Practice Test #1

5 Pages
Unlock Document

University of Winnipeg
Business And Administration
Debbie Mortimer

DEPARTMENT OF BUSINESS AND ADMINISTRATION BUS2003 Test 1 September 29, 2010 Name:____________________________________________________ Student Number: __________________________________________ Instructions: Please answer the following questions on the examination test sheets. If you need more room, please use the back of the pages. Show your calculations in detail. Grading: Q1 /13 Q2 /15 Q3 /5 Total /33 BUS2003 Test 1 page 1 of 5 Question 1: (13 marks) The following information is from Marchant Manufacturing Co. for September: Direct materials used in production $ 95,000 Direct labour $ 67,000 Total manufacturing cost $234,000 Direct materials inventory, Sept. 1 $ 24,000 Work-in-process inventory, Sept. 1 $ 6,000 Finished goods inventory, Sept. 1 $101,000 Purchases of direct materials $102,000 Cost of goods manufactured $233,000 Administrative expense $ 41,000 Selling expense $ 56,000 Sales $344,000 Gross margin $127,000 Net income $ 30,000 Required: a) Compute the cost of goods sold. (2 marks) b) Compute the balance in finished goods inventory at September 30. (3 marks) c) Compute the balance in work-in-process inventory at September 30. (3 marks) d) Compute the balance in raw materials inventory at September 30. (3 marks) e) Compute the total manufacturing overhead. (2 marks) (Hint: The easiest method of solving this problem is to sketch out the income statement and the schedule of cost of goods manufactured, enter the given amounts, and then enter the unknowns as plug figures.) Question 1 Solution BUS2003 Test 1 page 2 of 5 BUS2003 Test 1 page 3 of 5 Question 2: (15 marks) Carver Test Systems manufactures automated testing equipment. The company uses a normal job-order costing system and applies overhead on the basis of machine hours (MH). At the beginning of the year, estimated manufacturing overhead was $1,960,000, and the estimated machine hours was 98,000. Data regarding several jobs at Carver are presented below. Costs and MH added during the month Job Number
More Less

Related notes for BUS-2003

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.