JOB ORDER COSTING
MULTIPLE CHOICE Question Nos. 4, 5, 9!", #n$ !% #&e 'ICP' #$#(te$. Question Nos. ), %, #n$ !4!) #&e ICM' #$#(te$. '
!.
Un$e& *o+ o&$e& ost #u-u# u#tion, t/ t/e 0#to&1 o2e&/e#$ ont&o #ount
ont&os3
B
B
'
.
".
4.
'.
0#to&1 o2 o2e&/e#$ #n #n#1sis s/ s/eets
B.
# # ene ene&# &# e$ e$e& e& su+si u+si$i $i# #&1 #ou ount ntss
C.
*o+ o&$e& ost s/eets
D.
ost &e &e(o&ts +1 +1 (& (&oesses
E.
-#te&i#s in2ento&ies
Su((ies ne nee$e$ 0o& use in t/e 0#to&1 #&e issue$ on t/e +#sis o03 '.
*o+ ost s/eets
B.
-#te&i#s &e6uisitions
C.
ti-e ti7ets
D.
0#to&1 o2 o2e&/e#$ #n #n#1sis s/ s/eets
E.
o7 #&$s
8inis/e$ Goo$s is $e+ite$ #n$ o&7 in P&oess is &e$ite$ 0o& #3 '.
t&#n t&#ns0 s0e& e& o0 o-( o-(e ete te$ $ oo$ oo$ss out out o0 t/e t/e 0#t 0#to& o&11
B.
t&#n t&#ns0 s0e& e& o0 o-( o-(e ete te$ $ (&o (&o$u $ut tio ion n to to t/e t/e 0ini 0inis/ s/e$ e$ oo$ oo$ss sto sto&e &e&o &ooo-
C.
(u&/#se o0 oo$s on #ount
D.
t&# t&#ns0e ns0e&& o0 -#te& #te&i# i#s to t/e t/e 0#t 0#to o&1
E.
&et &etu&n o0 unus unuse$ e$ -#t -#te&i# &i#s 0&o 0&o- t/ t/e 0# 0#tto&1 o&1
In *o *o+ o& o&$e& o ostin, :/ :/en -#te&i#s #& #&e &e &etu&ne$ to to t/ t/e st sto&e7ee(e e(e& t/ t/#t
:e&e (&e2ious1 issue$ to t/e 0#to&1 0o& e#nin su((ies, t/e *ou&n# ent&1 s/ou$ +e -#$e to3 4;
'.
M#te&i#s 8#to&1 O2e&/e#$
B.
M#te&i#s o&7 in P&oess
C.
Pu&/#ses Re Retu&ns o&7 in P&oess
D.
o&7 in P&oess M#te&i#s
E.
8#to&1 O2e&/e#$ o&7 in P&oess
4)
Jo+ O&$e& Costin
'
5.
4%
Un$e& # *o+ o& o&$e& o ost s1 s1ste-, t/ t/e $o $o#& ##-ount o0 o0 t/ t/e en ent&1 to t&# t&#n ns0e& t/ t/e
in2ento&1 0&o- o&7 in P&oess to 8inis/e$ Goo$s is t/e su- o0 t/e osts /#&e$ to # *o+s3
B
;.
'.
o-(ete$ $u&in t/e (e&io$
B.
st#&te$ in in (& (&oess $u $u&in t/ t/e (e (e&io$
C.
in (&oess $u&in t/e (e&io$
D.
o-(et ete$ #n #n$ so so$ $u $u&in t/ t/e (e (e&io$
E.
none o0 t/e #+o2e
/en # -#nu0#tu&in in o-(#n1 /#s # /i/ /1 #uto-#te$ te$ (#n #nt (&o$uin
-#n1 $i00e&ent (&o$uts, (&o+#+1 t/e -ost #((&o(&i#te +#sis o0 #((1in 0#to&1 o2e&/e#$ osts to o&7 in P&oess is3
'
).
'.
units (&oesse$
B.
-#/ine /ou&s
C.
$i&et #+o& /ou&s
D.
$i&et #+o& $o#&s
E.
none o0 t/e #+o2e
C/e&o7ee Co-(#n1 #((ies 0# 0#to&1 o2e&/e#$ on on t/e +#sis o0 $i&et #+o&
/ou&s. Bu$et #n$ #tu# $#t# 0o& $i&et #+o& #+o& #n$ o2e&/e#$ 0o& 0o& t/e 1e#& #&e #&e #s 0oo:s3 Bu$et
'tu#
Di&et #+o& /ou&s
;<<,<<<
8#to&1 o2e&/e#$ osts
;5<,<<<
=)<,<<<
=);<,<<<
T/e 0#to&1 o2e&/e#$ 0o& C/e&o7ee 0o& t/e 1e#& is3 '.
o2e&#((ie$ +1 +1 =<,<<<
B.
o2e&#((ie$ +1 +1 =4<,<<<
C.
un$e&#((ie$ +1 =<,<<<
D.
un$e&#((ie$ +1 =4<,<<<
E.
neit/ eit/e& e& un$e un$e&# &#(( ((iie$ e$ no& no& o2e&# 2e&#(( ((ie$ ie$
49
C/#(te& 5
SUPPORTING C'LCUL'TION3 $720,000 600,000
= $1.20 _ 650,000
= $780,000 (applied) $760,000 (actual) = $20,000 (overapplied)
Jo+ O&$e& Costin
C
%.
5<
't t/e en$ o0 t/e 1e 1e#&, P# P#o# Co Co-(#n1 /#$ t/ t/e 0oo:in #ount +# +##n #nes
#0te& #((ie$ 0#to&1 o2e&/e#$ /#$ +een ose$ to 8#to&1 O2e&/e#$ Cont&o3 8#to&1 O2e&/e#$ Cont&o
=
!,<<< CR
Cost o0 Goo$s So$
9%<,<<<
DR
o&7 in P&oess
"%,<<<
DR
8inis/e$ Goo$s
%,<<<
DR
T/e -ost o--on t&e#t-ent o0 t/e +##ne in 8#to&1 O2e&/e#$ Cont&o :ou$ +e to3 '.
#&& #&&11 itit #s #s # $e0e $e0e&& &&e$ e$ &e$ &e$it it on t/e t/e +# +##n #ne e s/ee s/eett
B.
&e(o &e(o&t &t itit #s -is -ise e# #ne neou ouss o(e& o(e&#t #tin in &e2e &e2enu nue e on t/e t/e ino ino-e -e st# st#te te-e -ent nt
C.
&e$it itit to Cost o0 Goo$s So$
D.
(&o& (&o&#t #te e itit +et +et:e :een en o&7 o&7 in P&o P&oes esss #n$ #n$ 8ini 8inis/ s/e$ e$ Goo Goo$s $s
E.
(&o& (&o&#t #te e itit #-o #-on n o&7 o&7 in P&o P&oes ess, s, 8ini 8inis/ s/e$ e$ Go Goo$ o$s, s, #n$ #n$ Cos Costt o0 o0
Goo$s So$ B
9.
O2e&#((ie$ 0#to&1 o2e&/e#$ :ou$ &esut i03 '.
t/e t/e (# (#nt nt :e&e :e&e o(e& o(e&#t #te$ e$ #t ess ess t/#n t/#n no&no&-# # #(# #(#i it1 t1
B.
0#t 0#to& o&11 o2e o2e&/ &/e# e#$ $ os osts ts inu inu&& &&e$ e$ :e&e :e&e ess ess t/#n t/#n ost ostss /# /#& &e$ e$ to
C.
0#t 0#to& o&11 o2e& o2e&/e /e#$ #$ os osts ts in inu& u&&e &e$ $ :e&e :e&e un& un&e# e#so son# n#+ +11 #& #&e e in &e &e#t #tio ion n to
(&o$ution units (&o$ue$ D.
0#t 0#to& o&11 o2e& o2e&/e /e#$ #$ os osts ts in inu& u&&e &e$ $ :e&e :e&e &e &e#t #te& e& t/# t/#n n ost ostss /#& /#&e e$ $ to
E.
# 0i&0i&- inu inu&& &&e$ e$ # sin sini0 i0i i#n #ntt #-o #-oun untt o0 o0 o2e o2e&/ &/e# e#$ $
(&o$ution
'
!< .
T/e # #it7in 7ins Co Co-(#n1 es estiti-#te$ De De(#&t-ent '> '>s o2 o2e&/e &/e#$ #t #t = =55,<<< 0o 0o&
t/e (e&io$ +#se$ on #n esti-#te$ 2ou-e o0 !<<,<<< $i&et #+o& /ou&s. 't t/e en$ o0 t/e (e&io$, t/e 0#to&1 o2e&/e#$ ont&o #ount 0o& De(#&t-ent ' /#$ # +##ne o0 =;5,5<
5!
C/#(te& 5
'.
=,5<
B.
=A,5<
C.
=!5,<<<
D.
=A!5,<<<
E.
=A5,<<<
SUPPORTING C'LCUL'TION3 $255,000 100,000
= $2.55 _ 105,000 = $267,750 (applied) $265,500 (actual)
= $2,250 (overapplied)
Jo+ O&$e& Costin
D
!!.
5
Ho:e Co&(o &(o&#tion /#s # *o+ o&$e& ost s1ste-. T/e 0oo: o:in $e+its
A&e$its #((e#&e$ in o&7 in P&oess 0o& t/e -ont/ o0 Ju13 Ju1 !, +##ne
=
!,<<<
Ju1 "!, $i&et -#te&i#s Ju1 "!, $i&et #+o&
4 < ,< < < "<,<<<
Ju1 "!, 0#to&1 o2e&/e#$
),<<<
Ju1 "!, to 0inis/e$ oo$s
A!<<,<<<
Ho:e #((ies o2e&/e#$ to (&o$ution #t # (&e$ete&-ine$ &#te o0 9< +#se$ on t/e $i&et #+o& ost. Jo+ !<4<, t/e on1 *o+ *o+ sti in (&oess #t t/e en$ o0 Ju1, /#s +een /#&e$ /#&e$ :it/ 0#to&1 o2e&/e#$ o2e&/e#$ o0 =,5<. /#t :#s t/e #-ount o0 $i&et -#te&i#s /#&e$ to to Jo+ !<4<@ '.
=;,)5<
B.
=,5<
C.
=,5<<
D.
=4,5<
E.
=9,<<<
SUPPORTING C'LCUL'TION3 Jo+ !<4< =!,<<< =4<,<<< ="<,<<< =),<<< =!<<,<<< =9,<<<
Direct materials = $9,000
E
!. !.
$2,250 .9
$2,250 = $4,250
F#en #enttino ino Co&( Co&(o o&#ti &#tion on -#7e -#7ess #u-i u-inu nu- 0#st 0#sten ene e&s. &s. '-on -on F#en #enttino> ino>ss !9 !9
-#nu0#tu&in osts :e&e3 #es #n$ s##&ies3 M#/ine o(e&#to&s
=%<,<<<
8#to&1 su(e&2iso&s
"<,<<<
M#/ine -e/#nis
<,<<<
Di&et #+o& #-ounte$ to3
5"
C/#(te& 5
C.
=!!<,<<<
D.
=!"<,<<<
E.
none o0 t/e #+o2e
Jo+ O&$e& Costin
B
!". !".
54
Ru$o u$o(/o (/o Co&(o &(o&#ti &#tion on -#7e #7es #u#u-in inuu- 0#s 0#stene tene&s &s.. '-on '-on Ru$o u$o(/ (/o> o>ss !9 9
-#nu0#tu&in osts :e&e3 M#te&i#s #n$ su((ies3 'u-inu-
=4<<,<<<
M#/ine (#&ts
!%,<<<
Lu+&i#nts 0o& -#/ines
5,<<<
Di&et -#te&i#s #-ounte$ to3
C
!4.
'.
=",<<<
B.
=4<<,<<<
C.
=4<5,<<<
D.
=4!%,<<<
E.
=4",<<<
Seete$ ost $# $#t# Ai Ain t/ t/ous#n$s o one&nin t/ t/e (# (#st 0i0is# 1e 1e#&>s
o(e&#tions o0 t/e Moso: M#nu0#tu&in Co-(#n1 #&e (&esente$ +eo:.
In2ento&ies
Beinnin M#te&i#s
En$in =)5
= %5
o&7 in (&oess
%<
"<
8inis/e$ oo$s
9<
!!<
M#te&i#s use$, ="; Tot# -#nu0#tu&in osts /#&e$ to (&o$ution $u&in t/e 1e#& Ainu$in A inu$in $i&et -#te&i#s, $i&et #+o&, #n$ 0#to&1 o2e&/e#$ #((ie$ #t t/e &#te o0 ;< o0 $i&et #+o& ost, =;%; Cost o0 oo$s #2#i#+e 0o& s#e, =%; Sein #n$ ene&# e(enses, =5
55
C/#(te& 5
T/e ost o0 $i&et -#te&i#s (u&/#se$ $u&in t/e 1e#& #-ounte$ to3 '.
=";<
B.
="!;
C.
="";
D.
=4!!
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 ="; =%5 =%5 =)5 ="";
Jo+ O&$e& Costin
C
!5.
;!
Seete$ ost $# $#t# Ai Ain t/ t/ous#n$s o one&nin t/ t/e (# (#st 0i0is# 1e 1e#&>s
o(e&#tions o0 t/e Moso: M#nu0#tu&in Co-(#n1 #&e (&esente$ +eo:.
In2ento&ies
Beinnin
En$in
M#te&i#s
=)5
= %5
o&7 in (&oess
%<
"<
8inis/e$ oo$s
9<
!!<
M#te&i#s use$, ="; Tot# -#nu0#tu&in osts /#&e$ to (&o$ution $u&in t/e 1e#& Ainu$in $i&et -#te&i#s, $i&et #+o&, #n$ 0#to&1 o2e&/e#$ #((ie$ #t t/e &#te o0 ;< o0 $i&et #+o& ost, =;%; Cost o0 oo$s #2#i#+e 0o& s#e, =%; Sein #n$ ene&# e(enses, =5 Di&et #+o& osts /#&e$ to (&o$ution $u&in t/e 1e#& #-ounte$ to3 '.
=!;
B.
=!"5
C.
=5
D.
=";<
E.
none o0 t/e #+o2e
SUPPO UPPOR RTING TING C'LC C'LCU UL'TI L'TIO ON3
=;%; =;%; ="; "; G .;G
G =5
'
!;.
Seete$ ost $# $#t# Ai Ain t/ t/ous#n$s o one&nin t/ t/e (# (#st 0i0is# 1e 1e#&>s
o(e&#tions o0 t/e Moso: M#nu0#tu&in Co-(#n1 #&e (&esente$ +eo:.
In2ento&ies
;!
;
C/#(te& 5
Beinnin
En$in
M#te&i#s
=)5
=
%5
o&7 in (&oess
%<
"<
8inis/e$ oo$s
9<
!!<
M#te&i#s use$, ="; Tot# -#nu0#tu&in osts /#&e$ to (&o$ution $u&in t/e 1e#& Ainu$in $i&et -#te&i#s, $i&et #+o&, #n$ 0#to&1 o2e&/e#$ #((ie$ #t t/e &#te o0 ;< o0 $i&et #+o& ost, =;%; Cost o0 oo$s #2#i#+e 0o& s#e, =%; Sein #n$ ene&# e(enses, =5 T/e ost o0 oo$s -#nu0#tu&e$ $u&in t/e 1e#& :#s3 '.
=)";
B.
=)!;
C.
=;";
D.
=);;
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =%< =;%; ="< =)";
PROCESS COSTING
MULTIPLE CHOICE
Question Nos. !, )!, !%", !% ", #n$ %" #&e 'ICP' #$#(te$.
;
Jo+ O&$e& Costin
B
!.
;"
'n e6ui2#ent unit o0 -#te&i# o& on2e&sion ost is e6u# to3 '.
t/e (&i-e ost
B.
t/e t/e #-o #-oun untt o0 -#te -#te&i &i# # o& o& on on2e 2e&s &sio ion n ost ost nee neess ss#& #&11 to to oo-( (et ete e one one
unit o0 (&o$ution C.
# unit o0 o0 :o&7 in in (& (&oess in in2ento& to&1
D.
t/e t/e #-o #-oun untt o0 -#te -#te&i &i# # o& o& on on2e 2e&s &sio ion n ost ost nee neess ss#& #&11 to to st# st#&t &t # unit unit o0 o0
(&o$ution into :o&7 in (&oess E.
5< 5< o0 o0 t/e t/e -#te -#te&i &i# # o& o& on on2e 2e&s &sio ion n os ostt o0 o0 # unit unit o0 0ini 0inis/ s/e$ e$ oo oo$s $s
in2ento&1, #ssu-in # ine#& (&o$ution (#tte&n B
.
T/e (& (&o$ut 00o: 0o 0o&-#t :/ :/e&e e e&t#in (o (o&tions o0 o0 t/ t/e :o :o&7 #& #&e $o $one
si-ut#neous1 #n$ t/en +&ou/t toet/e& 0o& o-(etion is #e$3
C
C
".
4.
'.
#((ie$
B.
(#&#e
C.
st#n$#&$
D.
seeti2e
E.
se6uenti#
'n ite- t/#t $oes not #((e#& on # ost o0 (&o$ution &e(o&t is3 '.
:o&7 in (&oess C+einnin in2ento&1
B.
u-u u-u# #ti ti2e 2e ost ostss t/& t/&ou ou/ / t/e t/e en$ en$ o o00 $e( $e(#& #&tt-en ent# t# (&o (&o$u $ut tio ion n
C.
0inis/e$ oo$s Cen$in in2ento&1
D.
-#te&i#s use$ in t/e $e(#&t (#&t-ent
E.
unit nit o osts #$ #$$e$ +1 +1 t/e $e(#&t-ent
Goo$e M#nu0#t #tu&in &in /# /#s t/ t/&ee &ee (&o (&o$ $uin $e $e(#&t-ents in itits 0# 0#to&1. T/ T/e
en$in in2ento&1 in t/e Miin De(#&t-ent onsiste$ o0 ",<<< units. T/ese units :e&e ;< o-(ete :it/ &es(et to #+o& #n$ 0#to&1 o2e&/e#$. M#te&i#s #&e #((ie$ #t t/e en$ o0 t/e -iin (&oess. Unit osts 0o& t/e o-(ete (&oess in t/e Miin De(#&t-ent #&e3 -#te&i#s, =!? #+o&, =? #n$ 0#to&1 o2e&/e#$, =". T/e #((&o(&i#te unit ost 0o& e#/ unit
;"
;4
C/#(te& 5
in t/e en$in in2ento&1 is3 '.
=
B.
=5
C.
="
D.
=;
E.
=4
SUPPORTING C'LCUL'TION3 ;< A= =" ="
;4
P&oess Costin
D
5.
;5
/en #$$e$ -#te&i#s in su+se6uent $e(#&t-ents &esut ut in in #n in&e# &e#se o0
t/e units (&o$ue$, t/e unit t&#ns0e&&e$in osts :i3
E
;.
'.
+e &e#ssi0ie$ #s ne: -#te&i# &i#s
B.
+e in& in&e# e#se se$ $ to to (&o (&o2i 2i$e $e 0o& 0o& t/e t/e #$$ #$$it itio ion# n# uni units ts
C.
+e #o #oun unte te$ $ 0o& 0o& un$e un$e&& t/e t/e 0i0o 0i0o ost ostin in -et -et/o /o$ $
D.
+e $e& $e&e# e#se se$ $ #s #s t/e1 t/e1 #&e #&e s(&e s(&e#$ #$ o2e& o2e& -o&e -o&e unit unitss
E.
&e-#in un/#ne$
G1&o P&o$uts t&#ns0e&&e &&e$ !<,<< ,<<< uni units ts to one $e(#&t-ent. 'n 'n #$$ition tion# #
",<<< units o0 -#te&i#s :e&e #$$e$ in t/e $e(#&t-ent. 't t/e en$ o0 t/e -ont/, ),<<< units :e&e t&#ns0e&&e$ to t/e net $e(#&t-ent. T/e&e :#s no +einnin in2ento&1. T/e osts 0o& units t&#ns0e&&e$ in :ou$ +e e00eti2e1 #o#te$ o2e&3 '.
!),<<<
B.
",<<< units
C.
!<,<<<
D.
),<<< units
E.
!",<<<
units units units
SUPP SUPPOR ORTI TING NG C'L C'LCU CUL' L'TI TION ON33
),<<< ),<<< unit unitss t&#ns t&#ns0e 0e&& &&e$ e$ out out ;,<< ;,<<< < unit unitss
in en$in in2ento&1 !",<<< units E
).
