代做Accounting 424 Intermediate Managerial Accounting Sample Mid Term Examination II代写Java程序

Accounting 424 Intermediate Managerial Accounting

Sample Mid Term Examination II

Question 1 (15 marks) Joint cost allocation

ACME Mining Co. is a small coal mining operation. Each tonne of mined coal yields 40% Grade A coal, 40% Grade B coal, and 20% coal tar. Each tonne of coal tar processed yields one vat of coal tar. The entire production is sold to a nearby utility. The work-in-process control account shows that, in February, ACME mined 1,000 tonnes of coal at a cost of $12,000. There are no additional separable costs.

Grade A coal sells for $120 per tonne, Grade B coal sells for $80 per tonne, and coal tar sells for $20 per vat. ACME treats Grade A and Grade B coal as joint products and coal tar as a byproduct. Assume the ACME Mining Co. allocates the joint costs to Grade A and Grade B coal using the sales value at splitoff. The byproduct is recorded in inventory at production time at its expected sales value while the main products are recorded at their respective manufacturing costs. The estimated NRV of the byproduct is deducted from the cost of producing the main joint products.

Required:

a.   Show journal entries at the time of production to record the February mining costs and the

inventory of coal tar. What is the amount of joint cost to be allocated to Grade A and Grade B coal? 5 marks

b.  Allocate the joint costs determined above to the main products, Grade A and Grade B coal,

using the sales value at splitoff. Show the corresponding journal entries for recording the inventory of coal. (In this case the allocation of joint costs determines the inventory values for the main products because there are no further separable processing costs.) 5 marks

c.  Assume that the coal tar is sold for $3,800. Show the journal entries to record the sale. 3 marks

d.  At the time of sale, no sales revenue is recorded for the byproduct. Very briefly explain why.  2 marks

Question 3 (25 marks) Variance analysis

Variance Company’s budget for the year 2014 is shown in the table on the next page along with the actual amounts for the year (all amounts in thousands of dollars).

Required:

a.   Fill in the remainder of the table to show the flexible budget, the sales-volume variance and the flexible budget variances. Label the appropriate columns and provide calculations for the flexible budget amounts you enter. Assume all  variable costs change based on the number of units produced. Label all of the variances you enter as F (favourable) or U (unfavourable) 10 marks

b.   The static-budget variance on total variable costs is highly favourable. Based on  your detailed analysis in part a., and considering only the variable cost categories, 1) what can you conclude at this stage and 2) which variances require further investigation? Explain briefly. 6 marks

	Actual Results 2014				Static Budget 2014
Units manufactured and sold	8,000				10,000
Sales Revenue Variable Costs: Direct Materials Direct Labour Variable Manufacturing Overhead
	$ 246,000				$ 300,000
	$  42,000				$   50,000
	120,000				150,000
	25,000				20,000
Total Variable Costs	187,000				220,000
Contribution Margin Fixed Manufacturing Overhead	59,000				80,000
	62,000				60,000
Operating Income (Loss)	$ (3,000)				$  20,000

c.   The fixed manufacturing overhead is allocated based on direct labour dollars. Calculate the standard fixed overhead allocation rate, and the spending and the production-volume variances for fixed manufacturing overhead. What is the amount of over-or under-allocated fixed overhead? 6 marks

d.   Assume that Variance Company uses standard costing and has no beginning or ending inventories of work-in-process. What is the cost of goods manufactured for 2014? 3 marks