Q1.
The following forecast information relates to operations of Zmart for the month of August and is based on expected production of 50,000 units for the month.
|
|
$
|
|
Sales revenue
|
1,279,662
|
|
Manufacturing costs
|
|
|
Variable
|
595,634
|
|
Fixed
|
283,786
|
|
Selling costs
|
|
|
Variable
|
52,017
|
|
Fixed
|
46,879
|
|
Administrative costs
|
|
|
Variable
|
197,577
|
|
Fixed
|
91,830
|
If the income tax rate is 38%, calculate how many units need to be sold in August in order to achieve a target profit after tax of $150,000. (Round your final answer to the nearest whole number.)
Q.2 A small local manufacturing company has the following account balances for February:
|
|
$
|
|
Depreciation on factory plant
|
26,037
|
|
Direct labour (10,000 hours at $22 per hour)
|
220,000
|
|
Direct materials
|
50,316
|
|
Indirect labour
|
7,928
|
|
Lease costs on plant
|
16,631
|
|
Marketing costs
|
22,739
|
|
Utilities for plant
|
10,445
|
The company allocates manufacturing overhead at $6 per direct labour hour.
Calculate the total amount by which manufacturing overheads were over or underallocated for the month of February. (Show an overallocation as a positive figure and an underallocation as a negative figure)
Q.3
A manufacturing company has the following balances at 30 April:
| |
$
|
|
|
Inventory - direct materials
|
14,204
|
Dr.
|
|
Inventory - work-in-process
|
36,710
|
Dr.
|
|
Inventory - finished goods
|
49,117
|
Dr.
|
|
Manufacturing overhead
|
3,776
|
Dr.
|
|
Cost of goods sold
|
74,025
|
Dr.
|
During April, raw materials totalling $41,476 were purchased, and $43,179 were requisitioned for the production process. The cost of goods manufactured during April was $97,901, and manufacturing overhead totalling $51,268 was applied to production during the month (at 140% of direct labour cost).
Calculate the balance of Work-in-process Inventory as at 1 April. (Round your answer to the nearest dollar.)
Q.4 A manufacturing company has the following balances at 31 May:
|
|
$
|
|
|
Inventory - direct materials
|
16,975
|
Dr.
|
|
Inventory - work-in-process
|
34,629
|
Dr.
|
|
Inventory - finished goods
|
47,551
|
Dr.
|
|
Manufacturing overhead
|
3,687
|
Dr.
|
|
Cost of goods sold
|
70,482
|
Dr.
|
During May, raw materials totalling $41,967 were purchased, and $44,738 were requisitioned for the production process. The cost of goods manufactured during May was $109,544, and manufacturing overhead totalling $47,581 was applied to production during the month (at 140% of direct labour cost).
Calculate the balance of Finished Goods Inventory as at 1 May. (Round your answer to the nearest dollar.)
Q.5 If the break-even point is lower than the number of units currently produced, then:
a. The organisation's revenue is less than its total costs
b. The organisation has made a profit
c. The organisation's revenue is greater than its total costs
d. The organisation has made a profit, and total revenue is greater than total costs
Q.6 Managers make use of cost-volume-profit analysis primarily to:
a. record the organisation's revenues and costs
b. generate figures for the organisation's financial statements
c. control the organisation's past performance
d. plan the organisation's future operations
Q7. Cacophony Ltd manufactures custom-made computer equipment. The company applies manufacturing overhead to individual jobs using machine hours as a cost driver. The following costs were budgeted for the forthcoming year:
|
Direct material costs
|
$449,460
|
|
Direct labour costs
|
$203,911
|
|
Manufacturing overheads
|
$276,833
|
|
Number of machine hours
|
456,490
|
Job #996 has incurred direct materials of $1,802, direct labour of $855 and used 956 machine hours.
Calculate the total amount of manufacturing overheads that will be allocated to job #996. (Round your answer to the nearest dollar.)
Q.8 A company is considering launching a new product. It has calculated a break-even point at 1,552 units, at a selling price of $111 per unit. If the company wants a safety margin of $2,000, calculate the number of units that will be need to be sold.