' /#&#te&isti o0 # (&oess ostin s1ste- is t/#t3 '.
osts #& #&e # #u-u#te$ +1 +1 o& o&$e&
B.
it is use$ use$ +1 # oo-(# (#n1 n1 -#nu -#nu0# 0#t tu& u&in in us usto to- -# -#/i /ine ne&1 &1
C.
st#n$#& $#&$ o osts #& #&e no not #( #((i#+ #+e
D.
it &e6u &e6ui& i&es es # ot ot -o&e -o&e $et# $et#iie$ e$ # #ou ount ntin in t/#n t/#n $oes $oes # *o+ *o+ o&$e o&$e&&
E.
:o&7 :o&7 in (&o (&oes esss in2 in2en ento to&1 &1 is &est &est#t #te$ e$ in in te& te&-s -s o0 o-( o-(e ete te$ $ uni units ts
s1ste-
D
%.
T&#ns0e&&e$in in osts #s use$ in # (&oess ost #ount untin s1ste- #&e3
;;
C/#(te& ;
'.
su(e su(e&2i &2iso so&1 &1 s# s##& #&ie iess t/#t t/#t #&e #&e t&# t&#ns ns0e 0e&&e &&e$ $ 0&o0&o- #n o2e o2e&/ &/e# e#$ $ ost ost en ente te&&
to # (&o$ution ost ente& B.
en$i en$in n :o& :o&77 in in (&o (&oes esss in2e in2ent nto& o&11 o0 # (&e (&e2i 2iou ouss (&o (&oe ess ss t/# t/#tt :i :i +e +e
use$ in # suee$in (&oess C.
#+o #+o&& t/#t t/#t is is t&#n t&#ns0 s0e& e&&e &e$ $ 0&o 0&o- #no #not/ t/e& e& $e( $e(#& #&tt-en entt :it/ :it/in in t/e t/e s#s#-e e
(#nt inste#$ o0 /i&in te-(o&#&1 :o&7e&s 0&o- t/e outsi$e D.
ost ostss o0 o0 t/e t/e (&o$ (&o$u utt o0 o0 # (&e2 (&e2io ious us inte inte&n &n# # (&o (&oes esss t/# t/#tt is is
su+se6uent1 use$ in # suee$in inte&n# (&oess E. E
9.
none o0 t/e #+o2e
In # (&oess ostin s1 s1ste-, /o: is t/e unit ost #00ete$ in # (&o$utio tion
ost &e(o&t :/en -#te&i#s #&e #$$e$ in # $e(#&t-ent su+se6uent to t/e 0i&st $e(#&t-ent #n$ t/e #$$e$ -#te&i#s &esut in #$$ition# units@ '.
T/e T/ e 0i& 0i&st st $e(# $e(#&t &t-e -ent nt>s >s unit unit ost ost is in& in&e# e#se se$, $, +ut +ut itit $oe $oess not not
neessit#te #n #$*ust-ent o0 t/e t&#ns0e&&e$in unit ost. B.
T/e T/ e 0i& 0i&st st $e(# $e(#&t &t-e -ent nt>s >s unit unit ost ost is $e& $e&e# e#se se$, $, +ut +ut itit $oe $oess not not
neessit#te #n #$*ust-ent o0 t/e t&#ns0e&&e$in unit ost. C.
T/e T/ e 0i& 0i&st st $e(# $e(#&t &t-e -ent nt>s >s unit unit ost ost is not not #00 #00e ete te$. $.
D.
T/e T/ e 0i&s 0i&stt $e(# $e(#&t &t-e -ent nt>s >s uni unitt ost ost is is in& in&e# e#se se$, $, :/i :/i/ / ne nees essi sit# t#te tess #n
#$*ust-ent o0 t/e t&#ns0e&&e$in unit ost. E.
T/e T/ e 0i& 0i&st st $e(# $e(#&t &t-e -ent nt>s >s uni unitt ost ost is $e& $e&e# e#se se$, $, :/i :/i/ / ne nees essi sit# t#te tess #n #n
#$*ust-ent o0 t/e t&#ns0e&&e$in unit ost.
P&oess Costin
E
!< .
;)
'ssu-in t/ t/#t t/ t/e&e :# :#s no no +e +einni nnin :o :o&7 in in (& (&oess in in2ento&1 #n #n$ t/ t/e
en$in :o&7 in (&oess in2ento&1 is 5< o-(ete #s to on2e&sion osts, t/e nu-+e& o0 e6ui2#ent units #s to on2e&sion osts :ou$ +e3
'
!!.
'.
ess t/#n t/e units o-(ete$
B.
-o&e t/#n t/e units o-(ete$
C.
t/e t/e s#s#-e #s t/e t/e units nits (#e #e$ $ in (&oe &oesss
D.
t/e s# s#-e #s #s t/ t/e un units o o-(ete$
E.
ess t/ t/#n t/ t/e un units ( (#e$ in in (& (&oess
'n e& e&&o& :# :#s -# -#$e in in t/ t/e o o-(ut#tion tion o0 t/ t/e (e (e&ent#e o0 o0 o o-(etion tion o0
t/e u&&ent 1e#&>s en$in :o&7 in (&oess in2ento&1. T/e T /e e&&o& &esute$ in #ssinin # o:e& (e&ent#e o0 o-(etion to e#/ o-(onent o0 t/e in2ento&1 t/#n #tu#1 :#s t/e #se. /#t is t/e e00et o0 t/is e&&o& u(on3 A! A!
t/e t/e oo-(u (ut# t#ti tion on o0 e6ui e6ui2# 2#e ent nt uni units ts in in tot tot# #
A A
t/e t/e oo-(u (ut# t#ti tion on o0 ost ostss (e& (e& e6ui e6ui2# 2#e ent nt unit unit
A" A"
ost ostss #ssi #ssin ne$ e$ to to ost ost o0 o0 oo$ oo$ss o-( o-(e ete te$ $ 0o& 0o& t/e t/e (e&i (e&io$ o$ A!
C
!.
A
A"
'.
un$e&st#te
o2e&st#te
o2e&st#te
B.
un$e&st#te
un$e&st#te
o2e&st#te
C.
o2e&st#te
un$e&st#te
un$e&st#te
D.
o2e&st#te
o2e&st#te
un$e&st#te
E.
none o0 t/e #+o2e
Re#$, In In. in institute$ # ne ne: (& (&oess in in O Oto+e&. Du Du&in O Oto+e&, !< !<,<< ,<<<
units :e&e st#&te$ in De(#&t-ent '. O0 t/e units st#&te$, ),<<< :e&e t&#ns0e&&e$ to De(#&t-ent B, #n$ ",<<< &e-#ine$ in :o&7 in (&oess #t Oto+e& "!. T/e :o&7 in (&oess #t Oto+e& "! :#s !<< o-(ete #s to -#te&i# osts #n$ 5< o-(ete #s to on2e&sion osts. M#te&i#s osts o0 =),<<< #n$ on2e&sion osts o0 ="9,95< :e&e /#&e$ to De(#&t-ent ' in Oto+e&. /#t :e&e t/e tot# osts t&#ns0e&&e$ to De(#&t-ent B@
;%
C/#(te& ;
'.
=4;,9<<
B.
=5",;<<
C.
=5!,%<<
D.
=5),!<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 M#te&i#s unit ost =),<<<
A),<<< ",<<< =.)<
Con2e&sion unit ost ="9,95<
),<<< 5<A",<<< =4.)<
Costs t&#ns0e&&e$ ),<<
!". !".
In #ou ount ntiin 0o& 0o& +ein einni nin n in2e in2ent nto& o&11 osts osts,, t/e t/e -et/ -et/o o$ t/#t /#t #o #o:s :s t/e
#$$ition o0 +einnin in2ento&1 osts :it/ osts inu&&e$ $u&in t/e (e&io$ is &e0e&&e$ to #s3 '.
0i&stin, 0i0i&stout
B.
#$$ition
C.
#stin, 0i&stout
D.
#2e&#e
E.
0i&stin, #stout
P&oess Costin
E
!4.
;9
C/i#o P& P&oessin Co Co. us uses t/ t/e #2 #2e&#e o ostin -e -et/o$ #n #n$ &e &e(o&te$ #
+einnin in2ento&1 o0 5,<<< units t/#t :e&e < o-(ete :it/ &es(et to -#te&i#s in one $e(#&t-ent. Du&in t/e -ont/, !!,<<< units :e&e st#&te$? %,<<< units :e&e 0inis/e$? en$in in2ento&1 #-ounte$ to %,<<< units t/#t :e&e ;< o-(ete :it/ &es(et to -#te&i#s. Tot# -#te&i#s ost $u&in t/e (e&io$ 0o& :o&7 in (&oess s/ou$ +e s(&e#$ o2e&3 '.
),<< units
B.
!;,<<<
C.
!!,<< units
D.
!",<<
units
E.
!,%<<
units
units
SUPPORTING C'LCUL'TION3 %,<<< .;
!5. !5.
In $ete ete&-in &-iniin t/e ost ost o0 o0 oo$ oo$s t&#n t&#nss0e&& 0e&&e$ e$ in 0&o 0&o- # (&e2i &e2io ous $e(# $e(#&t &t-e -ent nt
un$e& t/e #2e&#e ost -et/o$3 '.
# si si-(e #2 #2e&# &#e o0 o0 un unit o osts is is us use$
B.
+ei +einn nnin in in2e in2ent nto& o&11 ost ostss #&e #&e se(# se(#&# &#te te$ $ 0&o0&o- ost ostss t&# t&#ns ns0e 0e&& &&e$ e$ in in
$u&in t/e (e&io$ C.
# 0i&s 0i&st tin in,, 0i& 0i&st sto out ut #(( #((&o# &o#/ / is use$ se$
D.
e6ui e6ui2# 2#e ent nt (&o (&o$u $ut tio ion n in en$i en$in n in2 in2en ento to&1 &1 is is se(# se(#&# &#te te$ $ 0&o0&o- ot/e ot/e&&
t&#ns0e&&e$in osts E. E
!;.
# :ei :ei/te /te$ $ #2e #2e&#e &#e o0 unit unit ost osts is use$ se$
T/e #2 #2e&# &#e #n #n$ 0i0i0o (& (&oess o ostin -e -et/o$s $i $i00e& in in t/ t/#t t/ t/e #2 #2e&#e
-et/o$3
C.
'.
#n +e use$ use$ un$ un$e& #n1 #n1 o ost 0o: 0o: #ssussu-( (tion tion
B.
is -u/ -u/ -o&e -o&e $i00 $i00i iu utt to to #(( #((1 1 t/#n t/#n t/e t/e 0i0 0i0o o -et -et/o /o$ $
&e6u &e6ui& i&es es t/# t/#tt en$i en$in n :o&7 :o&7 in in (&o (&oes esss in2en in2ento to&1 &1 +e st# st#te te$ $ in te&te&-ss o0 e6ui e6ui2# 2#e ent nt
units o0 (&o$ution
)<
C/#(te& ;
D.
ons onsi$ i$e& e&ss t/e t/e en$i en$in n :o& :o&77 in (&o (&oes esss in2e in2ent nto& o&11 on1 on1 (#& (#&ti ti# #1 1 oo-( (ete ete
E.
$oes $oes not not on onsi si$e $e&& t/e t/e $e& $e&ee ee o0 o-( o-(e eti tion on o0 +ei +einn nnin in :o& :o&77 in in
(&oess in2ento&1 :/en o-(utin e6ui2#ent units o0 (&o$ution '
!).
T/e 0i&st ste( in #( #((1in t/ t/e #2e&#e ost -et/o$ is is to3 '.
#$$ #$$ t/e t/e +ei +einn nnin in :o& :o&77 in in (&o (&oe ess ss ost ostss to to t/e t/e u&&e u&&ent nt (e&i (e&io$ o$>s >s
(&o$ution osts B.
$i2i $i2i$e $e t/e t/e u& u&&e &ent nt (e&i (e&io$ o$>s >s (&o (&o$u $ut tio ion n ost ostss +1 +1 t/e t/e e6u e6ui2 i2# #en entt unit unitss
C.
su+t su+t&# &#t t t/e t/e +e +ein inni nin n :o& :o&77 in in (&o (&oes esss ost ostss 0&o0&o- t/e t/e u& u&&e &ent nt (e& (e&io io$>s $>s
(&o$ution osts
C
!%.
D.
' #n$ B
E.
B #n$ C
Beinni nnin :o :o&7 in in (& (&oess :# :#s ;< ;< o o-(ete ete #s #s to to o on2e&si &sion o osts, #n #n$
en$in :o&7 in (&oess :#s 45 o-(ete #s to on2e&sion osts. T/e $o#& #-ount o0 t/e on2e&sion ost inu$e$ in en$in :o&7 in (&oess Ausin t/e #2e&#e ost -et/o$ is $ete&-ine$ +1 -uti(1in t/e #2e&#e unit on2e&sion osts +1 :/#t (e&ent#e o0 t/e tot# units in en$in :o&7 in (&oess@ '.
;<
B.
55
C.
45
D.
5
E.
!<<
P&oess Costin
C
!9. !9.
)!
Do2e o2e& Co Co&(o& &(o&#t #tio ion> n>ss (&o (&o$u $ut tio ion n 1 1e e st st#&ts #&ts in t/e t/e Mi Miiin De(#& e(#&tt-e ent. nt. T T/ /e
0oo:in in0o&-#tion is #2#i#+e 0o& '(&i3 Units o&7 in (&oess, '(&i ! A5< o-(ete St#&te$ in '(&i
4<,<<<
4<,<<<
o&7 in (&oess, '(&i "< A;< o-(ete
5,<<<
M#te&i#s #&e #$$e$ #t t/e +einnin o0 t/e (&oess in t/e Miin De(#&t-ent. Usin t/e #2e&#e ost -et/o$, :/#t #&e t/e e6ui2#ent units o0 (&o$ution 0o& t/e -ont/ o0 '(&i@ M#te&i#s
Con2e&sion
'.
55,<<<
55,<<<
B.
)<,<<<
%<,<<<
C.
%<,<<<
)<,<<<
D.
"<5,<<<
)5,<<<
E.
4<,<<<
5<,<<<
SUPPORTING C'LCUL'TION3 M#te&i#s 4<,<<< 4<,<<< %<,<<< Con2e&sion A%<,<<< 5,<<< .;A5,<<< )<,<<< B
<. <.
In0o n0o&-#t &-#tio ion n one one&n &niin De(#& e(#&tt-e ent ' o0 Nee Neee1 e1 Co-( Co-(#n #n11 0o& 0o& Jun June is #s
0oo:s3 M#te&i#s Units
Costs
Beinnin :o&7 in (&oess St#&te$ in June
!),<<< %,<<<
=!,%<<
;9,)<<
)
C/#(te& ;
Units o-(ete$
%5,<<<
En$in :o&7 in (&oess
!4,<<<
' -#te&i#s #&e #$$e$ #t t/e +einnin o0 t/e (&oess. Usin t/e #2e&#e ost -et/o$, t/e ost (e& e6ui2#ent unit 0o& -#te&i#s is3 '.
=<.%5
B.
=<.%""
C.
=<.%5
D.
=<.9)
E.
=!.
SUPPORTING C'LCUL'TION3 A=!,%<< =;9,)<< !4,<<< =.%""
A%5,<<<
!"4
B
C/#(te& ;
!.
enne$ ne$1 Co Co-(#n1 #$ #$$s -# -#te&i#s in in t/ t/e +e +einnin o0 o0 t/ t/e (& (&oess in in t/ t/e
8o&-in De(#&t-ent, :/i/ is t/e 0i&st o0 t:o st#es o0 its (&o$ution 1e. In0o&-#tion one&nin t/e -#te&i#s use$ in t/e 8o&-in De(#&t-ent in Oto+e& is #s 0oo:s3 M#te&i#s Units
Costs o&7 in (&oess, Oto+e& !
Units st#&te$
5<,<<<
;,<<< = ",<<<
5,5;<
Units o-(ete$ #n$ t&#ns0e&&e$ out
44,<<<
Usin t/e #2e&#e ost -et/o$, :/#t :#s t/e -#te&i#s ost o0 :o&7 in (&oess #t Oto+e& "!@ '.
=",<<<
B.
=;,!<
C.
=",<;<
D.
=5,5<
E.
=;,<<<
SUPPORTING C'LCUL'TION3 A=",<<< =5,5;<
A44,<<< !,<<< =.5!
=.5! !,<<< =;,!< E
. .
Roe oe& Co-( Co-(#n #n11 -#n -#nu0# u0#tu tu&es &es P&o P&o$u $ut K in # t:o t:ost# st# e (&o (&o$u $ut tio ion n 1 1e e in
De(#&t-ents ' #n$ B. M#te&i#s #&e #$$e$ #t t/e +einnin o0 t/e (&oess in De(#&t-ent B. Roe& uses t/e #2e&#e ostin -et/o$. Con2e&sion osts 0o& De(#&t-ent B :e&e 5< o-(ete #s to t/e ;,<<< units in +einnin :o&7 in (&oess #n$ )5 o-(ete #s to t/e %,<<< units in en$in :o&7 in (&oess. ' tot# o0 !,<<< units :e&e o-(ete$ #n$ t&#ns0e&&e$ out o0 De(#&t-ent B $u&in 8e+&u#&1. 'n #n#1sis o0 t/e osts &e#tin to :o&7
!"4
P&oess Costin
!"5
in (&oess #n$ (&o$ution #ti2it1 in De(#&t-ent B 0o& 8e+&u#&1 0oo:s3 T&#ns0e&&e$ M#te&i#s in Costs
Con2e&sion
Costs
Costs
o&7 in (&oess, 8e+&u#&1 !3 Costs #tt#/e$
=!,<<<
=,5<<
=!,<<<
8e+&u#&1 #ti2it13 Costs #$$e$
9,<<<
5,5<< 5,<<<
T/e tot# ost (e& e6ui2#ent unit t&#ns0e&&e$ out 0o& 8e+&u#&1 o0 P&o$ut K, &oun$e$ to t/e ne#&est (enn1, :#s3 '.
=.%
B.
=.%5
C.
=.<5
D.
=.)5
E.
=.)%
SUPPORTING C'LCUL'TION3 T&#ns0e&&e$in osts =4!,<<< M#te&i#s ost =%,<<<
Con2e&sion ost =;,<<<
< <,<<<
<,<<<
=.<5
!%,<<<
=.)% JUSTINTIME 'ND B'C8LUSHING
MULTIPLE CHOICE
!"5
.4< .""
!";
D
'
C/#(te& ;
!.
.
One o0 t/e &e &e6ui&e-ents 0o& # JIT s1ste- to +e suess0u is is3 '.
1i# (& (&o$ution
B.
#$e6u#te in2ento&1 sto7
C.
ou(in itit :i :it/ *o+ *o+ o&$e& ostin tin
D.
/i/ 6u 6u#it1 #n #n$ +# +##ne$ :o&7 o o#$s
E.
# o0 t/e #+o2e
' o0 t/e 0oo:in :in #&e te&-s use$ to $es&i+e t/e JIT e00o&t to &e$ue
in2ento&ies o0 :o&7 in (&oess #n$ &#: -#te&i#s, eGe(t3
C
C
".
4.
'.
+#70us/ (&o$ution
B.
sto7ess (&o$ution
C.
e#n (&o$ution
D.
IP (&o$ution
E.
none one o0 t/e t/e #+o2e +o2e #&e #((&o ((&o(& (&i# i#te te te&te&-ss
T/e JIT (&o$ution i$e# is # +#t/ sie o03 '.
one /un$&e$
B.
ten
C.
one
D.
e&o
E.
none o0 t/e #+o2e
T/e o+ o+*eti2 ti2e o0 o0 &e &e$uin in in2ento&1 to to e e&o is is (o (ossi+e i0i0 # # o0 o0 t/ t/e 0o 0oo: o:in
on$itions #&e (&esent, eGe(t3 '.
o: o& insini0i#nt setu( osts
B.
-ini-u- e#$ ti-es
C.
on setu( ti-es
D.
+##ne$ #n$ e e2e :o&7 o#$s
E.
no in inte&&u( &u(tions $ue to sto7out outs
!";
P&oess Costin
D
5.
!")
