BA 116 WFRU

Mechanics - GroupingForm SIX groups with 8-9 people per groupEach group must have an answer sheet and

scratch paper for the problems

Mechanics - QuestionsEach question will have a designated time

limitQuestions will vary from theory/concepts to

problem solvingQuestions will be designated as EASY,

MODERATE or DIFFICULTEASY questions will be worth 5 pointsMODERATE questions will be worth 10 pointsDIFFICULT questions will be worth 20 points

Mechanics - AnsweringFor each question, each group will be

represented by a pair , chosen at randomFinal answers must be written on the answer

sheet within the designated time limitIf a group decides to use a lifeline for a

specific question, then it must also write down the lifeline it wants to use

Mechanics - LifelinesEach group has FOUR available lifelines:

CALL, COPY, SWITCH, and TIMECALL enables the group to use the answer of

an “inactive” groupmate as the group’s final answer for the particular question

COPY enables the group to copy the answer of another group for the particular question

SWITCH enables the group to switch answers with another group for the particular question

TIME grants the group more time to answer the particular question

Mechanics - RewardsFirst place: +150/150 to quizzesSecond place: +120/120Third place: +90/90Fourth place: +70/70Fifth place: +50/50Sixth place: +25/25

Question 1: EASY, 1.5 mins

Question 2: DIFFICULT, 2 mins

Question 3: MODERATE, 1 min

Question 4: EASY, 0.5 min

Question 5: DIFFICULT, 2 mins

Question A: DIFFICULT, 2.5 minsSit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process).

Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold.

How much raw material A was purchased during the period?

Question 6: EASY, 1 min

Question 7: MODERATE, 2 mins

Question 8: DIFFICULT, 2.5 mins

Question 9: DIFFICULT, 2.5 mins

Question 10: EASY, 0.5 min

Question B: DIFFICULT, 2.5 minsSit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process).

Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold.

How much raw material B was purchased during the period?

Question 11: EASY, 0.5 min

Question 12: MODERATE, 1.5 minsThe controller for Durham Skates is reviewing the production cost report for July. An analysis of direct materials costs reflects an unfavorable flexible budget variance of $25.

The plant manager believes this is excellent performance on a flexible budget for 5,000 units of direct materials. However, the production supervisor is not pleased with this result because he claims to have saved $1,200 in materials cost on actual production using 4,900 units of direct materials.

The standard materials cost is $12 per unit. Actual materials used for the month amounted to $60,025.

The actual average cost per unit for materials was

Question 13: DIFFICULT, 2.5 minsA company producing a single product employs the following direct material cost standard for each unit of output:3 pounds of material x $4/pound = $12/output unit

Data regarding the operations for the current month are as follows:Planned production 26,000 unitsActual production 23,000 units

Actual purchases of direct materials (75,000 pounds) $297,000Direct materials used in Production 70,000 pounds

What would be the amount of the direct materials purchase price variance and direct materials quantity variance that the company would recognize for the month?

Question 14: MODERATE, 1 minThe best basis upon which cost standards should be set to measure controllable production inefficiencies is

A. Recent average historical performance.B. Engineering standards based on ideal performance.C. Normal capacity.D. Engineering standards based on attainable performance.

Question 15: MODERATE, 1 minWhich of the following is least likely to cause an unfavorable materials quantity (usage) variance?

A. Labor that possesses skills equal to those required by the standards.B. Machinery that has not been maintained properly.C. Materials that do not meet specifications.D. Scheduling of substantial overtime.

Question C: DIFFICULT, 3 minsSit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process).

Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold.

What are the target ending balances of RIP, FG, and CGS?

Question 16: DIFFICULT, 2 minsA company manufactures one product and has a standard cost system. In April the company had the following experience:

Direct Materials Direct LaborActual $/unit of input (lbs. & hrs.) $28 $18Standard price/unit of input $24 $20Standard inputs allowed per unit of output 10 4Actual units of input 190,000 78,000Actual units of output 20,000 20,000

The direct materials efficiency and direct labor rate variances for April is

Question 17: MODERATE, 1 minWhich of the following factors should not be considered when deciding whether to investigate a variance?

A. Whether the variance is favorable or unfavorable.B. Magnitude of the variance.C. Likelihood that an investigation will eliminate future occurrences of the variance.D. Trend of the variances over time.

Question 18: EASY, 0.5 minsA favorable material price variance coupled with an unfavorable material usage variance would most likely result from

A. The purchase and use of lower than standard quality material.B. The purchase and use of higher than standard quality material.C. Labor efficiency problems.D. Labor mix problems.

Question D: DIFFICULT, 3 minsSit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process).

Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold.

What is the end-of-period adjustment entry assuming trigger points of purchase and sale?

Question 19: DIFFICULT, 2.5 minsTiny Tykes Corporation had the following activity relating to its fixed and variable overhead for the month of July.Actual costsFixed overhead $120,000Variable overhead 80,000

Flexible budgetVariable overhead 90,000

StandardFixed overhead 125,000

Variable overhead spending variance 2,000FProduction volume variance 5,000U

If the budgeted rate for applying variable manufacturing overhead was $20 per direct labor hour, by how many DL hours was Tiny Tykes more/less efficient than the standard?

Question 20: DIFFICULT, 3 minsFranklin Glass Works' production budget for the year ended November 30 was based on 200,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year, and thefixed overhead rate was estimated to be $3.00 per unit. Both fixed and variable overhead are assigned to the product on the basis of direct labor hours. The actual data for the year ended November 30 are presented as follows.

Actual production in units 198,000Actual direct labor hours 440,000Actual variable overhead $352,000Actual fixed overhead $575,000

Franklin's variable overhead spending variance for the year is

Question E: DIFFICULT, 3 minsSit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process).

Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold.

What is the end-of-period adjustment entry assuming one trigger point (sale)?