管理会计quiz 2--ch 4 5 8.docx

QUIZ 2 CH 4/5/8（20 MARKS）1.Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily excursions to teahouses and public parks where they meet with other bird owners to talk and play mahjong. A great deal of attention is lavished on these birds, and the birdcages are often elaborately constructed from exotic woods and contain porcelain feeding bowls and silver roosts. Gold Nest Company makes a broad range of birdcages that it sells through an extensive network of street vendors who receive commissions on their sales. The Chinese currency is the renminbi, which is denoted by Rmb. All of the company’s transactions with customers, employees, and suppliers are conducted in cash; there is no credit.The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. At the beginning of the year, it was estimated that the total direct labor cost for the year would be Rmb110,000 and the total manufacturing overhead cost would be Rmb275,000. At the beginning of the year, the inventory balances were as follows:Raw materialsRmb13,000Work in processRmb30,000Finished goodsRmb65,000During the year, the following transactions were completed:a.Raw materials purchased for cash, Rmb150,000.b.Raw materials requisitioned for use in production, Rmb158,000. (Materials costing Rmb135,000 were charged directly to jobs; the remaining materials were indirect.)c.Costs for employee services were incurred as follows:Direct laborRmb100,000Indirect laborRmb40,000Sales commissionsRmb22,000Administrative salariesRmb35,000d.Rent for the year was Rmb36,000. (Rmb30,000 of this amount related to factory operations, and the remainder related to selling and administrative activities.)e.Utility costs incurred in the factory, Rmb90,000.f.Advertising costs incurred, Rmb88,000.g.Depreciation recorded on equipment, Rmb80,000. (