T/e o ontinuin &e &e$ution o0 o0 in in2ento&ies is # #/ie2e$ +1 +1 # # o0 o0 t/ t/e 0o 0oo:in
ste(s eGe(t3 '.
in2e in2ent nto& o&ie iess #&e #&e &e$u &e$ue e$ $ unt untii # (&o+ &o+ee- is $is $iso2 o2e& e&e$ e$
B.
one one t/e t/e (&o+ (&o+e e- is $e0i $e0ine ne$ $ t/e t/e in2 in2en ento to&1 &1 e2e e2e is in& in&e# e#se se$ $ to 7ee( 7ee(
t/e s1ste- o(e&#tin s-oot/1 C.
t/e t/e (&o (&o+ +ee- is is #n# #n#1 1e$ e$ #n$ #n$ (&# (&#t ti i# # :#1 :#1ss #&e #&e i$e i$ent nti0 i0ie ie$ $ to &e$u &e$ue e itit
D.
one one t/e t/e (&o+ (&o+e e- is &e-o &e-o2e 2e$, $, t/e t/e in2 in2en ento& to&11 e2 e2e e is is in& in&e# e#se se$ $ unt untii
#not/e& (&o+e- is $iso2e&e$ E.
# o0 t/e #+o2e ste(s #&e &e6ui& ui&e$
!")
!"%
B
D
C/#(te& !<
;.
).
In # JIT s1ste-, 2eoit1 is in2e&se1 &e#te$ to3 '.
+#70us/in
B.
t/&ou/(ut ti-e
C.
#ee&#tion
D.
e&o in2ento&1 (&o$ution
E.
none o0 t/e #+o2e
I0 5< 5<< un units #& #&e (& (&o$ue$ (e (e& $# $#1 #n #n$ , ,<<< un units #& #&e in in (& (&oess #t #t #n #n1
ti-e, t/e t/&ou/(ut ti-e is3 '.
! $#1
B.
!4 $#1
C.
t:o $#1s
D.
0ou& $#1s
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 2,000 500
D
%.
= 4 days
In # JIT ss11ste-, i0i0 t/ t/e &# &#te o0 o0 ou out(ut is is $o $ou+e$ :/ :/ie t/ t/e nu nu-+e& o0 un units in in
(&oess is ut in /#0, t/en t/e s(ee$ o0 t/e s1ste- /#s +een3
'
9.
'.
&e$ue$ +1 5
B.
$ou+e$
C.
&e$ue$ +1 5<
D.
6u#$&u(e$
E.
none o0 t/e #+o2e
O0 t/ t/e 0o 0oo:in, t/ t/e o on n1 # #ti2it1 t/ t/#t #$ #$$s 2# 2#ue to to # ( (&&o$ut is is3 '.
(&oessin ti-e
B.
-o2in ti-e
JustinTi-e #n$ B#70us/in
B
!<. !<.
C.
:#itin ti-e
D.
ins(etion ti-e
E.
# o0 t/e #+o2e
!"9
I0 t/e t/e #nn #nnu# u# # #&&1 &&1in in os ostt (e& (e&ent ent#e #e is is "< "< #n$ #n$ #2e #2e&#e &#e :o& :o&7 in (&o (&oes esss
is ="<<,<<< #n$ -#n#e-ent (#ns to use JIT to $ou+e t/e 2eoit1 o0 :o&7 in (&oess :it/out /#nin tot# #nnu# out(ut, t/e s#2ins in #nnu# #&&1in osts :i +e3 '.
=9<,<<<
B.
=45,<<<
C.
=!5<,<<<
D.
=!%<,<<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 "< ! ="<<,<<< =45,<<<
!4<
'
C/#(te& !<
!!.
I0 St Ste( ! in # (&o$ &o$ution (& (&oess (&o (&oesses e# e#/ un unit #n #n$ se sen$s itit to to #: #:#it
Ste( , #n$ 5<< units #&e :#itin +et:een Ste(s ! #n$ , /o: -#n1 $e0eti2e units -i/t Ste( ! (&o$ue +e0o&e t/e (&o+e- is $etete$ in Ste( @
C
!.
'.
5<<
B.
#n uni-ite$ nu-+e&
C.
5<
D.
!,<<<
E.
none o0 t/e #+o2e
'ssu-e t/ t/#t # o-(#n1 ( (#ns # &e$ution in in :o :o&7 in in (& (&oess e e2es o0 o0 5< 5<
#n$ /#s #n #nnu# in2ento&1 #&&1in ost o0 < #n$ # (#st #2e&#e ost o0 :o&7 in (&oess o0 =)5,<<<. =)5,<<<. T/e 5< &e$ution &e$ution in :o&7 in (&oess :ou$ +e e(ete$ to (&o$ue #nnu# s#2ins o03 '.
="),5<<
B.
=!5,<<<
C.
=),5<<
D.
=",)5<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 5< < =)5,<<< =),5<< E
!".
'(/# Co Co-(#n1 /# /#s !< !< :o :o&7 st st#tions :/ :/e&e :o :o&7 in in (& (&oess is is /e /e$, !< !<<
#2e&#e units in :o&7 in (&oess (e& st#tion, #n #2e&#e ost o0 # unit in :o&7 in (&oess o0 =)5, #n$ #n #nnu# #nnu# in2ento&1 #&&1in #&&1in ost o0 <. <. I0 '(/# (#ns # 5< &e$ution in :o&7 in (&oess e2es, t/e e(ete$ #nnu# s#2ins in #&&1in osts :ou$ +e3 '.
="),5<<
B.
=!5,<<<
C.
="<,<<<
JustinTi-e #n$ B#70us/in
D.
=",)5<
E.
none o0 t/e #+o2e
!4!
SUPPORTING C'LCUL'TION3 5< < A!< !<< =)5 =),5<< B
!4.
Bet# Co Co-(#n1 /# /#s #n #n #2 #2e&# &#e $o $o#& o oss (e (e& $e $e0eti2e un unit o0 o0 =5, #
(#nne$ &e$ution in nu-+e& o0 $e0eti2e units (&o$ue$ (e& outo0ont&o on$ition o0 5, #n$ t/e nu-+e& nu-+e& o0 outo0ont&o on$itions not $iso2e&e$ i--e$i#te1 i--e$i#te1 is 5<. T/e e(ete$ s#2ins in ost o0 $e0ets :ou$ +e3 '.
=!,5<
B.
="!,5<
C.
=;,5<
D.
=!5
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =5 5 5< ="!,5<
!4
B
C/#(te& !<
!5.
Bet# Co Co-(#n1 /# /#s #n #n #2 #2e&# &#e $o $o#& o oss (e (e& $e $e0eti2e un unit o0 o0 =5, #
(#nne$ &e$ution in :o&7 in (&oess e2es o0 5<, #n$ #n #2e&#e nu-+e& o0 units in :o&7 in (&oess (&oess (e& st#tion o0 o0 !<<. 'ssu-e t/#t t/e t/e tot# nu-+e& o0 inst#nes in :/i/ :/i/ so-e :o&7 st#tion oes out o0 ont&o i-its #n$ (&o$ues $e0ets is e(ete$ to +e 5<< #nnu#1 #n$ t/#t in /#0 t/ose inst#nes t/e outo0ont&o on$ition is not $iso2e&e$ i--e$i#te1 #n$ ente&s ente&s !< o0 t/e units (&o$ue$. T/e e(ete$ #nnu# #nnu# s#2ins in ost o0 $e0eti2e units :ou$ +e3 '.
=!,5<
B.
="!,5<
C.
=;,5<
D.
=!5
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =5 A5< !<< !< A! 5<< ="!,5< D
!;. !;.
T/e T/ e os osts ts to +e o00s 00set ##i ##ins nstt t/e t/e s#2in #2ins s 0&o&o- o:e o:e&& :o&7 :o&7 in (&o (&oes ess e2e e2es
in # JIT s1ste- inu$e # o0 t/e 0oo:in, eGe(t3 '.
/#n$ /#n$iin n # #& #&e& e& nu-+ nu-+e& e& o0 s-# s-# +#t +#t/ /es es o0 :o&7 :o&7 in (&o (&oes esss
B.
t/e t/e /i /i/e /e&& (&o (&o+# +#+i +iiit1 t1 o0 o0 s/u s/ut$ t$o: o:ns ns $ue $ue to to t/e t/e s-# s-#e e&& s#0 s#0et et11 sto sto7 7
C.
t/e t/e (oss (ossi+ i+ii iit1 t1 t/# t/#tt setu setu( ( ost ostss #nn #nnot ot +e +e &e$ &e$u ue$ e$ eno enou u/ / to o00s o00set et
t/e #&e& nu-+e& o0 setu(s D.
t/e t/e (oss (ossi+ i+ii iit1 t1 o0 ust ustoo-e& e& $is $iss# s#ti tis0 s0# #ti tion on $ue $ue to to so: so:e& e& &es &es(o (ons nse e ti-e ti-e
E.
# o0 t/e #+o2e
to o&$e&s
'
!). !).
'$2#n $2#nt# t#e ess t/# t/#tt &es &esu utt 0&o 0&o- &e &e$ui $uin n &#: -#te -#te&i &i# #ss in2 in2en ento to&1 &1 in inu$e u$e # # o0 o0
t/e 0oo:in eGe(t3 '.
# $e $e&e &e#s #se$ e$ (oss (ossi+ i+iiit it11 o0 o0 not not +ein +ein #+ #+e e to to (&o (&o$u $ue e # uni unitt :/e :/en n
JustinTi-e #n$ B#70us/in
!4"
&e6ui&e$
C
!%. !%.
B.
# nee$ 0o& ess sto&#e s(#e
C.
# &e &e$ue$ &i &is7 o0 o0 o+ o+soesene
D.
# &e &e$ue$ &i &is7 o0 o0 $# $#-#e$ -# -#te&i#s
E.
# o0 o0 t/ t/e # #+ +o2e # #&&e # #$ $2#nt#es
Un$e n$e& # JIT JIT #((&o ((&o# #/ / to (u& u&/#s /#sin, in, t/e t/e i$e# $e# nunu-+e& +e& o0 2en$ en$o&s o&s 0o& 0o& e#/ e#/
-#te&i# is3
E
!9.
'.
t:o
B.
ess t/#n si
C.
one
D.
#s -# -#n1 #s #n su su((1 (1 6u 6u#it1 oo$s
E.
none o0 t/e #+o2e
' o0 t/e 0oo:in #&e o+st#es to JIT (u&/#sin, eGe(t3 '.
t/e # #1ou 1out o0 o0 t/ t/e (& (&o$ution (& (&oess
B.
t/e 0&e6 &e6uen1 o0 s/e$ue / /#nes
C.
t/e t/e #tt #ttit itu$ u$es es o0 (u& (u&/# /#si sin n #en #ents ts #n$ #n$ su( su(( (ie ie&s &s
D.
t/e $ist#ne 0&o- su((ie&s
E.
# o0 t/e #+o2e #&e o+st#es
!44
B
B
'
E
C/#(te& !<
<.
!.
.
". ".
JIT (u&/#sin ei ei-in# -in#te tess # # o0 t/e 0oo:in :in $ou-ents, eGe(t3 '.
(u&/#se &e &e6uisitions
B.
+#n7et (u&/#se o&$e&s
C.
&eei2in &e &e(o&ts
D.
-#te&i#s &e6uisitions
E.
# o0 o0 t/ t/e # #+ +o2e # #&&e e ei-in#te$
' o0 t/e 0oo:in st#te-ents #((1 to # JIT :o&7 e eGe(t t/#t3 t/#t3 '.
# e e is is &es &es(o (ons nsi+ i+e e 0o& 0o& t/e t/e enti enti&e &e (&o$ (&o$u uti tion on o0 o0 # (&o$ (&o$u utt o& o& (#& (#&tt
B.
e2e& e2e&11 :o& :o&7e 7e&& in in t/e t/e e e s(e s(ei# i#iie ess in in # sin sine e t#s7 t#s7
C.
# e e>>ss :o& :o&7e 7e&s &s -#1 -#1 +e +e e2# e2#u u#t #te$ e$ #n$ #n$ &e: &e:#& #&$e $e$ $ #s #s # te# te#-
D.
# # :o&7 :o&7e& e&ss in in # e e #&e #&e &es &es(o (ons nsi+ i+e e 0o& 0o& (&o$ (&o$u utt 6u# 6u#it it11
E.
# o0 t/e #+o2e st#te-ents #((1
' o0 t/e 0oo:in #&e JIT (e&0o&-#ne -e#su&es, eGe(t3 '.
#(#it1 utii#tion
B.
1e ti-e e00iien1
C.
in2ento&1 tu&no2e&
D.
uns/e$ue$ -# -#inten#ne $o $o:ntiti-e
E.
nu-+e& o0 $e0ets
T/e T/ e os ostt # #oun ounti tin n s1ste 1ste- t/# t/#tt is is no note$ te$ 0o 0o& itits # #7 o0 $e $et#i t#ie$ e$ t&# ti 7in n o0
:o&7 in (&oess $u&in t/e #ountin (e&io$ is3
'
4.
'.
(&oess ostin
B.
*o+ o&$e& ostin
C.
st#n$#&$ ostin
D.
#tu# ostin
E.
+#70us/ ostin
T/e o ost # #ountin tin s1ste- t/#t :o :ou$ +e +e -ost #( #(t to to us use # sine
in2ento&1 #ount entite$ R#: #n$ In P&oess ARIP :ou$ +e3
JustinTi-e #n$ B#70us/in
D
5. 5.
'.
+#70us/ ostin
B.
(&oess ostin
C.
*o+ o&$e& ostin
D.
/isto&i# ostin
E.
st#n$#&$ o ostin
!45
To +# +#70u 70uss/ -#t -#te e&i# &i#ss os ost 0&o 0&o- R#: R#: #n$ #n$ In In P&oe &oess ss ARIP RIP to 8ini 8inis/ s/e$ e$
Goo$s, t/e #u#tion :ou$ +e3 '.
-#te -#te&i &i# #ss in en$i en$in n RIP RIP in2e in2ent nto& o&11 (us (us -#t -#te& e&i# i#s s &e &eei ei2e 2e$ $ $u&in $u&in t/e t/e
(e&io$ -inus -#te&i#s in t/e +einnin RIP in2ento&1 B.
-#te -#te&i &i# #ss in in en$ en$in in 0ini 0inis/ s/e$ e$ oo$ oo$ss in2 in2en ento to&1 &1 (us (us -#te -#te&i &i# #ss ost ost
t&#ns0e&&e$ 0&o- RIP -inus -#te&i#s in +einnin 0inis/e$ oo$s in2ento&1 C.
-#te -#te&i &i# #ss in +e +ein inni nin n 0in 0inis is/e /e$ $ oo$ oo$ss in2e in2ent nto& o&11 (us (us -#t -#te& e&i# i#s s os ostt
t&#ns0e&&e$ 0&o- RIP -inus -#te&i#s in en$in 0inis/e$ oo$s in2ento&1 D.
-#te -#te&i &i# #ss in +e +ein inni nin n RIP RIP in2e in2ent nto& o&11 (us (us -#t -#te& e&i# i#s s &e &eei ei2e 2e$ $ $u&i $u&in n
t/e (e&io$ -inus -#te&i#s in en$in RIP in2ento&1 E.
none o0 t/e #+o2e
!4;
B
C/#(te& !<
;.
C/eet# Co Co-(#n1 /# /#s -# -#te&i#s ost in in t/ t/e Ju June ! R#: #n #n$ In In P& P&oess o0 o0
=!<,<<<, -#te&i#s &eei2e$ $u&in June o0 =<5,<<< #n$ -#te&i#s ost in t/e June "< R#: #n$ In P&oess o0 =!,5<<. =!,5<<. T/e #-ount to +e +#70us/e$ 0&o- R#: #n$ In P&oess to 8inis/e$ Goo$s #t t/e en$ o0 June :ou$ +e3
D
). ).
'.
=!5,<<<
B.
=<,5<<
C.
=<),5<<
D.
=!),5<<
E.
none o0 t/e #+o2e
In + +# #770us 0us/ / os osti tin n,, i0i0 t/ t/e on on2e 2e&s &siion ost ost in in t/e t/e R#: R#: #n$ #n$ In P&o &oess ess :#s :#s
=5<< on Ju1 ! #n$ =!,<<< on Ju1 "!, t/e #ount to +e &e$ite$ #t t/e en$ o0 Ju1 0o& t/e =5<< in&e#se :ou$ +e3
'
%.
'.
R#: #n$ In P&oess
B.
8inis/e$ Goo$s
C.
R#: M#te&i#s
D.
Cost o0 Goo$s So$
E.
none o0 t/e #+o2e
In +# +#70u 0us/ o ostin, i0i0 t/ t/e o on2e&sio sion o ost in in R# R#: #n #n$ In In P& P&oess :# :#s
=!,<<< on M#&/ ! #n$ =4<< on M#&/ "!, t/e #ount to +e &e$ite$ 0o& t/e =;<< $e&e#se :ou$ +e3 '.
R#: #n$ In P&oess
B.
8inis/e$ Goo$s
C.
R#: M#te&i#s
D.
Cost o0 Goo$s So$
E.
none o0 t/e #+o2e
JustinTi-e #n$ B#70us/in
!4)
PROBLEMS
PROBLEM !. Cost S#2ins 8&o8&o- S-#e& In2ento&1. In2ento&1. 'uto-#te$ 'sse-+1 Co-(#n1 -#int#ins # IP in2ento&1 #t e#/ o0 !5 :o&7 st#tions, #n$ t/e #2e&#e sie o0 t/e in2ento&1 is << units (e& st#tion. T/e (/1si# 0o: 0o: o0 units into #n$ out o0 e#/ IP IP o#tion is 0i&stin, 0i&st out. T/e tot# nu-+e& o0 inst#nes in :/i/ :/i/ so-e :o&7 st#tion oes out o0 its ont&o i-its is e(ete$ to to +e !<< $u&in t/e o-in 1e#&. In %< o0 t/ese inst#nes, t/e out out o0ont&o on$ition is e(ete$ to +e $iso2e&e$ i--e$i#te1 +1 t/e o(e&#to& #t t/#t st#tion? in t/e ot/e& < o0 t/ese inst#nes, # $e0et :i ente& !< o0 t/e units (&o$ue$. T/ese $e0eti2e units units ente& IP +et:een st#tions, :/e&e t/e1 :i +e $iso2e&e$ +1 t/e t/e net st#tion>s o(e&#to&. o(e&#to&. E2e&1 outo0ont&o on$ition on$ition is o&&ete$ #s soon #s it is $iso2e&e$. T/e #2e&#e ost ost o0 # unit in in IP is =4<, #n$ #n$ t/e #2e&#e oss oss 0&o- #n outo0ont&o on$ition on$ition is =< (e& $e0eti2e $e0eti2e unit (&o$ue$. T/e #nnu# ost ost o0 #&&1in IP is "" o0 t/e ost o0 t/e in2ento&1. M#n#e-ent (#ns to &e$ue t/e nu-+e& nu-+e& o0 units /e$ #t #t e2e&1 :o&7 st#tion +1 5<. T/e &#te o0 0in# out(ut :i +e un/#ne$, #n$ no ot/e& /#nes :i +e -#$e in t/e s1ste-.
Re6ui&e$3
A!
C#u C#u#te #te t/e t/e e(e e(ete te$ $ #&&1 #&&1in in ost ost s#2in s#2ins s 0&o0&o- t/e /#ne /#ne (#nne (#nne$ $ +1 t/e
-#n#e-ent. A
C#u C#u#te #te t/e t/e e(e e(ete$ te$ s#2i s#2ins ns in in ost ost o0 $e0e $e0ets ts i0 t/e t/e /#n /#nes es #&e #&e i-(e i-(e-en -ente$ te$..
SOLUTION A!
