Q#1
A Hotel pays the phone company 500 per month plus .25 for each call made during January 6,000
calls were made in February 5,000 calls were made
Required
1. Calculate the hotel s’ phone bill for January and February
2. Calculate the cost per phone call in January and in February
3. Separate the January phone bill into its fixed and variable components
4. What was the average cost of a phone call in January
(02 marks)
Q#2
The ASF Corporation manufactures one product and accounts for costs by a job orders cost system
You have obtained the following information for the year ended December 31 2010 from the
Corporations books and records
Total manufacturing cost added during 2010 was 1,000,000
Cost of goods manufactured was 970,000
Factory overhead was applied to work in process inventory at 75% of direct labor (applied factory
overhead for the year 27% of the total manufacturing cost)
Beginning work in process inventory January 1 was 80% of ending work-in – process inventory
December 31
Required
Prepare a formal statement of cost good manufactured
Q#3
HASF company Manufactured 1,000 units of product last year and identified the following cost
associated with the manufacturing activity
Direct material used
Direct labor
Supervisory Salary
indirect material and supplies
plant utilities (other than power to run plant equipment
Power to run plant equipment
Depreciation on plant and equipment
Property taxes on building
35,200
66,500
31,100
8,000
9,600
7,100
4,800
6,500
Required
unit variable costs and total fixed costs are expected to remain unchanged next year calculate the
unit cost and total cost if 1,400 units are produced next year (05 marks )
Q#4
The following information appears in HASF records for last year
Administrative cost
Manufacturing building depreciation
Indirect materials and supplies
Sales commissions
Raw material inventory Jan 1
Direct labor
Raw material inventory Dec 31
Finished goods inventory January 1
Finished goods inventory Dec 31
Raw material purchases
Work in process Dec 31
Supervisory and indirect labor
Property taxes manufacturing plant
Plant utilities and power
Work in process Jan -1
Sales Revenue
80,000
14,000
17,600
30,400
36,800
91,200
38,000
71,800
48,000
44,600
26,200
28,800
16,800
47,000
30,800
420,800
Prepare an income statement with a supporting schedule of cost of goods sold