unitQUESTION 1Daniel Supply Company manufactures three products. The first process is a joint process, with joint costs of $127,500. Opening WIP and FG inventory areabove data.Note: Joint cost allocation must be based on units produced, NEVER units sold.(b) Show joint cost allocation for Daniel Supply Company assuming the net realisable value method.(c) Use the data for Daniel Supply Company above, except assume now that Bizmo is a by-product.Show the allocation of the joint costs assuming the net realisable value method, and:(i)the net realisable value of the by-product is treated as miscellaneous income.(ii)(ii) the net realisable value of the by-product reduces the costs of the principal products.ANSWER(a)One method would be to say there are three products, therefore each product will be allocatedAnother would be based on the number of physical units produced. The firm produced the following number of units through the joint process:A third would be based on the weighted units produced, i.e.different, and so is the direction in terms of which products are allocated the higher cost.(c)Note: Use the proportions of NRV calculated in part (b) above, i.e. Gizmo 630, Wizmo 280(i) Under this method the total joint costs are allocated to the products only (i.e. not to by-product Bizmo):NRV AllocationGizmo 630 630/910 $ 88,269Wizmo 280 $ 39,231$127,500(ii) Under this method the joint costs are reduced by the net realisable value of Bizmo, i.e. $127,500 less ($40,000 less $8,000) = $95,500. These costs are then allocated to the products only (i.e. not to by-product Bizmo):NRV AllocationGizmo 630 630/910 $66,115Wizmo 280 $29,385$95,500。