C#&&1in o ost s#2ins
"" &e$ution in in #2 #2e&#e o ost o0 o0 I IP
!4%
C/#(te& !<
"" 5< (#st #2e&#e ost o0 IP ."" .5 A!5 << =4< =!9,%<< A A
S#2i S#2in nss in in os ostt o0 o0 $e0 $e0e ets ts =< =< &e$ &e$u uti tion on in t/e t/e nunu-+e +e&& o0 o0 $e0 $e0e eti ti2e 2e unit unitss
=< A5< << !< A.< !<< =< !< < =4,<<<
PROBLEM . In2ento&1 Sie, Feoit1, Feoit1, #n$ Le#$ Ti-e. P&o+t1(e Ino&(o&#te$ Ino&(o&#te$ &e6ui&es #n #2e&#e #2e&#e e#$ ti-e o0 45 $#1s $#1s on usto-e& o&$e&s t/#t &e6ui&e &e6ui&e (#&ts not 7e(t 7e(t in sto7. /en su/ # usto-e& o&$e& is &eei2e$, t/e (#&ts o&$e& is (#e$ :it/ # 2en$o& i--e$i#te1 +1 tee(/one, #n$ t/e (#&ts #&e &eei2e$ in #n #2e&#e o0 ! $#1s. T/e (#&ts #&e ins(ete$ #n$ (ut into (&o$ution (&o$ution #n #2e&#e o0 t/&ee $#1s #0te& #0te& &eei(t. T/e #2e&#e ti-e ti-e s(ent in (&o$ution is !; $#1s. $#1s. '0te& (&o$ution is o-(ete$, t/e o&$e& oes t/&ou/ 0in# ins(etion in t:o $#1s #n$ #&&i2es #t t/e usto-e&>s site #0te& #n #$$ition# t/&ee $#1s, on #2e&#e. M#n#e-ent (#ns to e#2e t/e &#te o0 0in# out(ut un/#ne$, in$ue 2en$o&s to &e$ue t/ei& tot# e#$ ti-e +1 onet/i&$, #n$ &e$ue t/e #2e&#e sie o0 IP to one0ou&t/ o0 its (&esent e2e.
JustinTi-e #n$ B#70us/in
!49
Re6ui&e$3 'ssu-in -#n#e-ent>s -#n#e-ent>s (#ns #&e #&e i-(e-ente$ suess0u1, #u#te t/e
#2e&#e e#$ ti-e on usto-e& o&$e&s t/#t &e6ui&e (#&ts not 7e(t in sto7.
SOLUTION T/e #2e&#e e#$ ti-e :i +e ; $#1s, #u#te$ #s 0oo:s3 Re$ution o0 2en$o& e#$ ti-e !" ! $#1s ) $#1s Re$u Re$ut tio ion n o0 titi-e e in IP IP
"4 "4 o0 (&e (&ese sent nt titi-e e in IP IP
"4 !; $#1s ! $#1s Ne: e e#$ titi-e
(&esent e e#$ titi-e &e$utions
45 $#1s A) $#1s ! $#1s ; $#1s
PROBLEM ". Co-(#&ison o0 P&oess P&oess Costin #n$ #n$ B#70us/in? Unit Cost C#u#tions. B8 Co-(#n1 /#$ "5 units in (&oess, 5< on2e&te$, #t t/e +einnin o0 # &eent, t1(i# -ont/? t/e on2e&sion ost o-(onent o0 t/is +einnin +einnin in2ento&1 :#s =55. T/e&e :e&e 4< units in (&oess, 5< on2e&te$, on2e&te$, #t t/e en$ o0 t/e -ont/. Du&in t/e -ont/, -ont/, 5,<<< units :e&e o-(ete$ #n$ t&#ns0e&&e$ to 0inis/e$ oo$s, #n$ on2e&sion osts o0 =5<,<<< :e&e inu&&e$.
Re6ui&e$3
!5<
A!
C/#(te& !<
C#&&1i C#&&1in n #u #u#t #tion ionss to t/&ee t/&ee $ei $ei-# -# (# (#es, es, 0in$ 0in$ t/e t/e on2 on2e&s e&sion ion ost ost (e& (e& unit unit 0o& 0o&
t/e -ont/3 A# A#
+1 t/e t/e #2e #2e&# &#e e os ostt -et -et/o /o$ $ #s use$ use$ in in (&o (&oe ess ss os osti tin n..
A+
+1 $i2i$ $i2i$in in t/e t/e tot# tot# on2 on2e&s e&sion ion ost ost inu&& inu&&e$ e$ $u&i $u&in n t/e t/e -ont/ -ont/ +1 +1 t/e t/e nu-+e& nu-+e& o0
units o-(ete$ $u&in t/e -ont/ A$o not #u#te e6ui2#ent units. A
+1 $i2i$ $i2i$in in t/e t/e tot# tot# on2 on2e&s e&sion ion ost ost inu&& inu&&e$ e$ $u&i $u&in n t/e t/e -ont/ -ont/ +1 +1 t/e t/e nu-+e& nu-+e& o0
units st#&te$ $u&in t/e -ont/. A
Usin Usin t/e t/e t/&ee t/&ee unit unit osts osts 0&o0&o- Re6u Re6ui&e i&e-en -entt A!, # #u# u#te te t/&ee t/&ee #-ou #-ounts nts 0o& 0o& t/e t/e
tot# on2e&sion ost o0 t/e en$in in2ento&1 o0 :o&7 in (&oess to t/e ne#&est $o#&. A"
In i/t i/t o0 t/e &esu &esuts ts o0 o0 Re6ui& Re6ui&e-e e-ent nt A, A, :/i/ :/i/ o0 o0 t/e t/&e t/&ee e -et/o -et/o$s $s o0 # #u# u#tin tin
unit on2e&sion ost :ou$ 1ou &eo--en$ 0o& t/e (u&(ose o0 in2ento&1 ostin, !A#, !A+, o& !A@ /1@
JustinTi-e #n$ B#70us/in
!5!
SOLUTION (&)
(a)
#ui%alent pr"ducti "n = 5,000 + (.50 ! 40) = 5,020 units $250,525 5,020
$250,000
()
(c)
5,000
= $50 per unit
Units started = 5,000 + 40 - 35 = 5,005 $250,000 5,005
A
= $49.905 per unit
= $49.950 per unit
4< .5< 49.9<5 99%
4< .5< 5<.<<< !,<<< 4< .5< 49.95< 999 A"
Consi$ Consi$e&i e&in n t/#t t/#t t/e t/e &esut &esutss o0 Re6ui Re6ui&e&e-ent ent A A :e&e :e&e :it/i :it/in n t:o $o $o#&s #&s o0 o0 e#/ e#/
ot/e&, t/en -et/o$ !A+ :ou$ +e &eo--en$e$ +e#use o0 its e#se #n$ si-(iit1.
PROBLEM 4. B#70us/ Costin it/ it/ # 8inis/e$ Goo$s 'ount. T/e L#n8#t M#nu0#tu&in M#nu0#tu&in Co-(#n1 uses # R#: #n$ In P&oess ARIP in2ento&1 #ount #n$ e(enses # on2e&sion osts to t/e ost o0 oo$s oo$s so$ #ount. 't t/e en$ o0 o0 e#/ -ont/, # # in2ento&ies #&e ounte$, ounte$, t/ei& on2e&sion ost o-(onents #&e esti-#te$, #n$ in2ento&1 #ount +##nes #&e #$*uste$ #o&$in1. #o&$in1. R#: -#te&i# ost is +#70us/e$ 0&o- RIP RIP to 8inis/e$ Goo$s. Goo$s. T/e 0oo:in in0o&-#tion is 0o& t/e -ont/ o0 'uust3 Beinnin +##ne 0o& RIP #ount, inu$in =4,%<< o0 on2e&sion ost
=
!5
C/#(te& !<
4",5<< R#: -#te&i#s &eei2e$ on &e$it
;%<,<<<
En$in RIP in2ento&1 (e& (/1si# ount, inu$in =5,"<< on2e&sion ost esti-#te
4),<<
Re6ui&e$3 P&e(#&e # *ou&n# ent&ies in2o2in t/e RIP #ount. #ount.
JustinTi-e #n$ B#70us/in
!5"
SOLUTION Jou&n# ent&ies in2o2in t/e RIP #ount #&e3 R#: #n$ In P&oess
;%<,<<<
'ounts P#1#+e
;%<,<<<
T/is is # su--#&1 su--#&1 ent&1 0o& # &eei(ts o0 o0 &#: -#te&i#s -#te&i#s $u&in t/e (e&io$. 's $i&et -#te&i#s #&e use$, no ent&1 is nee$e$, +e#use t/e1 &e-#in # (#&t o0 RIP. 8inis/e$ Goo$s
;);,%<<
R#: #n$ In P&oess
;);,%<<
T/is ent&1 +#70us/es +#70us/es -#te&i# ost 0&o- RIP to 8inis/e$ Goo$s. T/is is # (ost$e$ution. (ost$e$ution. T/e #u#tion is3 M#te&i# in 'uust ! RIP +##ne
=
M#te&i# &eei2e$ $u&in 'uust =
"%,)<< ;%<,<<<
)!%,)<<
M#te&i# in 'uust "! RIP, (e& (/1si# ount '-ount to +e +#70us/e$
=
R#: #n$ In P&oess
5<<
Cost o0 Goo$s So$
4!,9<<
;);,%<<
5<<
Con2e&sion ost in RIP is #$*uste$ 0&o- t/e =4,%<< o0 'uust ! to t/e =5,"<< esti-#te #t 'uust "!. T/e o00settin ent&1 is -#$e to Cost o0 Goo$s So$, :/e&e # on2e&sion on2e&sion osts :e&e /#&e$ $u&in 'uust.
PROBLEM
!54
C/#(te& !<
5. B#70us/ Costin it/ it/ No 8inis/e$ Goo$s Goo$s 'ount. T/e 'TM M#nu0#tu&in M#nu0#tu&in Co-(#n1 (&o$ues on1 0o& usto-e& o&$e&, #n$ -ost :o&7 is s/i((e$ :it/in t:ent10ou& /ou&s o0 t/e &eei(t o0 #n o&$e&. 'TM uses # R#: #n$ In P&oess ARIP ARIP in2ento&1 #ount #ount #n$ e(enses # on2e&sion on2e&sion osts to t/e ost o0 oo$s so$ so$ #ount. 't t/e en$ o0 e#/ -ont/, in2ento&1 is ounte$, its on2e&sion ost o-(onent is esti-#te$, #n$ t/e RIP #ount +##ne is #$*uste$ #o&$in1. R#: -#te&i# ost ost is +#70us/e$ 0&o- RIP to Cost o0 Goo$s Goo$s So$. T/e 0oo:in in0o&-#tion is 0o& t/e -ont/ -ont/ o0 June3 Bein einni nin n +## +##n ne e o0 RIP RIP #ou ount nt,, in inu$ u$in in =9<< =9<< o0 on2e on2e&s &sio ion n ost ost R#: -#te&i#s &eei2e$ on &e$it
!%),<<<
En$in RIP in2ento&1 (e& (/1si# ount, inu$in =!,!<< on2e&sion ost esti-#te
),9<<
Re6ui&e$3 P&e(#&e # *ou&n# ent&ies in2o2in t/e RIP #ount. #ount.
=
%,5< ,5<<
JustinTi-e #n$ B#70us/in
!55
SOLUTION Jou&n# ent&ies in2o2in t/e RIP #ount #&e3 R#: #n$ In P&oess
!%),<<<
'ounts P#1#+e
!%),<<<
T/is is # su--#&1 su--#&1 ent&1 0o& # &eei(ts o0 o0 &#: -#te&i#s -#te&i#s $u&in t/e (e&io$. 's $i&et -#te&i#s #&e use$, no ent&1 is nee$e$ +e#use t/e1 &e-#in # (#&t o0 RIP. Cost o0 Goo$s So$
!%),%<<
R#: #n$ In P&oess
!%),%<<
T/is ent&1 +#70us/es +#70us/es -#te&i# ost 0&o- RIP to Cost o0 Goo$s So$. T/is is # (ost$e$ution. T/e #u#tion is3 M#te&i# in June ! RIP +##ne
=
M#te&i# &eei2e$ $u&in June =
),;<< !%),<<<
!94,;<<
M#te&i# in June "< RIP, (e& (/1si# ount '-ount to +e +#70us/e$
=
R#: #n$ In P&oess
<<
Cost o0 Goo$s So$
;,%<<
!%),%<<
<<
Con2e&sion ost in RIP is #$*uste$ 0&o- t/e =9<< o0 June ! to t/e =!,!<< esti-#te #t June "<. T/e o00settin ent&1 is -#$e to Cost Cost o0 Goo$s So$, :/e&e # on2e&sion on2e&sion osts :e&e /#&e$ $u&in June.
PROBLEM
!5;
C/#(te& !<
;. B#70us/ Costin? Ent&ies in RIP #n$ 8inis/e$ Goo$s. T/e Ci0ton M#nu0#tu&in M#nu0#tu&in Co-(#n1 /#s # 1e ti-e o0 !.5 $#1s, uses # R#: #n$ In P&oess ARIP #ount, #n$ /#&es # on2e&sion on2e&sion osts to Cost Cost o0 Goo$s So$. 't t/e en$ o0 o0 e#/ -ont/, # in2ento&ies #&e ounte$, t/ei& on2e&sion ost o-(onents #&e esti-#te$, #n$ in2ento&1 #ount +##nes #&e #$*uste$. R#: -#te&i# ost ost is +#70us/e$ 0&o0&o- RIP to 8inis/e$ Goo$s. T/e 0oo:in 0oo:in in0o&-#tion is 0o& M#13 Bein einni nin n +## +##n ne e o0 RIP RIP #ou ount nt,, in inu$ u$in in =;<< =;<< o0 on2e on2e&s &sio ion n ost ost
=
5,5< ,5<<
Beinnin +##ne o0 0inis/e$ oo$s #ount, inu$in =,<<< o0 on2e&sion ost
;,<<<
R#: -#te&i#s &eei2e$ on &e$it
!)",<<<
En$in RIP in2ento&1 (e& (/1si# ount, inu$in =%5< on2e&sion ost esti-#te
;,<<
En$in 0inis/e$ oo$s in2ento&1 (e& (/1si# ount, inu$in =!,55< on2e&sion ost esti-#te
4 , 9 <<
Re6ui&e$3 P&e(#&e # t/e *ou&n# ent&ies t/#t in2o2e in2o2e t/e RIP #ount #ount #n$o& t/e t/e 0inis/e$
oo$s #ount.
JustinTi-e #n$ B#70us/in
!5)
SOLUTION R#: #n$ In P&oess
!)",<<<
'ounts P#1#+e 8inis/e$ Goo$s
!)",<<< !),55<
R#: #n$ In P&oess
!),55<
To +#70us/ +#70us/ -#te&i# -#te&i# ost 0&o- RIP to 8inis/e$ Goo$s. T/is is is # (ost$e$ution. T/e #u#tion is3 M#te&i# in M#1 ! RIP +##ne
=
M#te&i# &eei2e$ $u&in M#1 =
4,9<< !)",<<<
!)),9<<
M#te&i# in M#1 "! RIP, (e& (/1si# ount '-ount to +e +#70us/e$
=
Cost o0 Goo$s So$
!)",<<
8inis/e$ Goo$s
5,"5<
!),55<
!)",<<
To +#70us/ -#te&i# -#te&i# ost 0&o- 8inis/e$ Goo$s to Cost o0 Goo$s So$. T/is is # (ost$e$ution. T/e #u#tion is3 M#te&i# in M#1 ! 0inis/e$ oo$s
=
M#te&i# +#70us/e$ 0&o- RIP =
4,<<< !),55<
!);,55<
M#te&i# in M#1 "! 0inis/e$ oo$s, (e& (/1si# ount '-ount to +e +#70us/e$
=
Cost o0 Goo$s So$
<<
R#: #n$ In P&oess
5<
!)",<<
","5<
!5%
8inis/e$ Goo$s
C/#(te& !<
45<
Con2e&sion ost in RIP is #$*uste$ 0&o- =;<< o0 M#1 ! to t/e =%5< esti-#te #t M#1 "!. Con2e&sion ost in 8inis/e$ Goo$s is #$*uste$ 0&o- t/e =,<<< #t M#1 ! to t/e =!,55< esti-#te #t M#1 "!.
JustinTi-e #n$ B#70us/in
'
". ".
!59
Si-( Si-(sson Co. Co. #$$ #$$ss -#te -#te&i &i# #s #t t/e t/e +e +ein inni nin n o0 o0 t/e (&o (&oes esss in De(#& e(#&tt-e ent
M. T/e 0oo:in in0o&-#tion (e&t#ins to De(#&t-ent M>s :o&7 in (&oess $u&in '(&i3 Units o&7 in (&oess on '(&i ! A;< o-(ete #s to on2e&sion ost St#&te$ in '(&i
5,<<<
Co-(ete$ in '(&i
<,<<<
",<<<
o&7 in (&oess on '(&i "< A)5 o-(ete #s to on2e&sion ost
%,<<<
Un$e& t/e #2e&#e ostin -et/o$, t/e e6ui2#ent units 0o& on2e&sion ost #&e3 '.
;,<<<
B.
5,<<<
C.
4,<<<
D.
!,%<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 <,<<< .)5A%,<<< ;,<<< D
4. 4.
Du&in &in M#& #&/, Qui ui Co Co-(#n -(#n1> 1>ss De( De(#& #&tt-e ent e6u e6ui2 i2# #e ent uni unit (&o (&o$u $ut os osts ts,,
o-(ute$ un$e& t/e #2e&#e ost -et/o$, :e&e #s 0oo:s3 M#te&i#s
=!
Con2e&sion
"
T&#ns0e&&e$in
5
M#te&i#s #&e int&o$ue$ #t t/e en$ o0 t/e (&oess in De(#&t-ent . T/e&e :e&e 4,<<< units A4< o-(ete #s to on2e&sion osts in :o&7 in (&oess #t M#&/ "!. T/e tot# osts #ssine$ to t/e M#&/ "! :o&7 in (&oess in2ento&1 s/ou$ +e3
!;<
C/#(te& !<
'.
=";,<<<
B.
=%,%<<
C.
=),<<
D.
=4,%<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =5A4,<<< ="A4,<<< ="A4,<<< .4 =4,%<<
T/e 0oo:in 6uestions #&e +#se$ on t/e -#te&i# in t/e '((en$iG to t/e /#(te&.
B
5. 5.
I0 # oo-(#n (#n1 &e &e(o&t (o&tss t:o t:o $i00 $i00e& e&en entt uni unitt os osts ts 0o& 0o& oo oo$ $s t&# t&#n ns0e s0e&&e$ &&e$ to t/e t/e
net $e(#&t-ent, it is &e#son#+e to #ssu-e t/#t3 '.
t/e t/e $e( $e(#& #&tt-en entt # #ou ount ntss 0o& 0o& ost ost unit unitss #t #t t/e t/e en$ en$ o0 o0 t/e t/e (&o (&oes esss
B.
# 0i0o ostin -et/o$ is use$
C.
os ost uni unitt o osts sts #&e #&e o-( o-(u ute$ te$ se se(#&# (#&#te te1 1
D.
#n #2 #2e&# &#e ostin -et/o$ is us use$
E.
e&&o& &&o&ss -u -ust /#2e #2e o ou& u&&e &e$ $ in in &e &eo o&$in &$in os osts ts
JustinTi-e #n$ B#70us/in
C
;. ;.
!;!
In o&$ o&$e& e& to o-( o-(ut ute e e6u e6uii2#e 2#ent nt units nits o0 (&o (&o$ $uti ution on usin sin t/e t/e 0i0o 0i0o -et -et/o$ /o$ o0 o0
(&oess ostin, :o&7 0o& t/e (e&io$ -ust +e +&o7en $o:n to units3 '.
st#&t t#&te e$ # #n$ n$ o-( o-(e ete te$ $ $ $u& u&in in t/e t/e (e&i (e&io$ o$
B.
o-( o-(e ete te$ $ $u&i $u&in n t/e t/e (e& (e&io io$ $ #n$ #n$ uni units ts in in en$i en$in n in2 in2en ento to&1 &1
C.
o-( o-(e ete te$ $ 0&o0&o- +ei +einn nnin in in2e in2ent nto& o&1, 1, st# st#&t &te$ e$ #n$ #n$ oo-( (et ete$ e$ $u& $u&in in t/e t/e
-ont/, #n$ units in en$in in2ento&1
'
). ).
D.
st#& st#&te te$ $ $u&i $u&in n t/e t/e (e& (e&io io$ $ #n$ #n$ uni units ts t&# t&#ns ns0e 0e&& &&e$ e$ out out $u& $u&in in t/e t/e (e& (e&io io$ $
E.
(&o (&oes esse se$ $ $u& $u&in in t/e t/e (e&i (e&io$ o$ #n$ #n$ uni units ts o-( o-(e ete te$ $ $u& $u&in in t/e t/e (e&i (e&io$ o$
T/e T/ e 0i& 0i&sstin tin,, 0i0i&st &stou outt -et -et/o /o$ $ o0 o0 (&o (&oe ess ss ost ostiin :i :i (&o$u &o$ue e t/e t/e s# s#-e ost ost
o0 oo$s -#nu0#tu&e$ #-ount #s t/e #2e&#e ost -et/o$ :/en3
B
%. %.
