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Bangladesh University of Professionals Faculty of Business Studies Department of Accounting & Information Systems Course Title: Intermediate Cost Accounting : Course Code: ACT 3102 Mid Term Examination Time: 1 hr Marks:20 Question No 01 (10) Atlantic Corporation manufactures and sells two products: plain white and solid colored T- shirts. In July 2019, Atlantic budget department gathered the following data to prepare budgets for 2020 2020 Projected Sales Price Product White T-shirts Solid colored T-shirts Units 52,000 46,000 TK 1200 Tk 1350 2020 Inventories in Units Product White T-shirts Solid colored T-shirts January 01, 2020 12,000 13,000 December 31, 2020 8,000 9,500 The following direct matcrials are used in the two products: Direct material Wool Yam Details Unit Ounces Ounces Amount used per unit White T-shirts Solid Colored T-shirts 10 10 12 8 Projected data for 2020 for direct materials are Direct material Wool Yarn Anticipated purchase Expected Inventories price January 01,2020 Tk 150 38,000 Tk 180 42,000 Target Inventories December 31,2020 40,000 35,000 Projected direct manufacturing labor requirements and rates for 2020 are: Product Ilour's per unit Rate per hour White T-shirts 3 Tk 85 Solid colored T-shirts 4 Tk 90 Manufacturing overhead is allocated at the rate of Tk 180 per direct manufacturing labor- hour. Based on the preceding projections and budget requirements for plain white and solid colored T-shirts, prepare the following budgets for 2020: i. Revenues budget (in Tk) ii. Production budget (in units) iii. Direct material usage budget (in quantities and Tk) iv. Direct material purchases budget (in units and Tk) v. Direct manufacturing labor budget (in Tk) vi. Budgeted finished goods inventory at December 31, 2020 in Tk) vii. Whal questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? Question No 02 (10) Below is August's unit and cost data for a manufacturing firm in Department 1 that uses weighted average costing. Beginning units in process (100% direct matcrials, 65% conversion costs) 1,45,000 Work-in-process inventory-beginning Tk 4,72,000 Units tranferred in during the period 380,000 Costs transferred in during the period Tk 5,88,000 Costs added this period Direct materials Tk 8,12,700 Direct labor Tk 6,76.260 Factory overhead (applied) Tk 4,87,305 Units tranferred out to finished goods inventory 4,10,000 Ending units in process (100% direct materials and 70% conversion costs) ? Required ii. Calculate the equivalent units for department 1. Prepare the costs accounted for section for the cost of production report for Department 1 Bangladesh University of Professionals Faculty of Business Studies Department of Accounting & Information Systems Course Title: Intermediate Cost Accounting : Course Code: ACT 3102 Mid Term Examination Time: 1 hr Marks:20 Question No 01 (10) Atlantic Corporation manufactures and sells two products: plain white and solid colored T- shirts. In July 2019, Atlantic budget department gathered the following data to prepare budgets for 2020 2020 Projected Sales Price Product White T-shirts Solid colored T-shirts Units 52,000 46,000 TK 1200 Tk 1350 2020 Inventories in Units Product White T-shirts Solid colored T-shirts January 01, 2020 12,000 13,000 December 31, 2020 8,000 9,500 The following direct matcrials are used in the two products: Direct material Wool Yam Details Unit Ounces Ounces Amount used per unit White T-shirts Solid Colored T-shirts 10 10 12 8 Projected data for 2020 for direct materials are Direct material Wool Yarn Anticipated purchase Expected Inventories price January 01,2020 Tk 150 38,000 Tk 180 42,000 Target Inventories December 31,2020 40,000 35,000 Projected direct manufacturing labor requirements and rates for 2020 are: Product Ilour's per unit Rate per hour White T-shirts 3 Tk 85 Solid colored T-shirts 4 Tk 90 Manufacturing overhead is allocated at the rate of Tk 180 per direct manufacturing labor- hour. Based on the preceding projections and budget requirements for plain white and solid colored T-shirts, prepare the following budgets for 2020: i. Revenues budget (in Tk) ii. Production budget (in units) iii. Direct material usage budget (in quantities and Tk) iv. Direct material purchases budget (in units and Tk) v. Direct manufacturing labor budget (in Tk) vi. Budgeted finished goods inventory at December 31, 2020 in Tk) vii. Whal questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? Question No 02 (10) Below is August's unit and cost data for a manufacturing firm in Department 1 that uses weighted average costing. Beginning units in process (100% direct matcrials, 65% conversion costs) 1,45,000 Work-in-process inventory-beginning Tk 4,72,000 Units tranferred in during the period 380,000 Costs transferred in during the period Tk 5,88,000 Costs added this period Direct materials Tk 8,12,700 Direct labor Tk 6,76.260 Factory overhead (applied) Tk 4,87,305 Units tranferred out to finished goods inventory 4,10,000 Ending units in process (100% direct materials and 70% conversion costs) ? Required ii. Calculate the equivalent units for department 1. Prepare the costs accounted for section for the cost of production report for Department 1

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