ACC 2301: Business Management Accounting And Financial Accounting

406

ACC 2301
INTRODUCTORY MANAGEMENT ACCOUNTING
Section 011 (Monday)

Final Exam, Winter Term 2012
(May 25th, 2012, 1:10 p.m. - 3:10 p.m. in Room TRS2-147)

INSTRUCTIONS TO STUDENTS:

1. This 2-hour test consists of 5 questions (7 pages).

2. Marks total 45.

3. All questions must be answered on this paper in the spaces following the questions. Pages are not to be separated and all pages must be submitted without exception.

4. Calculator (model Royal XE24 or XE36 or XE48) may be used.

5. No textbooks or notes may be used.

6. To round calculation to two decimal places.

7. DO NOT USE RED PEN ON ANY OF THESE PAGES.

INSTRUCTOR:

Student Name: __________________________

Student
1 |2,250 |
|Finished Goods Inventory, Nov. 30 |3,750 |
|Work in Process Inventory, Nov. 1 |4,200
|Using the high-low method, compute the total fixed cost of electricity. |
|C. |Estimate the total electricity cost to be incurred in December if 5,300 machine hours are incurred. |

ANS:

|A. |($27,950 − $25,160)/(5,430 − 4,500) = $3 per machine hour |
| | |
|B. |$27,950 − ($3 × 5,430) = $11,660 |
| | |
|C. |$27,560 = $11,660 + ($3 × 5,300) |

Question 3 (12 marks)

Aaron Company provided the following data for next month:

|Selling price per unit |$400 |
|Variable manufacturing costs per unit |$100