'.
t/e&e is is no no +e +einnin in in2ento&1
B.
t/e&e is no en$in in2ento&1
C.
+ei +einn nnin in #n$ #n$ en$i en$in n in2 in2en ento to&i &ies es #&e #&e e#/ e#/ 5< 5< oo-( (et ete e
D.
+ei +einn nnin in in2e in2ent nto& o&ie iess #&e #&e !<< !<< oo-( (et ete e #s to to -#te -#te&i &i# #ss
E.
oo$s (&o$ue$ #&e /o-oeneous
T/e T/ e 0i0 0i0o o -e -et/o t/o$ o o00 (&o (&oe ess ss osti ostin n $i00e i00e&s &s 0&o 0&o- t/e t/e # #2e 2e&# &#e e ost ost -et/ -et/o$ o$ o0
(&oess ostin in t/#t 0i0o3 '.
#o #o# #te tess os osts ts +#se +#se$ $ on on :/o :/oe e unit units, s, +ut +ut t/e t/e #2e #2e&# &#e e ost ost -et/ -et/o$ o$
uses e6ui2#ent units B.
ons onsi$ i$e& e&ss t/e t/e st# st#e e o0 o0 oo-( (et etio ion n o0 o0 +e +ein inni nin n :o& :o&77 in in (&o (&oe ess ss in
o-(utin e6ui2#ent units o0 (&o$ution, +ut t/e #2e&#e ost -et/o$ $oes not C.
$oes $oes not not on onsi si$e $e&& t/e t/e st# st#e e o0 o0 oo-( (et etio ion n o0 o0 +e +ein inni nin n :o&7 :o&7 in
(&oess in o-(utin e6ui2#ent units o0 (&o$ution, +ut t/e #2e&#e ost -et/o$ $oes D.
is #(( #((ii# #+ +e e on1 on1 to to t/os t/ose e o-( o-(#n #nie iess usin usin t/e t/e 0i0o 0i0o in2 in2en ento& to&11 (&i (&ii in n
-et/o$, +ut t/e #2e&#e ost -et/o$ -#1 +e use$ :it/ #n1 in2ento&1 (&iin -et/o$ E. '
9.
none o0 t/e #+o2e
Conno& Co Co-(#n1 o o-(ute$ t/ t/e 00o: o0 o0 (/ (/1si# uni units ts o-(ete$ te$ 0o 0o&
De(#&t-ent M 0o& t/e -ont/ o0 M#&/ #s 0oo:s3
!;
C/#(te& !<
Units o-(ete$3 8&o- :o&7 in (&oess on M#&/ !
!5,<<<
8&o- M#&/ (&o$ution Tot#
45,<<<
;<,<<<
M#te&i#s #&e #$$e$ #t t/e +einnin o0 t/e (&oess. T/e !,<<< units o0 :o&7 in (&oess #t M#&/ "! :e&e %< o-(ete #s to on2e&sion osts. T/e :o&7 in (&oess #t M#&/ ! :#s ;< o-(ete #s to on2e&sion osts. Usin t/e 0i0o -et/o$, t/e e6ui2#ent units 0o& M#&/ on2e&sion osts :e&e3 '.
;<,;<<
B.
55,<<
C.
5),<<<
D.
54,;<<
E.
;",;<<
SUPPORTING C'LCUL'TION3 A!5,<<< .4 45,<<< A!,<<< .% ;<,;<<
JustinTi-e #n$ B#70us/in
!;"
!;4
'
C/#(te& !<
!).
Seete$ ost $# $#t# Ai Ain t/ t/ous#n$s o one&nin t/ t/e (# (#st 0i0is# 1e 1e#&>s
o(e&#tions o0 t/e Moso: M#nu0#tu&in Co-(#n1 #&e (&esente$ +eo:.
In2ento&ies
Beinnin
En$in
M#te&i#s
=)5
= %5
o&7 in (&oess
%<
"<
8inis/e$ oo$s
9<
!!<
M#te&i#s use$, ="; Tot# -#nu0#tu&in osts /#&e$ to (&o$ution $u&in t/e 1e#& Ainu$in $i&et -#te&i#s, $i&et #+o&, #n$ 0#to&1 o2e&/e#$ #((ie$ #t t/e &#te o0 ;< o0 $i&et #+o& ost, =;%; Cost o0 oo$s #2#i#+e 0o& s#e, =%; Sein #n$ ene&# e(enses, =5 T/e ost o0 oo$s so$ $u&in t/e 1e#& :#s3 '.
=)!;
B.
=;9!
C.
=%
D.
=)";
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =9< =)"; =!!< =)!; '
!%. !%.
J. D. D. Doo Doones nes+u&1 +u&1 Co-(# -(#n1 -#nu -#nu0# 0#tu&e tu&ess too tooss to to us usto-e to-e&& s(e s(ei0 i0ii#ti #tion ons. s.
T/e 0oo:in $#t# (e&t#in to Jo+ !5
=
4 , <<
Di&et #+o& /ou&s :o&7e$ Di&et #+o& &#te (e& /ou&
"<< =
%.<<
JustinTi-e #n$ B#70us/in
M#/ine /ou&s use$
!;5
<<
'((ie$ 0#to&1 o2e&/e#$ &#te (e& -#/ine /ou&
=
!5.<<
/#t is t/e tot# -#nu0#tu&in ost &eo&$e$ on Jo+ !5
=9,;<<
B.
=!<,"<<
C.
=!!,!<<
D.
=5,4<<
E.
=%,%<<
SUPPORTING C'LCUL'TION3 =4,<< A"<< =% A<< =!5 =9,;<< C
!9.
In se se&2ie +u +usinesses usin *o *o+ o& o&$e& o ostin, t/ t/e -o -ost o o--on1 us use$
+#se 0o& #((1in o2e&/e#$ to *o+s is3 '.
-#/ine /ou&s
B.
$i&et -# -#te&i#s o onsu-e$
C.
$i&et #+o& ost
D.
-e#s, te, #n #n$ en ente&t#inin-ent
E.
none o0 t/e #+o2e
!;;
'
C/#(te& !<
<. <.
In se& se&2i 2ie e +us +usines inessses usin sin *o+ *o+ o&$e& &$e& ost ostin, in, t/e t/e /ou /ou& &11 &#t &#te e us use$ to /# /#&e &e
osts to # *o+ usu#1 inu$es3
'
B
'
C
!.
.
". ".
4. 4.
'.
+ot/ #+o& #n$ o2e&/e#$ ost
B.
#+o& ost on1
C.
o2e&/e#$ ost on on1
D.
#+ #+o&, o&, o2e o2e&/ &/e# e#$, $, #n$ -is -ise e# #ne neo ous osts osts
E.
none o0 t/e #+o2e
o&7 in P& P&oess is is $e+ite$ #n$ M#te&i#s is &e$ite$ 0o&3 '.
t/e t/e iss issu# u#n ne e o0 o0 $i& $i&e ett -#t -#te& e&i# i#s s into into (&o$ (&o$u uti tion on
B.
t/e t/e iss issu# u#n ne e o0 o0 in$ in$i& i&e ett -#t -#te e&i# &i#ss int into o (&o (&o$u $ut tio ion n
C.
t/e t/e &et &etu& u&n n o0 o0 -# -#te&i te&i# #ss to to t/e t/e sto&e to&e&o &ooo-
D.
t/e t/e #(( #((i# i#ti tion on o0 -#te& #te&ii#s #s o2 o2e&/e e&/e#$ #$
E.
none o0 t/e #+o2e
8#to&1 O2 O2e&/e &/e#$ Co Cont&o is is $e $e+ite$ #n #n$ P# P#1&o o is is & &e$ite$ 0o 0o&3 '.
t/e &eo&$in o0 (#1&o
B.
t/e t/e $ $iist&i st&i+u +uti tio on o o00 in in$i&e $i&et #+ #+o o& os osts ts
C.
t/e t/e $ist $ist&i &i+u +uti tio on o0 o0 $i&e $i&et t #+o& #+o& ost ostss
D.
t/e t/e $ist $ist&i &i+u +uti tio on o0 :it/ :it//o /o$ $iin t# t#es
E.
none o0 t/e #+o2e
'(( ((ie$ ie$ 8# 8#to to&1 &1 O2e& O2e&/ /e#$ e#$ is $e+i $e+ite te$ $ #n$ 8# 8#to&1 to&1 O2e&/ 2e&/e# e#$ $ is &e &e$i $ite te$ $ to3 to3 '.
os ose e t/e t/e est estii-#t #te$ e$ o2e& o2e&/e /e#$ #$ # #ou ount nt to to #tu #tu# # o2e o2e&/ &/e# e#$ $
B.
&eo &eo&$ &$ t/e t/e #t #tu# u# 0# 0#to to&1 &1 o2e& o2e&/e /e#$ #$ 0o& 0o& t/e t/e (e&i (e&io$ o$
C.
/#& /#&e e esti esti-# -#te te$ $ o2e o2e&/ &/e# e#$ $ to to # # *o+s *o+s :o&7 :o&7e$ e$ on $u&i $u&in n t/e t/e (e& (e&io io$ $
D.
to &eo &eo&$ &$ o2e& o2e&#( #(( (ie ie$ $ o2e o2e&/ &/e# e#$ $ 0o& 0o& t/e t/e (e&i (e&io$ o$
E.
none o0 t/e #+o2e
T/e T/ e +es +estt o2e o2e&/ &/e# e#$ $ # #o o#t #tio ion n +#s +#se e to to use use in # #+o #+o& &in inttensi ensi22e -#n -#nu u0#t 0#tu u&in &in
en2i&on-ent (&o+#+1 :ou$ +e3
JustinTi-e #n$ B#70us/in
D
5.
'.
-#te&i#s ost
B.
-#/ine /ou&s
C.
$i&et #+o& /ou&s
D.
units o0 (&o$ution
E.
none o0 t/e #+o2e
8inis/e$ Go Goo$s is is $e $e+it +ite$ #n #n$ Co Cost o0 Go Goo$s So So$ $ is is &e &e$ $ite$ 0o 0o&3 '.
t&# t&#ns0e ns0e&& o0 o0 o o-( -(ete$ ete$ oo$ oo$ss to to t/e t/e ust ustoo-e e&
B.
s#e o0 # usto-e& o&$e&
C.
&etu&n o0 o0 -# -#te&i#s to to t/ t/e su su((ie&
D.
&etu&n o0 o0 o oo$s +1 +1 t/ t/e u usto-e&
E.
none o0 t/e #+o2e
!;)
!;%
C/#(te& !<
PROBLEMS
PROBLEM !. Jo+ O&$e& Cost S/e$ue. S/e$ue. in7e oo$�te&s (&o$ues s(ei#o&$e& s(ei#o&$e& :oo$ (&o$uts. (&o$uts. T/e o-(#n1 uses uses *o+ o&$e& ostin 0o& (&iin #n$ #n$ ost #u-u#tion #u-u#tion (u&(oses. T/e 0oo:in osts :e&e inu&&e$ on t:o &eent *o+s3 Cost Ite-
Jo+ Pine<
Jo+ Bi&/!<
Di&et -#te&i#s3 Issue$
=;,5<<
Retu&ne$
5 <<
=%,<<< <
In$i&et -#te&i#s use$
5 <<
Di&et #+o&
=!5,<<<
=9,<<<
Di&et #+o& &#te
4<<
=9 (e& /ou& =!< (e& /ou&
O2e&/e#$ #((i#tion &#te
=!< (e& $i&et #+o& /ou&
=!5 (e& $i&et #+o& /ou&
T/e o-(#n1 #$$s # 5< -#&7u( on ost in $ete&-inin t/e #-ount to /#&e 0o& e#/ *o+. Re6ui&e$3 P&e(#&e # s/e$ue s/e$ue s/o:in t/e ost ost #n$ t/e #-ount #-ount to +e /#&e$ /#&e$ 0o& e#/
*o+.
SOLUTION Jo+ Pine < Jo+ Bi&/ !< Di&et -#te&i#s
=
Di&et #+o&
9,<<<
;,<<< =
%,<<<
!5,<<<
JustinTi-e #n$ B#70us/in
!;9
8#to&1 o2e&/e#$ #((ie$ Tot#
=
5,<<<
!<,<<< =
45,5<<
'o:#ne 0o& (&o0it #n$ ot/e& osts '-ount to +e /#&e$
=
,5<< !,5<<
"),5<<
=
,)5<
;%,5<
PROBLEM . Jo+ O&$e& Cost S/eet? O2e& o& Un$e&#((ie$ O2e&/e#$.
Du&in June, t/e 0oo:in
t&#ns#tions too7 (#e #t t/e C#ss#n$&#n Co&(. June
"
Pu&/#se$ -# -#te&i#s, =" ="<,<<<.
5
Re6u Re6uis isit itio ione ne$ $ -#te -#te&i &i# #ss 0&o 0&o- in2 in2en ento to&1 &1,, =<, =<,<< <<< < A)5 A)5 o0 t/es t/ese e :e& :e&e e $i& $i&e et? t?
5 :e&e in$i&et. in$i&et. Di&et -#te&i#s -#te&i#s o0 =",<<< #n$ in$i&et -#te&i#s -#te&i#s o0 =!,<<< :e&e 0o& Jo+ <<!. T/e &e-#in$e& &e-#in$e& :e&e :e&e 0o& 0o& Jo+ <<. )
8o&& Jo+ 8o Jo+ << <<, , &et &etu& u&ne ne$ $ =!5 =!5< < o0 $i&e $i&et t -#t -#te& e&i# i#s s #n$ #n$ =< =<< < o0 o0 in$i in$i&e &et t
-#te&i#s. %
Reo Reo&$ &$e$ e$ i#+ i#+iiit ities ies 0o& 0o& (#1& (#1&o o3 3 $i&e $i&et t #+o #+o&, &, =!5,< =!5,<<< << #n$ #n$ in$i in$i&e &et t #+o #+o&, &,
=5,<<<. O0 t/e $i&et #+o& ost, ;< :#s 0o& Jo+ Jo+ <<!? t/e &e-#in$e& :#s 0o& Jo+ <<. !<
Inu Inu&& &&e$ e$ ot/ ot/e& e& 0# 0#to to&1 &1 o2e o2e&/ &/e# e#$ $ ost osts, s, =<, =<,<< <<< < A# A# #(( #((i i#+ #+e e to Jo+ Jo+ss <<!
#n$ <<. !4
'(( '((ie ie$ $ o2e& o2e&/e /e#$ #$ #t #t t/e t/e &#te &#te o0 o0 << << o0 o0 $i&e $i&et t #+ #+o& o& os ostt to Jo+s Jo+s <<! <<! #n$ #n$
<<, :/i/ :e&e o-(ete$ #n$ t&#ns0e&&e$ to 0inis/e$ oo$s #ount to$#1.
!)<
C/#(te& !<
Re6ui&e$3 'ssu-in t/#t Jo+s <<! #n$ << :e&e t/e on1 *o+s $u&in t/e (e&io$ #n$
t/#t # o2e&/e#$ A#s &eo&$e$ #+o2e is t/e tot# #((i#+e o2e&/e#$ 0o& t/ese (&o*ets3 A! A!
P&e( P&e(#& #&e e # *o+ *o+ o&$ o&$e& e& ost ost s/ee s/eett 0o& 0o& e#/ e#/ *o+. *o+.
A
Dete&Dete&-ine ine t/e t/e $i00e $i00e&en &ene e +et:e +et:een en #((i #((ie$ e$ #n$ #n$ #tu# #tu# o2e&/e o2e&/e#$ #$ 0o& 0o& t/e -ont/. -ont/.
SOLUTION A! Jo+ <<!
Jo+ <<
M#te&i#s
=
",<<< =
L#+o&
9,<<<
;,<<<
O2e&/e#$ #((ie$ Tot# ost A A
!!,%5<
!%,<<< =
"<,<<<
=
!,<<< 9,%5<
'n# 'n#1s 1sis is o0 8#to #to&1 &1 O2e& O2e&/e /e#$ #$
Inu&&e$3 In$i&et -#te&i#s
=
In$i&et #+o&
5,<<<
4 , %<<
Ot/e& o2e&/e#$ inu&&e$
<,<<<
=
9,%<<
'((ie$3 Jo+ <<!
=
Jo+ << '-ount '-ount o2e&#( o2e&#((i (ie$ e$
!%,<<< !,<<<
"<,<<< =
A<< A<<
PROBLEM ". Jo+ O&$e& O&$e& C1e C1e Ent&ies. Ent&ies.
T/e 0oo:in 0oo:in o-(ete$ o-(ete$ ost s/eets :e&e (&e(#&e$ 0o& t/&ee t/&ee
JustinTi-e #n$ B#70us/in
!)!
*o+s t/#t :e&e in (&o$ution $u&in '(&i in t/e S(ei# S(ei# O&$e& Di2ision o0 B1&on Co-(#n13 Co-(#n13 Jo+ <9)
Jo+ )%!
Di&et -#te&i#s Di&et #+o&
Jo+ 94;
= ;,<<<
=,)<<
=4,!<<
9,<< ),"<< %,<<
'((ie$ 0#to&1 o2e&/e#$
;,9<< 5,4)5 ;,!<
'o:#ne 0o& o--e&i# e(enses #n$ (&o0it
!!,<5<), <),)"% 9,!<
On '(&i !, Jo+ <9) :#s )5 o-(ete o-(ete #s to -#te&i#s, -#te&i#s, #+o&, #n$ o2e&/e#$.
It :#s
0inis/e$ $u&in t/e -ont/. -ont/. T/e ot/e& *o+s :e&e :e&e st#&te$ #n$ #n$ 0inis/e$ $u&in t/e -ont/. Jo+s <9) #n$ 94; :e&e so$ on #ount #t t/e en$ o0 t/e -ont/. Re6ui&e$3 P&e(#&e ene&# *ou&n# *ou&n# ent&ies to +e &eo&$e$ in '(&i '(&i to #u-u#te t/ese t/ese *o+
osts 0o& o&7 in P&oess #s :e #s 0o& 8inis/e$ Goo$s #n$ 0o& t/e s#e o0 t/e t:o *o+s.
!)
C/#(te& !<
SOLUTION De+it
C&e$it
o&7 in P&oess M#te&i#s o&7 in P&oess
% , "<< %, "<< !),%<<
'&ue$ P#1&o o&7 in P&oess
!),%<<
!","<
8#to&1 O2e&/e#$ Cont&o 8inis/e$ Goo$s
!","< 55,995
o&7 in P&oess Cost o0 Goo$s So$
55,995 4<,5<
8inis/e$ Goo$s
4<,5<
'ounts Reei2#+e
;<,)%<
S#es
;<,)%<
A.5 =;,<<< =,)<< =4,!<<
A.5 =9,<< << =),"< ,"<< =%,<<
A.5 A.5 =;,9 =;,9<< << =5,4 =5,4)5 )5 =;,! =;,!< <
PROBLEM 4. Fo1#e& In. (&o$ues (&o$ues usto-ie$ 2#ns 2#ns in # *o+ o&$e& o&$e& s/o(. On No2e-+e& !, t/e 0oo:in +##nes #((e#& in t/e in2ento&1 &eo&$s3
JustinTi-e #n$ B#70us/in
!)"
8inis/e$ oo$s
=!)9,<<<
o&7 in (&oess
"<%,<<<
M#te&i#s
%",<<<
T/e #-ount in 8inis/e$ Goo$s &e(&esents &e(&esents =!
F#n !%<
F#n !%!
=)5,<<< ;<,<<<
=5<,<<<
4 < ,< < <
;,<<<
=5,<<<
<,<<<
),<<< 5,<<<
!)4
C/#(te& !<
T/e 0oo:in t&#ns#tions ou&&e$ $u&in No2e-+e&3 A# A#
Pu& Pu&/# /#se se$ $ -#te -#te&i &i# #ss on # #ou ount nt,, =%<, =%<,<< <<<. <.