Q9
The following forecast information relates to operations of Zmart for the month of June:
|
|
$
|
|
Sales revenue
|
1,353,593
|
|
Manufacturing costs
|
|
|
Variable
|
557,127
|
|
Fixed
|
282,833
|
|
Selling costs
|
|
|
Variable
|
50,205
|
|
Fixed
|
43,390
|
|
Administrative costs
|
|
|
Variable
|
183,838
|
|
Fixed
|
119,561
|
Calculate the break-even point in sales dollars (revenue) for June. (Round your final answer to the nearest whole number.)
Q.10 A small local manufacturing company has the following account balances for January:
|
|
$
|
|
Depreciation on factory plant
|
21,652
|
|
Direct labour (10,000 hours at $22 per hour)
|
220,000
|
|
Direct materials
|
50,247
|
|
Indirect labour
|
8,087
|
|
Lease costs on plant
|
13,437
|
|
Marketing costs
|
21,592
|
|
Utilities for plant
|
7,305
|
The company allocates manufacturing overhead at $4 per direct labour hour.
Calculate the total amount of manufacturing overhead allocated to products for the month of January.
Q.11. Ludicrous Ltd manufactures holographic golf balls and uses a process costing system to record and calculate costs. Data for the Finishing department for September are as follows:
|
Units
|
|
|
Opening WIP inventory (30% complete)
|
983
|
|
Units started during the month
|
1,423
|
|
Closing WIP inventory
|
339
|
|
|
|
|
Costs
|
$
|
|
Direct materials costs in Opening WIP inventory
|
155,091
|
|
Conversion costs in Opening WIP inventory
|
97,153
|
|
Direct materials added to production during the month
|
231,607
|
|
Conversion costs added to production during the month
|
765,071
|
All direct materials are added at the beginning of the process, conversion costs are incurred evenly throughout the finishing department.
Calculate the number of units completed and transferred out of the Finishing department during the month.
Q.12 Cacophony Ltd manufactures custom-made computer equipment. The company applies manufacturing overhead to individual jobs using machine hours as a cost driver. The following costs were budgeted for the forthcoming year:
|
Direct material costs
|
$391,931
|
|
Direct labour costs
|
$225,805
|
|
Manufacturing overheads
|
$260,609
|
|
Number of machine hours
|
559,674
|
Job #996 has incurred direct materials of $1,880, direct labour of $864 and used 878 machine hours.
Calculate the total manufacturing costs for job #996. (Round your answer to the nearest dollar.)
Q.13 The following forecast information relates to operations of Zmart for the month of July and is based on expected production of 50,000 units for the month.
|
|
$
|
|
Sales revenue
|
1,444,673
|
|
Manufacturing costs
|
|
|
Variable
|
580,625
|
|
Fixed
|
255,513
|
|
Selling costs
|
|
|
Variable
|
58,392
|
|
Fixed
|
49,912
|
|
Administrative costs
|
|
|
Variable
|
181,870
|
|
Fixed
|
114,140
|
Calculate how many units need to be sold in July in order to achieve a target operating profit of $250,000. (Round your final answer to the nearest whole number.)
Q.14 Cacophony Ltd manufactures custom-made computer equipment. The company applies manufacturing overhead to individual jobs using machine hours as a cost driver. The following costs were budgeted for the forthcoming year:
|
Direct material costs
|
$438,225
|
|
Direct labour costs
|
$161,094
|
|
Manufacturing overheads
|
$241,687
|
|
Number of machine hours
|
538,809
|
Job #998 has incurred direct materials of $1,614, direct labour of $985 and used 1,162 machine hours.
Calculate the annual manufacturing overhead allocation rate for Cacophony Ltd. (Round your answer to two decimal places.)
Q.15 A non-profit organisation provides meals to homeless people in Brisbane. Each year it incurs fixed costs of $282,330, and each meal costs $6. If the organisation receives funding of $482,280 for the year, how many meals can it provide?