金陵科技学院-管理会计（双语）管理会计复习提纲.docVIP

PRACTICE QUESTIONS PART A, LECTURE 1 QUESTION 3 Answer 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 and non-manufacturing costs. Note that the fixed and variable costs are treated differently: SOLUTIONS TO PRACTICE QUESTIONS, PART A LECTURE 2 QUESTION 1 Production budget for the month of April Required 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)