A+
Re6uis Re6uisiti itione one$ $ =;<,<< =;<,<<< < o0 -#te -#te&i# &i#s s 0&o0&o- in2e in2ento nto&13 &13 =!5,< =!5,<<< << #((i #((ie$ e$ to F#n !%<, !%<,
=5,<<< to F#n !%!, #n$ =!;,<<< to F#n !%, # ne: o&$e&? t/e +##ne :#s 0o& in$i&et -#te&i#s. A
Reo&$ Reo&$e$ e$ t/e t/e i#+ii i#+iit1 t1 0o& 0o& t/e (#1& (#1&o o #n$ #n$ t/e t/e #+o& #+o& ost ost $ist& $ist&i+u i+utio tion n in # sin sine e ent&13 ent&13
tot# (#1&o, =<%,)5<. O0 t/e (#1&o ost, ost, !< #((ie$ to F#n !)9, < to F#n !%<, "5 to F#n !%!, "< to F#n !%, #n$ t/e &e-#in$e& to in$i&et #+o&. A$
P#i$ t/e (#1&o.
Ae
'((ie '((ie$ $ 0#to 0#to&1 &1 o2e&/e o2e&/e#$ #$ #t #t t/e t/e &#te &#te o0 !5< !5< o0 $i&et $i&et #+o& #+o& ost. ost.
A0
Co-(ete$ F# F#ns !) !)9 #n #n$ !% !%<.
A A
So$ So$ F#n F#nss !)5, !)5, !)) !)),, #n$ #n$ !%< !%< #t 5< 5< o2e& o2e& -#n -#nu0 u0# #tu tu&i &in n os osts ts..
Re6ui&e$3 P&e(#&e ene&# *ou&n# ent&ies to &eo&$ t/ese t&#ns#tions. t&#ns#tions.
SOLUTION De+it C&e$it A#
M#te&i#s
%<,<<<
'ounts P#1#+e A+
% < ,< < <
8#to&1 O2e&/e#$ Cont&o
4,<<<
o&7 in P&oess
5;,<<<
M#te&i#s
;<,<<<
A
8#to&1 O2e&/e#$ Cont&o
o&7 in P&oess
!<,4")
!9%,"!"
'&ue$ P#1&o
<%,)5<
A$
<%,)5<
'&ue$ P#1&o
JustinTi-e #n$ B#70us/in
C#s/ Ae
!)5
<%,)5< o&7 in P&oess
9),4)<
'((ie$ 8#to&1 O2e&/e#$ A0
9),4)<
8inis/e$ Goo$s
49,5;"
o&7 in P&oess
49,5;"
A
59",<;"
'ounts Reei2#+e
S#es Cost o0 Goo$s So$ 8inis/e$ Goo$s
59",<;" "95,")5 "95,")5
!);
C/#(te& !<
PROBLEM 5. M#nu0#tu&in Costs. Costs. T/e :o&7 in in (&oess #ount #ount o0 Me1e&s Co-(#n1 Co-(#n1 s/o:e$3 o&7 in P&oess M#te&i#s
=,<<<
Di&et #+o&
"),<<<
8#to&1 o2e&/e#$
55,5<<
8inis/e$ oo$s
=;%,<<<
M#te&i#s /#&e$ to t/e one *o+ sti sti in (&oess #-ounte$ #-ounte$ to =5,<<<. 8#to&1 o2e&/e#$ o2e&/e#$ is #((ie$ #s # (&e$ete&-ine$ (e&ent#e o0 $i&et #+o& ost. Re6ui&e$3 Co-(ute t/e 0oo:in3
A! A!
T/e T/ e #-o #-oun untt o0 o0 $i& $i&e ett #+ #+o& o& ost ost in 0ini 0inis/ s/e$ e$ oo$ oo$s. s.
A A
T/e T/ e #-o #-oun untt o0 o0 0# 0#to to&1 &1 o2e& o2e&/e /e#$ #$ in 0ini 0inis/ s/e$ e$ oo oo$s $s..
SOLUTION A! A!
T/e T/ e #-o #-oun untt o0 o0 $i& $i&e ett #+ #+o& o& in 0ini 0inis/ s/e$ e$ oo oo$s $s33
8inis/e$ oo$s
=;%,<<<
M#te&i#s inu$e$ in 0inis/e$ oo$s
!),<<<
Di&et #+o& #n$ 0#to&1 o2e&/e#$ in 0inis/e$ oo$s act"ry "%er*ead c*ared t" ("r) in pr"cess $55,500 = = &.5 Direct la"r c*ared t" ("r) in pr"cess $3',000
Let G $i&et #+o& in 0inis/e$ oo$s
=5!,<<<
JustinTi-e #n$ B#70us/in
!))
.5G =5!,<<< $i&et #+o& #n$ 0#to&1 o2e&/e#$ in 0inis/e$ oo$s G
A
=<,4<< $i&et #+o& in 0inis/e$ oo$s T/e #-ount o0 0#to&1 o2e&/e#$ in 0inis/e$ oo$s3
G
=<,4<<
!.5G !.5A=<,4<< !.5G ="<,;<< 0#to&1 o2e&/e#$ in 0inis/e$ oo$s
PROBLEM ;. M#nu0#tu&in Costs. Costs. Te$$1 Co-(#n1 is to su+-it # +i$ on t/e (&o$ution (&o$ution o0 5,5<< 2#ses. It is esti-#te$ t/#t t/#t t/e ost o0 -#te&i#s :i +e =%,5<<, =%,5<<, #n$ t/e ost o0 $i&et #+o& :i +e =!,<<<. 8#to&1 o2e&/e#$ o2e&/e#$ is #((ie$ #t 5< o0 $i&et #+o& ost in t/e Mo$in De(#&t-ent #n$ #n$ #t =).5< (e& $i&et #+o& /ou& in t/e 8inis/in De(#&t-ent. De(#&t-ent. O0 t/e #+o2e $i&et #+o&, it is esti-#te$ t/#t 5<< $i&et #+o& /ou&s #t # ost o0 =4,<<< :i +e &e6ui&e$ in 8inis/in. 8inis/in. T/e o-(#n1 :is/es # -#&7u( -#&7u( o0 !<< o0 its tot# (&o$ution ost.
!)%
C/#(te& !<
Re6ui&e$3 Dete&-ine t/e 0oo:in3
A!
Estiti-#te$ ost to to (&o$ue.
A
Estiti-#te$ (&i-e ost.
A" A"
Esti Esti-# -#tte$ on2 on2e&s e&sion ion ost ost..
A4
Bi$ (&ie.
SOLUTION A!
M#te&i#s
=
Di&et #+o&
%, 5<<
!,<<<
8#to&1 o2e&/e#$3 Mo$in A5< =%,<<<
4,<<<
8inis/in A5<< DLH =).5< Esti-#te$ ost to (&o$ue A
M#te&i#s
",)5< =
=
%,5<
% , 5 <<
Di&et #+o&
!,<<<
Esti-#te$ (&i-e ost
=
<,5<<
A"
=
!,<<<
Di&et #+o&
8#to&1 o2e&/e#$
),)5<
Esti-#te$ on2e&sion ost
=
A4
Esti-#te$ ost to (&o$ue
M#&7u( A=%,5< !<< Bi$ (&ie
PROBLEM
=
!9,)5< =
%,5<
%,5< 5;,5<<
JustinTi-e #n$ B#70us/in
!)9
). 8o: o0 Costs T/&ou/ T 'ounts. 'ounts. T/e P#-e& Co-(#n1 Co-(#n1 /#$ t/e 0oo:in in2ento&ies #t t/e +einnin #n$ en$ o0 Ju13 Ju1 ! Ju1 "! M#te&i#s
=<,<<<
o&7 in (&oess 8inis/e$ oo$s
@
= 45,<<< !%5,<<<
;5,<<<
!!5,<<<
Du&in Ju1, t/e ost o0 -#te&i#s (u&/#se$ :#s =!;<,<<< #n$ 0#to&1 o2e&/e#$ o0 =!5,<<< :#s #((ie$ #t # &#te o0 )5 o0 $i&et #+o& #+o& ost. Ju1 ost o0 oo$s so$ :#s =4<,<<<. Re6ui&e$3 P&e(#&e o-(ete$ T #ounts s/o:in t/e t/e 0o: o0 t/e ost o0 oo$s
-#nu0#tu&e$ #n$ so$.
JustinTi-e #n$ B#70us/in
!9)
SOLUTION
In2.
M#te&i#s
o&7 in P&oess
< ,< < <
8G
IP
!"5,<<<
In2.
M#te&i#s
!%<,<<<
8#to&1
45,<<<
o2e&/$.
!5,<<<
4)5,<<<
!%5,<<<
Cost o0 o0 Go Goo$s So So$
;5,<<<
CGS
9<,<<<
"55,<<<
CG'C#n#$# A#$#(te$.
4<,<<<
8G
4<,<<<
Re(&inte$ :it/ (e&-ission.
Beinnin nnin in in2ento&1 IP
En$in $in in in2ento&1 CGS
=;5,< =;5,<<< << IP IP =!!5 =!!5,< ,<<< << =4< =4<,<< ,<<< < IP
=9<,<<<
Be Bei inn nnin in IP IP M0. M0. ost ostss
En$i En$in n IP IP 8G
Be Beinnin IP =4;,; ;,;;)
=!%5,<< ,<<< =9<,<<<
Beinnin IP
=4%,"""
!9)
L#+o& !;;,;;)
8inis/e$ Go Goo$s
!!5,<<<
!"5,<<<
IP
9<,<<<
Pu&/. !;<,<<<
In2.
4%,"""
!9%
C/#(te& !<
'CTIFIT 'CCOUNTING3 'CCOUNTING3 'CTIFITB'SED COSTING 'ND 'ND 'CTIFITB'SED 'CTIFITB'SED M'N'GEMENT
MULTIPLE CHOICE
'
!.
' +#se use$ to #o#te t/e ost o0 # &esou&e to t/e $i00e& 0e&ent #ti2iti ities
usin t/#t &esou&e is #An3
B
.
'.
&esou&e $&i2e&
B.
#ti2it1 $&i2e&
C.
0in# ost o+*et
D.
$&i2e&
E.
none o0 t/e #+o2e
' +#se us use$ to to #o#te t/e o ost o0 o0 (&o$uts, u usto-e&s, o& o& ot ot/e& 0i0in# o ost
o+*ets is #An3
B
".
'.
&esou&e $&i2e&
B.
#ti2it1 $&i2e&
C.
0in# ost o+*et
D.
$&i2e&
E.
none o0 t/e #+o2e
E#-(es o0 o0 # #ti2ities #t #t t/ t/e +# +#t/ e e2e o0 o0 osts in inu$e3 '.
uttin, (#int intin, #n #n$ (#7#in
B.
s/e$uin, se settin u( u(, #n #n$ -o -o2in
C.
$esi esini nin n, /#n /#ni in n,, #n$ #n$ #$2 #$2e&ti e&tissin in
D.
/e#tin, i/tin, #n$ seu&it1
E.
none o0 t/e #+o2e
!9%
JustinTi-e #n$ B#70us/in
C
D
4.
5.
!99
E#-(es o0 #ti2ities #t t/e (&o$ut e2e o0 osts inu$e3 '.
uttin, (#int intin, #n #n$ (#7#in
B.
s/e$uin, se settin u( u(, #n #n$ -o -o2in
C.
$esi esini nin n, /#n /#ni in n,, #n$ #n$ #$2 #$2e&ti e&tissin in
D.
/e#tin, i/tin, #n$ seu&it1
E.
none o0 t/e #+o2e
E#-(es o0 o0 # #ti2ities #t #t t/ t/e ( (#nt e e2e o0 o0 o osts in inu$e3 '.
uttin, (#int intin, #n #n$ (#7#in
B.
s/e$uin, se settin u( u(, #n #n$ -o -o2in
C.
$esi esini nin n, /#n /#ni in n,, #n$ #n$ #$2 #$2e&ti e&tissin in
D.
/e#tin, i/tin, #n$ seu&it1
E.
none o0 t/e #+o2e
!99
<<
'
'
C
D
B
C/#(te& !4
;.
).
%.
9.
!< .
E#-(es o0 #ti2ities #t #t t/e unit e e2e o0 osts inu$e3 '.
uttin, (#int intin, #n #n$ (#7#in
B.
s/e$uin, se settin u( u(, #n #n$ -o -o2in
C.
$esi esini nin n, /#n /#ni in n,, #n$ #n$ #$2 #$2e&ti e&tissin in
D.
/e#tin, i/tin, #n$ seu&it1
E.
none o0 t/e #+o2e
E#-(es o0 unite2e osts #&e3 '.
(o&t (o&tio ions ns o0 ee eet& t&i iit it11 #n$ #n$ in$i in$i&e &et t -#te -#te&i &i# #ss
B.
s##& ##&iies o0 s s/e$u /e$ue e&s &s #n$ #n$ set setu u( (e& (e&ssonn onne
C.
s##& ##&iies o0 $esi $esin ne& e&ss #n$ (&o& &o&# #--e&s -e&s
D.
$e(&e e(&ei i#t #tio ion n #n$ #n$ insu insu&# &#n ne e on on +ui +ui$ $in ins s
E.
none o0 t/e #+o2e
E#-(es o0 (&o$ute2e osts #&e3 '.
(o&t (o&tio ions ns o0 ee eet& t&i iit it11 #n$ #n$ in$i in$i&e &et t -#te -#te&i &i# #ss
B.
s##& ##&iies o0 s s/e$u /e$ue e&s &s #n$ #n$ set setu u( (e& (e&ssonn onne
C.
s##& ##&iies o0 $esi $esin ne& e&ss #n$ (&o& &o&# #--e&s -e&s
D.
$e(&e e(&ei i#t #tio ion n #n$ #n$ insu insu&# &#n ne e on on +ui +ui$ $in ins s
E.
none o0 t/e #+o2e
E#-(es o0 (#nte2e osts #&e3 '.
(o&t (o&tio ions ns o0 ee eet& t&i iit it11 #n$ #n$ in$i in$i&e &et t -#te -#te&i &i# #ss
B.
s##& ##&iies o0 s s/e$u /e$ue e&s &s #n$ #n$ set setu u( (e& (e&ssonn onne
C.
s##& ##&iies o0 $esi $esin ne& e&ss #n$ (&o& &o&# #--e&s -e&s
D.
$e(&e e(&ei i#t #tio ion n #n$ #n$ insu insu&# &#n ne e on on +ui +ui$ $in ins s
E.
none o0 t/e #+o2e
E#-(es o0 +#t/e2e osts #&e3 '.
(o&t (o&tio ions ns o0 ee eet& t&i iit it11 #n$ #n$ in$i in$i&e &et t -#te -#te&i &i# #ss
B.
s##& ##&iies o0 s s/e$u /e$ue e&s &s #n$ #n$ set setu u( (e& (e&ssonn onne
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
'
B
!!.
!.
C.
s##& ##&iies o0 $esi $esin ne& e&ss #n$ (&o& &o&# #--e&s -e&s
D.
$e(&e e(&ei i#t #tio ion n #n$ #n$ insu insu&# &#n ne e on on +ui +ui$ $in ins s
E.
none o0 t/e #+o2e
E#-(es o0 unite2e #ti2it1 $&i2e&s inu$e3 '.
unit nits o0 o0 ou out(ut #n #n$ $i $i&et # #+o& /o /ou&s
B.
nu-+e& o0 o0 +# +#t/es #n #n$ -# -#te&i# -o -o2es
C.
nu-+e u-+e&& o0 (&o$u &o$ut tss #n$ #n$ $esi $esin n /#n /#nes es
D.
s6u#&e 0oot#e ou(ie$
E.
# o0 t/e #+o2e
E#-(es o0 o0 +# +#t/e2e # #ti2it1 $& $&i2e&s in inu$e3 '.
unit nits o0 o0 ou out(ut #n #n$ $i $i&et # #+o& /o /ou&s
B.
nu-+e& o0 o0 +# +#t/es #n #n$ -# -#te&i# -o -o2es
C.
nu-+e u-+e&& o0 (&o$u &o$ut tss #n$ #n$ $esi $esin n /#n /#nes es
D.
s6u#&e 0oot#e ou(ie$
E.
# o0 t/e #+o2e
<
C
D
'
D
E
C/#(te& !4
!".
!4.
!5.
!;.
!).
E#-(es o0 (&o$ute e2e #ti2it1 $&i2e&s inu$e3 '.
unit nits o0 o0 ou out(ut #n #n$ $i $i&et # #+o& /o /ou&s
B.
nu-+e& o0 o0 +# +#t/es #n #n$ -# -#te&i# -o -o2es
C.
nu-+e u-+e&& o0 (&o$u &o$ut tss #n$ #n$ $esi $esin n /#n /#nes es
D.
s6u#&e 0oot#e ou(ie$
E.
# o0 t/e #+o2e
E#-(es o0 o0 ( (#nte2e # #ti2it1 $& $&i2e&s in inu$e3 '.
unit nits o0 o0 ou out(ut #n #n$ $i $i&et # #+o& /o /ou&s
B.
nu-+e& o0 o0 +# +#t/es #n #n$ -# -#te&i# -o -o2es
C.
nu-+e u-+e&& o0 (&o$u &o$ut tss #n$ #n$ $esi $esin n /#n /#nes es
D.
s6u#&e 0oot#e ou(ie$
E.
# o0 t/e #+o2e
Unite2e osts #&e osts t/#t3 '.
ine2 ine2it it#+ #+1 1 in& in&e# e#se se :/en :/ene2 e2e& e& # uni unitt is is (&o (&o$u $ue e$ $
B.
#&e #&e #u #use se$ $ +1 +1 t/e t/e nu-+ nu-+e& e& o0 +#t +#t/e /ess (&o (&o$u $ue e$ $ #n$ #n$ so$ so$
C.
#&e #&e in inu& u&&e &e$ $ to su(( su((o& o&tt t/e t/e nunu-+e +e&& o0 o0 $i00 $i00e& e&en entt (&o (&o$u $ut tss (&o (&o$u $ue e$ $
D.
#&e #&e in inu& u&&e &e$ $ to to sus sust# t#in in #(# #(#i it1 t1 #t # (&o (&o$u $ut tio ion n sit site e
E.
none o0 t/e #+o2e
P#nte2e osts #&e osts t/#t3 '.
ine2 ine2it it#+ #+1 1 in& in&e# e#se se :/en :/ene2 e2e& e& # uni unitt is is (&o (&o$u $ue e$ $
B.
#&e #&e #u #use se$ $ +1 +1 t/e t/e nu-+ nu-+e& e& o0 +#t +#t/e /ess (&o (&o$u $ue e$ $ #n$ #n$ so$ so$
C.
#&e #&e in inu& u&&e &e$ $ to su(( su((o& o&tt t/e t/e nunu-+e +e&& o0 o0 $i00 $i00e& e&en entt (&o (&o$u $ut tss (&o (&o$u $ue e$ $
D.
#&e #&e in inu& u&&e &e$ $ to to sus sust# t#in in #(# #(#i it1 t1 #t # (&o (&o$u $ut tio ion n sit site e
E.
none o0 t/e #+o2e
Unite2e $&i2e&s #&e3 '.
in2e in2e&s &se e11 (&o( (&o(o& o&ti tion on# # to t/e t/e 2ou 2ou-e -e o0 out( out(ut ut
B.
-e#s -e#su& u&es es o0 #t #ti2 i2it itie iess t/#t t/#t 2#& 2#&11 :it :it/ / t/e t/e nunu-+e +e&& o0 +#t +#t/e /ess (&o (&o$u $ue e$ $
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
#n$ so$ C.
-e#s -e#su& u&es es o0 o0 #ti #ti2i 2it1 t1 t/# t/#tt 2#&1 2#&1 :it :it/ / t/e t/e nu-+ nu-+e& e& o0 o0 $i00 $i00e& e&en entt (&o$ (&o$u uts ts
(&o$ue$ #n$ so$
'
!%. !%.
D.
0o& #ssini nin (#nt nte e2e osts
E.
none o0 t/e #+o2e
T&#$ T&#$it itio ion# n# os osti tin n s1ste 1ste-s #&e /#& /#&# #te te&i &ie e$ $ +1 t/ei t/ei&& use use o0 o0 :/i :/i/ / o0 t/e t/e
0oo:in -e#su&es #s +#ses 0o& #o#tin o2e&/e#$ to out(ut3
E
!9.
'.
unite2e $&i2e&s
B.
+#t/e2e $& $&i2e&s
C.
(&o$ute2e $& $&i2e&s
D.
(#nte2e $& $&i2e&s
E.
none o0 t/e #+o2e
'BC s1 s1ste-s #& #&e / /#&#te&i &ie$ +1 +1 t/ t/ei& us use o0 o0 :/ :/i/ o0 o0 t/ t/e 0o 0oo:in :in
-e#su&es #s +#ses 0o& #o#tin o2e&/e#$ to out(ut3 '.
unite2e $&i2e&s
B.
+#t/e2e $& $&i2e&s
C.
(&o$ute2e $& $&i2e&s
D.
(#nte2e $& $&i2e&s
E.
# o0 t/e #+o2e
<"
<4
'
C/#(te& !4
<. <.
' ' o0 o0 t/ t/e 0o 0oo o:i :in n #&e $is $istin tinti tio ons t/#t /#t us usu# u#11 ei eisst +et +et:e :een en t&# t&#$iti $ition on# # #n$ #n$
'BC ostin s1ste-s, eGe(t t/#t3 t/#t3 '.
t/e t/e nunu-+e +e&& o0 o0 o2e o2e&/ &/e# e#$ $ os ostt (oo (oos s ten$ ten$ss to to +e +e o: o:e& e& in 'BC 'BC s1s s1ste te-s -s
B.
t/e t/e nunu-+e +e&& o0 o0 # #o o#t #tio ion n +#s +#ses es ten$ ten$ to +e /i/ /i/e& e& in 'BC 'BC s1s s1ste te-s -s
C.
ost ostss :it :it/i /in n #n #n 'BC 'BC ost ost (oo (oo ten$ ten$ to +e -o&e -o&e /o-o /o-oe ene neou ouss t/# t/#n n
t/e osts :it/in # t&#$ition# s1ste->s ost (oo D.
# # 'BC 'BC s1s s1ste te-s -s #&e #&e t:o t:os st# t#e e os osti tin n s1s s1ste te-s -s,, :/i :/ie e t&#$ t&#$it itio ion# n#
s1ste-s -#1 +e one o& t:ost#e E. D
!. !.
# o0 t/e #+o2e #&e $istinti ntion onss
' ' o0 o0 t/ t/e 0o 0oo o:i :in n #&e $is $istin tinti tio ons t/#t /#t us usu# u#11 ei eisst +et +et:e :een en t&# t&#$iti $ition on# # #n$ #n$
'BC ostin s1ste-s, eGe(t t/#t3 t/#t3 '.
t/e t/e nu-+ nu-+e& e& o0 o2e& o2e&/e /e#$ #$ os ostt (oo (oos s ten ten$s $s to to +e +e /i/ /i/e& e& in in 'BC 'BC
B.
t/e t/e nunu-+e +e&& o0 o0 # #o o#t #tio ion n +#s +#ses es ten$ ten$ to +e /i/ /i/e& e& in 'BC 'BC s1s s1ste te-s -s
C.
ost ostss :it :it/i /in n #n #n 'BC 'BC ost ost (oo (oo ten$ ten$ to +e -o&e -o&e /o-o /o-oe ene neou ouss t/# t/#n n
s1ste-s
t/e osts :it/in # t&#$ition# s1ste->s ost (oo D.
# # 'BC 'BC s1s s1ste te-s -s #&e #&e one onest st# #e e ost ostin in s1st s1stee-s, s, :/i :/ie e t&# t&#$i $iti tion on# #
s1ste-s -#1 +e one o& t:ost#e E. B
.
# o0 t/e #+o2e #&e $istinti ntion onss
Co-(#&e$ &e$ to to #n #n 'B 'BC s1 s1ste-, # t&#$ition tion# # ostin s1 s1ste- &e &e(o&ts3 '.
# o: o:e& e& unit unit os ostt 0o& 0o& /i/ /i/2o 2ou u-e -e (&o (&o$u $ut tss #n$ #n$ # /i/ /i/e& e& uni unitt ost ost 0o& 0o&
o:2ou-e (&o$uts B.
# /i/ /i/e& e& uni unitt ost ost 0o& 0o& /i/ /i/2o 2ou u-e -e (&o (&o$u $ut tss #n$ #n$ # o: o:e& e& uni unitt ost ost 0o& 0o&
o:2ou-e (&o$uts C.
t/e t/e s#s#-e e uni unitt os osts ts 0o& 0o& /i /i/ / #n$ #n$ o:2 o:2o ouu-e e (&o (&o$u $ut tss #s #s $oe $oess #n #n
D.
eit/ eit/e& e& /i/ /i/e& e& o& o& o: o:e& e& unit unit os ostt 0o& 0o& /i/ /i/2o 2ou u-e -e (&o (&o$u $ut tss t/#n t/#n #n #n 'BC 'BC
'BC s1stes1ste- $e(en$in u(on t/e e2e o0 0ie$ osts E.
none o0 t/e #+o2e
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
C
".
<5
'ti2it1+#se$ -#n#e-ent A'BM is3 '.
# os osti tin n s1s s1ste te- in in :/i :/i/ / -u -uti ti( (e e o2e& o2e&/e /e#$ #$ os ostt (oo (ooss #&e #&e # #o o#t #te$ e$
usin +#ses t/#t inu$e one o& -o&e non2ou-e &e#te$ 0#to&s B.
# +#s +#se e use use$ $ to to # #o o#t #te e t/e t/e ost ost o0 # &es &esou ou& &e e to to t/e t/e $i00 $i00e& e&en entt
#ti2ities usin it C.
t/e t/e use use o0 in0o in0o&&-#t #tio ion n o+t o+t#i #ine ne$ $ 0&o 0&o- 'BC 'BC to -#7e -#7e i-(& i-(&o2 o2ee-en ents ts in
D.
# +#s +#se e use use$ $ to to # #o o#t #te e t/e t/e ost ost o0 #n #ti #ti2i 2it1 t1 to (&o$ (&o$u uts ts #n$ #n$
E.
none o0 t/e #+o2e
t/e 0i&usto-e&s
'
4. 4.
' ' o0 t/e t/e 0oo oo:i :in n #&e :#1s :#1s t/# t/#t #ti #ti2i 2iti ties es #n +e -#n -#n#e #e$ to #/i /ie2e e2e
i-(&o2e-ents in # (&oess, eGe(t3
C
5.
'.
#ti2it1 in$ution
B.
#ti2it1 ei-in#tion
C.
#ti2it1 seetion
D.
#ti2it1 s/#&in
E.
# # o0 t/e t/e #+o2 #+o2e e #&e #&e :#1 :#1ss in :/i :/i/ / #ti #ti2i 2iti ties es -#1 -#1 +e -#n# -#n#e e$ $
' o0 o0 t/ t/e 0o 0oo:in :in #& #&e e e#-(es o0 o0 no non2# 2#ue# e#$$e$ # #ti2i i2ities eGe(t3 '.
o&$e&in
B.
&eei2in
C.
#sse-+in
D.
ins(etions
E.
settin u(
<;
C/#(te& !4
PROBLEMS
PROBLEM !. Le2es o0 'ti2it1 D&i2e&s Re6ui&e$3 E#/ o0 o0 t/e 0oo:in is # (otenti# (otenti# #ti2it1 $&i2e&. I$enti01 t/e t/e -ost i7e1 e2e
o0 e#/ #ti2it1 $&i2e& +1 :&itin U 0o& # unite2e $&i2e&, B 0o& # +#t/e2e $&i2e&, #n$ P 0o& # (&o$ute2e $&i2e&. !.
Nu-+e& o0 setu(s
.
Nu-+e& o0 :o&7 o&$e&s
".
M#/ine /ou&s
4.
Poun$s o0 (&o$ut
5.
Nu-+e& o0 (#&t nu-+e&s
;.
Desin /ou&s
).
Nu-+e& o0 o0 $e $esin / /#nes
%.
M#&7etin (&o-otions
9.
Di&et -#te&i#s $o#&s
!< .
Lo#$s o0 -#te&i#s -o2e$
SOLUTION !.
B
.
B
".
U
4.
U
5.
P
;.
P
).
P
%.
P
9.
U
!<.
B
PROBLEM
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
<)
. Disto&tion o0 B#t/Le2e B#t/Le2e Costs. M#u(in Co-(#n1>s eistin eistin ost s1ste- #u-u#tes # o2e&/e#$ in # sine sine ost (oo #n$ #o#tes it +#se$ on $i&et #+o& /ou&s. /ou&s. L#st 1e#&, o2e&/e#$ osts tot#e$ =!,5<<,<<<, #n$ P&o$ut ' use$ ",<<< o0 t/e "<,<<< tot# $i&et #+o& /ou&s. 'n 'BC stu$1 stu$1 &e2e#e$ t/#t o0 t/e tot# o2e&/e#$ o2e&/e#$ ost 0o& #st #st 1e#&, =!<<,<<< &e(&esente$ +#t/e2e osts? t/ese +#t/e2e osts #&e $&i2en +1 :o&7 o&$e&s? #n$ # tot# o0 5<< :o&7 o&$e&s :e&e issue$, o0 :/i/ 5 :e&e 0o& P&o$ut '. Re6ui&e$3 it/ &es(et to +#t/e2e osts osts on1, #u#te #u#te t/e eistin ost s1ste->s
$i&etion #n$ #-ount o0 ost $isto&tion 0o& P&o$ut '.
SOLUTION T/e eistin s1ste- #o#te$ ",<<<"<,<<< !< o0 # o2e&/e#$ to P&o$ut ' #st 1e#&? +ut ' #ounte$ #ounte$ 0o& on1 55<< 55<< 5 o0 +#t/e2e #ti2it1. So, :it/ &es(et to +#t/e2e osts on1, t/e eistin s1ste- o2e&st#te$ '>s ost #st 1e#& +1 # tot# o03 A!< 5 =!<<,<<< =5,<<< o2e&st#te-ent
<%
C/#(te& !4
PROBLEM ". F#ue'$$e$ #n$ NonF#ue'$$e$ 'ti2ities. Se6uenti# Co-(#n1>s Co-(#n1>s soe (&o$ut, # uni6ue en$ t#+e -#$e 0&o- u-+e&, is (&o$ue$ #n$ so$ in t/e 0oo:in se6uene o0 ste(s3 A# A#
:oo$ :oo$ &ee &eei2 i2e$ e$ #n$ #n$ ins ins(e (et te$ e$ #t &ee &eei2 i2in in $ $o o77
A+ A+
:oo :oo$ -o -o2e$ 2e$ to to sto sto&e &ess in2 in2en ento to&1 &1
A A
:oo :oo$ -o -o2e$ 2e$ to to Cut Cutti tin n De( De(#&t #&t-en -ent
A$
:oo$ ut to sie
Ae Ae
-o2 -o2e$ to P#n P#nin in De(# De(#&t &t-e -ent nt
A0
(# (#e$ in in 6u 6ueue to to #: #:#it ( (#nin
A
:oo$ s-oot/e$ #n #n$ s/#(e$
A/ A/
-o2 -o2e$ to Ins Ins(et (etio ion n De( De(# #&t-e &t-en nt
Ai
ins(ete$
A*
-o2e$ to to in in(&o (&oess st sto&#e #& #&e#
A7 A7
-o2 -o2e$ to 'sse 'sse-+ -+1 1 De(#& e(#&tt-e ent
A A
2#&i 2#&iou ouss (# (#&ts &ts o0 o0 t/e t/e t#+e #+e #&e #sse #sse-+ -+e$
A- A-
(# (#e$ e$ on on /#n$ /#n$ t&u t&u7 7 to to #:#i #:#itt -#te -#te&i &i# # /#n /#n$ $e& e&
An An
-o2 -o2e$ to St#i St#ini nin n De(# e(#&t&t-ent ent
Ao
t#+es st st#ine$
A( A(
-o2 -o2e$ to Ins Ins(et (etio ion n De( De(# #&t-e &t-en nt
A6
ins(ete$
A&
-o2e$ to S/ S/i((in De De(#&t-ent
As
t#+es s/i((e$
Re6ui&e$3 /i/ o0 t/e t/e ste(s #$$ #$$ 2#ue to t/e (&o$ut@
SOLUTION
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
'ti2ities A$, A, A, #n$ Ao #&e t/e on1 ones :/i/ #$$ 2#ue.
<9
!<
C/#(te& !4
PROBLEM 4. 'o#tion R#tes #n$ D&i2e& R#tes. T/e B#&&e Di2ision Di2ision o0 S&#nton Co-(#n1 -#nu0#tu&es -#nu0#tu&es -#n1 /i/2ou-e (&o$uts #n$ -#n1 o:2ou-e (&o$uts. Seete$ in0o&-#tion 0oo:s 0o& B#&&e>s -ost &eent 1e#& o0 o(e&#tions3 In$i&et osts3 M#/ine &e#te$3 M#/ine o(e&#tion
=
)5,<<<
M#/ine setu(
5 < ,< < <
Tot# -#/ine o2e&/e#$
=
!5,<<<
M#te&i#s &e#te$3 M#te&i#s /#n$in
=
45,<<<
Ot/e& -#te&i#s&e#te$
;<,<<<
Tot# -#te&i#s o2e&/e#$
=
!<5,<<<
Ot/e& o2e&/e#$
=
!9<,<<<
Tot# o2e&/e#$
=
4<,<<<
M#/ine /ou&s
!< , < < <
Poun$s o0 -#te&i#s
5 <,< < <
Setu( /ou&s
!,<<<
Pu&/#se o&$e&s
!,<<
Di&et #+o& /ou&s
5,<<<
B#&&e>s eistin ost s1ste- #o#tes # -#/ine&e#te$ o2e&/e#$ +#se$ on -#/ine /ou&s #n$ # t/e &e-#inin o2e&/e#$ +#se$ +#se$ on $i&et #+o& #+o& /ou&s. Ho:e2e&, # &eent &eent stu$1 $ete&-ine$ t/#t -#/ine setu( osts #n$ -#te&i# /#n$in osts #&e (&i-#&i1 &e#te$ to setu( /ou&s, #n$ ot/e& -#te&i#s&e#te$ osts #&e (&i-#&i1 &e#te$ to t/e nu-+e& o0 (u&/#se (u&/#se o&$e&s issue$. issue$. B#&&e $oes not 7ee( sini0i#nt -#te&i#s -#te&i#s in2ento&ies
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
!!
on /#n$.
Re6ui&e$3
A!
C#u C#u#te #te t/e t/e t:o t:o o2e& o2e&/e# /e#$ $ &#tes &#tes in in B#&&e> B#&&e>ss eist eistin in ost ost s1stes1ste- 0o& t/e -ost -ost &een &eentt
1e#&. A
C#u C#u#te #te t/e t/e o2e&/ o2e&/e#$ e#$ A$&i A$&i2e& 2e& &#tes &#tes t/#t t/#t #n 'BC 'BC s1ste s1ste- :ou$ :ou$ use use 0o& t/e t/e -ost -ost
&eent 1e#&, -#7in on1 t/e /#nes sueste$ +1 t/e &esuts o0 t/e &eent stu$1.
!
C/#(te& !4
SOLUTION A! $&25,000 " mac*ine- related "%er*ead = $&2.50 per mac*ine *"ur &0,000 mac*ine *"urs
$295,000 " remainin "%er*ead c"sts = $&&.0 per direct la"r *"ur 25,000 D/
A $'5,000 " mac*ine "perati"n "%er*ead &0,000 mac*ine *"urs
= $'.50 per mac*ine *"ur
$50,000 " mac*ine-setup "%er*ead + $45,000 " materials *andlin "%er*ead &,000 setup *"urs
$10,000 " "t*er materials- related c"st &,200 purc*ase purc *ase "rders
$&90,000 " "t*er "%er*ead 25,000 D/
= $95 per setup *"ur
= $50 per purc*a se "rder
= $'.10 per direct la"r *"ur
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
!"
PROBLEM 5. Co-(#&ison o0 'BC 'BC #n$ T&#$ition# Costin? Costin? T:o P&o$uts. P&o$uts. B#ine Co-(#n1 (&o$ues (&o$ues t:o (&o$uts, Ni0t1 #n$ SoSo, #n$ uses # ostin s1ste- in :/i/ # o2e&/e#$ is #u-u#te$ in # sine ost ost (oo #n$ #o#te$ +#se$ on -#/ine /ou&s. B#ine>s -#n#e-ent /#s $ei$e$ to i-(e-ent 'BC +e#use # ost stu$1 /#s &e2e#e$ sini0i#nt #-ounts o0 o2e&/e#$ o2e&/e#$ ost &e#te$ to to setu( #ti2it1 #n$ #n$ $esin #ti2it1. T/e nu-+e& o0 o0 setu(s #n$ t/e nu-+e& o0 $esin /ou&s :i +e t/e #ti2it1 $&i2e&s 0o& t/e t:o ne: ost (oos, #n$ -#/ine /ou&s :i ontinue #s t/e +#se 0o& #o#tin t/e &e-#inin o2e&/e#$. Seete$ in0o&-#tion 0oo:s 0o& B#ine Co-(#n1>s -ost &eent 1e#& o0 o(e&#tions3
Ni0t1
SoSo Tot#
Units (&o$ue$
5<<
!5,5<<
!;,<<<
Di&et -#te&i# ost3 Pe& unit Tot#
= =
<<
!<<,<<<
M#/ine /ou&s Di&et #+o& ost Setu(s Desin /ou&s
= !< ;,<<<
=
<
=
"!<,<<<
=
4!<,<<<
",<<<
4),<<<
5<,<<<
5 < ,< <<
=
=
%<
<< 4,<<<
"5<,<<< !< , < < <
O2e&/e#$3 Setu(&e#te$
=
5<,<<<
Desin &e#te$ Ot/e& Tot# o2e&/e#$
"5<,<<< 9<<,<<< =
!, !,5<<,<<<
4<<,<<<
!4
C/#(te& !4
Re6ui&e$3
A!
C#u C#u#te #te t/e t/e tot# tot# #n$ (e&uni (e&unitt osts osts &e(o& &e(o&te$ te$ 0o& t/e t:o t:o (&o$ (&o$ut utss +1 t/e t/e eis eistin tin
ostin s1ste-. A
C#u C#u#te #te t/e t/e tot# tot# #n$ (e&uni (e&unitt osts osts &e(o& &e(o&te$ te$ 0o& t/e t:o t:o (&o$ (&o$ut utss +1 t/e t/e 'BC 'BC
s1ste-.
!
C/#(te& !4
SOLUTION A!
B#ine Co-(#n1 P&o$ut Costs 0&o- Eistin Cost S1ste-
O2e&/e#$ R#te3 =!,5<<,<<< o0 o2e&/e#$ $i2i$e$ +1 5<,<<< -#/ine /ou&s ="< (e& -#/ine /ou& Ni0t1
SoSo Tot#
Di&et -#te&i#
=
!< < , < < <
Di&et #+o&
5<,<<<
=
"!<,<<<
"5<,<<<
=
4!<,<<<
4<<,<<<
O2e&/e#$3 ="< ",<<<
9<,<<<
="< 4),<<< Tot# ost
!,4!<,<<< =
4<,<<<
Units (&o$ue$ Cost (e& unit
A
=
,<)<,<<<
5<< =
4% 4%<.<<
=
!,5<<,<<< ,"!<,<<<
!5,5<< =
!"".55
B#ine Co-(#n1 P&o$ut Costs 0&o- 'ti2it1B#se$ Costin S1ste-
O2e&/e#$ R#te3 =5<,<<< setu(&e#te$ osts $i2i$e$ +1 << setu(s !,5< (e& setu( ="5<,<<< $esin&e#te$ osts $i2i$e$ +1 !<,<<< $esin /ou&s ="5 (e& $esin /ou& =9<<,<<< o0 ot/e& o2e&/e#$ $i2i$e$ +1 5<,<<< -#/ine /ou&s =!% (e& -#/ine /ou& Ni0t1
SoSo Tot#
Di&et -#te&i#
=
!< < , < < <
Di&et #+o&
5<,<<<
=
"!<,<<<
"5<,<<<
!
=
4!<,<<<
4<<,<<<
'ti2it1 'ountin3 'ti2it1B#se$ Costin #n$ 'ti2it1B#se$ M#n#e-ent
!"
O2e&/e#$3 =!,5< !< setu(s
!5<,<<<
=!,5< %< setu(s
!<<,<<<
="5 ;,<<< $esin /ou&s
!<,<<<
="5 4,<<< $esin /ou&s
!4<,<<<
=!% ",<<< -#/ine /ou&s
"5<,<<<
54,<<<
=!% 4),<<< -#/ine /ou&s
5<,<<<
%4;,<<<
9<<,<<<
Tot# ost
=
5;4,<<<
Units (&o$ue$ Cost (e& unit
=
!,)4;,<<<
5<< =
!,!%.<<
=
,"!<,<<<
!5,5<< =
!!.;5
ST'ND'RD COSTING3 INCORPOR'TING ST'ND'RDS INTO THE 'CCOUNTING RECORDS
MULTIPLE CHOICE
Question Nos. %!5, !), #n$ !9! !9 ! #&e 'ICP' #$#(te$. Question Nos. !;, , #n$ " #&e ICM' #$#(te$. Question No. !% is CI' #$#(te$. D
!.
/en t/e #-ount 0o 0o& -#te&i# &i#s in2 in2ento&1 in t/e ene&# e$e $e& &e(&esents
t/e st#n$#&$ ost o0 -#te&i#s #n$ t/e -#te&i#s e$e& #&$s #&e 7e(t in 6u#ntities on1, t/e -#te&i#s (&ie 2#&i#ne is3 '.
&eo &eo&$ &$e$ e$ #t t/e t/e titi-e e o0 o0 $is $is(o (osi siti tion on o0 t/e t/e in2 in2en ento to&1 &1
B.
ino&e$
C.
&eo &eo&$ &$e$ e$ :/en :/en -#te -#te&i# &i#s s #&e #&e &e6u &e6uis isit itio ione ne$ $ 0o& 0o& (&o$ (&o$u uti tion on
!"
!4
B
C/#(te& !4
.
D.
&e &eo&$e &$e$ :/en :/en -#t -#te&i# &i#s #&e #&e &eei eei2e 2e$ $
E.
#o#te$ to to o ost o0 o0 s# s#es on on1
' o-(#n1 &e &eo&$e$ t/ t/e 0o oo:in *o *ou&n# en ent&1 :/en -# -#te&i#s :e :e&e is issue sue$
to t/e 0#to&13 o&7 in P&oess
9,<<<
M#te&i#s Qu#ntit1 F#&i#ne M#te&i#s
<< %,%<<
'ssu-in t/#t t/e&e :#s +ot/ # (&ie 2#&i#ne #n$ # 6u#ntit1 2#&i#ne #ssoi#te$ :it/ t/ese -#te&i#s, t/is ent&1 in$i#tes t/#t t/e -et/o$ use$ 0o& -#te&i#s (&ie 2#&i#nes is to3
D
".
'.
#o #o# #te te 2#& 2#&i# i#n nes es to to en$i en$in n in2 in2en ento to&i &ies es #n$ #n$ os ostt o0 s# s#es es
B.
&eo &eo&$ &$ 2#&i 2#&i#n #ne ess #t #t t/e t/e ti-e ti-e -#te -#te&i &i# #ss #&e #&e &ee &eei2 i2e$ e$
C.
&eo &eo&$ &$ 2#&i 2#&i#n #ne ess #t #t t/e t/e ti-e ti-e o0 $is( $is(os osit itio ion n o0 o0 :o& :o&77 in in (&o (&oe ess ss
D.
#o #o# #te te 2#&i# &i#nes nes to os ostt o0 o0 s#e s#ess on on11
E.
&eo &eo&$ &$ 2#&i 2#&i#n #ne ess #t #t t/e t/e ti-e ti-e -#te -#te&i &i# #ss #&e #&e use$ use$
F#&i#n #nes &e &esutin 0& 0&o- -# -#te&i# &i#s (&i (&ie / /#nes t/#t #& #&e to to +e +e (# (#sse$ on on to to
usto-e&s #&e3 '.
/#&e$ to ost o0 oo$s so$
B.
#&& #&&ie ie$ $ #s #s # s(e s(ei# i# &e &e$i $itt to to in2 in2en ento to&1 &1 #o #oun unts ts
C.
&e &eo&$e &$e$ # #ss o&$ o&$iin#&1 n#&1 in0# n0#ti tion on &e2e &e2en nue
D.
#o #o# #te te$ $ to to in2 in2en ento to&i &ies es #n$ #n$ os ostt o0 o0 oo oo$s $s so$ so$
E.
/#&e$ to # s(ei# oss #ount
!4
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
E
4.
!5
/en st#n$#&$ o ost 2#&i#nes #& #&e si sini0 ni0ii#nt, Co Cost ' 'ountin St St#n$# n$#&$s
&e6ui&e t/#t t/e 2#&i#nes +e3 '.
/#&e$ to ost o0 oo$s so$
B.
$e0e&&e$
C.
#o #o# #te te$ $ to in2 in2en ento to&ie &iess on1 on1 i0i0 t/e1 t/e1 #&e #&e # #o o#t #te$ e$ so soe e11 0o& 0o& 0in# 0in#n ni# i#
&e(o&tin (u&(oses
D
5.
D.
&eo &eo&$ &$e$ e$ #s et& et&# # ino ino-e -e in t/e t/e u& u&&e &ent nt (e&i (e&io$ o$
E.
#o #o# #te te$ $ to to in2 in2en ento to&i &ies es #s :e :e #s ost ost o0 oo$ oo$ss so so$ $
I0 ne ne: st st#n$#&$ o osts &e &e0e et o on$itions ons t/ t/#t #0 #00ete$ t/ t/e # #tu# o ost o0 o0
oo$s in t/e en$in in2ento&1, t/en en$in in2ento&ies #&e oste$ #t3
'
D
;.
).
'.
t/e t/e on ont& t&# # #-o #-ou unt #&& #&&iie$ in ost ost o0 o0 s# s#es es
B.
t/e o$ st#n$#&$
C.
t/e t/e #-o #-ou unt #&& #&&iie$ in t/e t/e 2#&i 2#&i#n #ne e #ou ount ntss
D.
t/e ne: st#n$#&$
E.
#tu# ost
' &e$it +# +##ne in in t/ t/e # #+o& e0 e00iien1 2# 2#&i#ne in in$i#tes t/ t/#t3 '.
st#n$#& $#&$ /o /ou&s e eee$ # #tu# /o /ou&s
B.
#tu# /ou&s e eee$ st st#n$#&$ /o /ou&s
C.
st#n st#n$# $#&$ &$ &#t &#te e #n$ #n$ st#n st#n$# $#&$ &$ /ou /ou&s &s e eee ee$ $ #tu #tu# # &#t &#te e #n$ #n$ #tu #tu# # /ou /ou&s &s
D.
#tu #tu# # &#t &#te e #n$ #n$ #t #tu# u# /ou& /ou&ss e eee ee$ $ st#n st#n$# $#&$ &$ &#te &#te #n$ #n$ st# st#n$ n$#& #&$ $ /ou& /ou&ss
E.
none o0 t/e #+o2e
' $e $e+it +# +##ne in in # $i&et # #+o& e0 e00iien1 2# 2#&i#ne # #ount unt in$ in$ii#tes t/ t/#t3 '.
#tu #tu# # tot tot# # $i& $i&e ett #+o #+o&& ost ostss inu inu&& &&e$ e$ :e& :e&e e ess ess t/# t/#n n st#n st#n$# $#&$ &$ $i& $i&e ett
#+o& osts #o:e$ 0o& t/e units (&o$ue$ B.
t/e t/e nunu-+e +e&& o0 o0 uni units ts (&o$ (&o$u ue$ e$ :#s :#s es esss t/# t/#n n t/e t/e nu-+ nu-+e& e& o0 unit unitss
+u$ete$ 0o& t/e (e&io$ C. t/e st#n$#&$ &#te
t/e t/e #2e& #2e&# #e e :# :#e e &#te &#te (#i$ (#i$ to $i& $i&e ett #+ #+o& o& e-( e-(o o1e 1ees es :#s :#s ess ess t/# t/#n n
!;
C/#(te& !9
D.
t/e t/e st# st#n$ n$#& #&$ $ /ou /ou&s &s #o #o:e :e$ $ 0o& 0o& t/e t/e uni units ts (&o$ (&o$u ue$ e$ :e&e :e&e ess ess t/#n t/#n
#tu# $i&et #+o& /ou&s use$ E.
# o0 t/e #+o2e
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
E
%.
!)
Jose1 M# M#nu0#tu& tu&in Co Co&(o&#tio tion us uses # st#n$#&$ o ost s1 s1ste- t/ t/#t &e &eo&$s &$s
$i&et -#te&i#s #t #tu# ost, &eo&$s -#te&i#s (&ie 2#&i#nes #t t/e ti-e t/#t $i&et -#te&i#s #&e issue$ to :o&7 in (&oess, #n$ (&o&#tes # 2#&i#nes #t 1e#& en$. F#&i#nes #ssoi#te$ :it/ $i&et -#te&i#s #&e (&o&#te$ +#se$ on t/e $i&et -#te&i#s +##nes in t/e #((&o(&i#te #ounts, #n$ 2#&i#nes #ssoi#te$ :it/ $i&et #+o& #n$ 0#to&1 o2e&/e#$ #&e (&o&#te$ +#se$ on t/e $i&et #+o& +##nes in t/e #((&o(&i#te #ounts. T/e 0oo:in in0o&-#tion is #2#i#+e 0o& Jose1 0o& t/e 1e#& en$e$ Dee-+e& "!3 8inis/e$ oo$s in2ento&1 #t Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
= %) %),<<< !"<,5<<
'((ie$ 0#to&1 o2e&/e#$
!<4,4<<
Di&et -# -#te&i#s in in2ento&1 #t #t De Dee-+e& "! "!
;5,<<<
Cost o0 oo$s so$ 0o& t/e 1e#& en$e$ Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
"4%,<<< )"9,5<<
'((ie$ 0#to&1 o2e&/e#$
59!,;<<
Di&et -# -#te&i#s (& (&ie 2# 2#&i#ne Au Aun0#2o&#+e
!,5<<
Di&et -#te&i#s us#e 2#&i#ne A0#2o&#+e
!5,<<<
Di&et #+o& &#te 2#&i#ne Aun0#2o&#+e Di&et #+o& e00iien1 2#&i#ne A0#2o&#+e 8#to&1 o2e&/e#$ inu&&e$
<,<<< 5,<<<
;9<,<<<
T/e&e :e&e no no +einnin in2ento&ies #n$ #n$ no en$in :o&7 in (&oess in2ento&1. in2ento&1. 8#to&1 o2e&/e#$ is #((ie$ #t %< o0 st#n$#&$ $i&et #+o& ost. T/e #-ount o0 $i&et -#te&i#s (&ie 2#&i#ne to +e (&o&#te$ to 0inis/e$ oo$s in2ento&1 #t Dee-+e& "! is #3 '.
=!,)4< $e+it
B.
=,<<< $e+it
!%
C/#(te& !9
C.
=,;!< &e$it
D.
=",<<< &e$it
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 $87,000 $87,000 + $348,000
_ $12,500 = $2,500
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
'
9.
!9
Jose1 M# M#nu0#tu& tu&in Co Co&(o&#tio tion us uses # st#n$#&$ o ost s1 s1ste- t/ t/#t &e &eo&$s &$s
$i&et -#te&i#s #t #tu# ost, &eo&$s -#te&i#s (&ie 2#&i#nes #t t/e ti-e t/#t $i&et -#te&i#s #&e issue$ issue$ to :o&7 in in (&oess, #n$ (&o&#tes (&o&#tes # 2#&i#nes #t 1e#& en$. F#&i#nes #ssoi#te$ :it/ $i&et -#te&i#s #&e (&o&#te$ +#se$ on t/e $i&et -#te&i#s +##nes in t/e #((&o(&i#te #ounts, #n$ 2#&i#nes #ssoi#te$ :it/ $i&et #+o& #n$ 0#to&1 o2e&/e#$ #&e (&o&#te$ +#se$ on t/e $i&et #+o& +##nes in t/e #((&o(&i#te #ounts. T/e 0oo:in in0o&-#tion is #2#i#+e 0o& Jose1 0o& t/e 1e#& en$e$ Dee-+e& "!3 8inis/e$ oo$s in2ento&1 #t Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
= %) %),<<< !"<,5<<
'((ie$ 0#to&1 o2e&/e#$
!<4,4<<
Di&et -# -#te&i#s in in2ento&1 #t #t De Dee-+e& "! "!
;5,<<<
Cost o0 oo$s so$ 0o& t/e 1e#& en$e$ Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
"4%,<<< )"9,5<<
'((ie$ 0#to&1 o2e&/e#$
59!,;<<
Di&et -# -#te&i#s (& (&ie 2# 2#&i#ne Au Aun0#2o&#+e
!,5<<
Di&et -#te&i#s us#e 2#&i#ne A0#2o&#+e
!5,<<<
Di&et #+o& &#te 2#&i#ne Aun0#2o&#+e Di&et #+o& e00iien1 2#&i#ne A0#2o&#+e 8#to&1 o2e&/e#$ inu&&e$
<,<<< 5,<<<
;9<,<<<
T/e&e :e&e no no +einnin in2ento&ies #n$ #n$ no en$in :o&7 in (&oess in2ento&1. in2ento&1. 8#to&1 o2e&/e#$ is #((ie$ #t %< o0 st#n$#&$ $i&et #+o& ost. T/e tot# #-ount o0 $i&et -#te&i#s in 0inis/e$ oo$s in2ento&1 #t Dee-+e& "!, #0te& # -#te&i#s 2#&i#nes /#2e +een (&o&#te$, is3 '.
=%;,5<<
B.
=%),5<<
<
C/#(te& !9
C.
=%%,<<<
D.
=%;,<<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3
$',000 $',000 $&2,500 $&5,000 $',000 + $34,000 $',000 + $34,000
$',000 +
= $1,500
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
C
!<. !<.
!
Jose1 ose1 M#nu M#nu00#tu #tu&i &in n Co&( o&(o&#ti &#tion on use uses # st#n st#n$# $#&$ &$ ost ost s1st s1stee- t/#t t/#t &eo &eo&$ &$ss
$i&et -#te&i#s #t #tu# ost, &eo&$s -#te&i#s (&ie 2#&i#nes #t t/e ti-e t/#t $i&et -#te&i#s #&e issue$ issue$ to :o&7 in in (&oess, #n$ (&o&#tes (&o&#tes # 2#&i#nes #t 1e#& en$. F#&i#nes #ssoi#te$ :it/ $i&et -#te&i#s #&e (&o&#te$ +#se$ on t/e $i&et -#te&i#s +##nes in t/e #((&o(&i#te #ounts, #n$ 2#&i#nes #ssoi#te$ :it/ $i&et #+o& #n$ 0#to&1 o2e&/e#$ #&e (&o&#te$ +#se$ on t/e $i&et #+o& +##nes in t/e #((&o(&i#te #ounts. T/e 0oo:in in0o&-#tion is #2#i#+e 0o& Jose1 0o& t/e 1e#& en$e$ Dee-+e& "!3 8inis/e$ oo$s in2ento&1 #t Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
= %) %),<<< !"<,5<<
'((ie$ 0#to&1 o2e&/e#$
!<4,4<<
Di&et -# -#te&i#s in in2ento&1 #t #t De Dee-+e& "! "!
;5,<<<
Cost o0 oo$s so$ 0o& t/e 1e#& en$e$ Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
"4%,<<< )"9,5<<
'((ie$ 0#to&1 o2e&/e#$
59!,;<<
Di&et -# -#te&i#s (& (&ie 2# 2#&i#ne Au Aun0#2o&#+e
!,5<<
Di&et -#te&i#s us#e 2#&i#ne A0#2o&#+e
!5,<<<
Di&et #+o& &#te 2#&i#ne Aun0#2o&#+e Di&et #+o& e00iien1 2#&i#ne A0#2o&#+e 8#to&1 o2e&/e#$ inu&&e$
<,<<< 5,<<<
;9<,<<<
T/e&e :e&e no no +einnin in2ento&ies #n$ #n$ no en$in :o&7 in (&oess in2ento&1. in2ento&1. 8#to&1 o2e&/e#$ is #((ie$ #t %< o0 st#n$#&$ $i&et #+o& ost. T/e tot# #-ount o0 $i&et #+o& in 0inis/e$ oo$s in2ento&1 #t Dee-+e& "!, #0te& # 2#&i#nes /#2e +een (&o&#te$, is3 '.
=!;,)5<
B.
=!"4,5<
C/#(te& !9
C.
=!",)5<
D.
=!"",)5<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3
$&30,500 $20,000 $5,000 $&30,500 + $'39,500 $&30,500 + $'39,500
$&30,500 +
$&30,500
= $&32,'50
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
B
!!. !!.
"
Jose1 ose1 M#nu M#nu00#tu #tu&i &in n Co&( o&(o&#ti &#tion on use uses # st#n st#n$# $#&$ &$ ost ost s1st s1stee- t/#t t/#t &eo &eo&$ &$ss
$i&et -#te&i#s #t #tu# ost, &eo&$s -#te&i#s (&ie 2#&i#nes #t t/e ti-e t/#t $i&et -#te&i#s #&e issue$ issue$ to :o&7 in in (&oess, #n$ (&o&#tes (&o&#tes # 2#&i#nes #t 1e#& en$. F#&i#nes #ssoi#te$ :it/ $i&et -#te&i#s #&e (&o&#te$ +#se$ on t/e $i&et -#te&i#s +##nes in t/e #((&o(&i#te #ounts, #n$ 2#&i#nes #ssoi#te$ :it/ $i&et #+o& #n$ 0#to&1 o2e&/e#$ #&e (&o&#te$ +#se$ on t/e $i&et #+o& +##nes in t/e #((&o(&i#te #ounts. T/e 0oo:in in0o&-#tion is #2#i#+e 0o& Jose1 0o& t/e 1e#& en$e$ Dee-+e& "!3 8inis/e$ oo$s in2ento&1 #t Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
= %) %),<<< !"<,5<<
'((ie$ 0#to&1 o2e&/e#$
!<4,4<<
Di&et -# -#te&i#s in in2ento&1 #t #t De Dee-+e& "! "!
;5,<<<
Cost o0 oo$s so$ 0o& t/e 1e#& en$e$ Dee-+e& "!3 Di&et -#te&i#s Di&et #+o&
"4%,<<< )"9,5<<
'((ie$ 0#to&1 o2e&/e#$
59!,;<<
Di&et -# -#te&i#s (& (&ie 2# 2#&i#ne Au Aun0#2o&#+e
!,5<<
Di&et -#te&i#s us#e 2#&i#ne A0#2o&#+e
!5,<<<
Di&et #+o& &#te 2#&i#ne Aun0#2o&#+e Di&et #+o& e00iien1 2#&i#ne A0#2o&#+e 8#to&1 o2e&/e#$ inu&&e$
<,<<< 5,<<<
;9<,<<<
T/e&e :e&e no no +einnin in2ento&ies #n$ #n$ no en$in :o&7 in (&oess in2ento&1. in2ento&1. 8#to&1 o2e&/e#$ is #((ie$ #t %< o0 st#n$#&$ $i&et #+o& ost. T/e tot# ost o0 oo$s so$ 0o& t/e 1e#& en$e$ Dee-+e& "!, #0te& # 2#&i#nes /#2e +een (&o&#te$, is3 '.
=!,;9",%5<
B.
=!,;%4,)5<
4
C/#(te& !9
C.
=!,;)5,45<
D.
=!,;%",)<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 ="4%,<<< =)"9,5<< =59!,;<< A=!5,<<< .%5 . %5 A=,5<< .%< .%5 A=;,<<< =!,;%4,)5<
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
B
!. !.
5
#ise #ise&& M#nu0 nu0#tu #tu&i &in n Co-(# -(#n1 uses uses # st# st#n$# n$#&$ ost ost s1ste 1ste- in #ou ount ntin in
0o& t/e osts o0 (&o$ution o0 its on1 (&o$ut, (&o$ut, P&o$ut '. T/e st#n$#&$s 0o& 0o& t/e (&o$ution o0 one unit o0 P&o$ut ' #&e #s 0oo:s3 Di&et -#te&i#s3 !< 0eet o0 Ite- ! #t =.)% (e& 0oot #n$ " 0eet o0 Ite- #t =! (e& 0oot Di&et #+o&3 4 /ou&s #t =".;< (e& /ou& 8#to&1 o2e&/e#$3 #((ie$ #t !5< o0 st#n$#&$ $i&et #+o& osts T/e&e :#s no in2ento&1 on /#n$ #t t/e en$ o0 t/e 1e#&. M#te&i#s (&ie 2#&i#nes #&e iso#te$ #t (u&/#se. 8oo:in is # su--#&1 su--#&1 o0 osts osts #n$ &e#te$ $#t# $#t# 0o& t/e (&o$ution (&o$ution o0 P&o$ut ' $u&in t/e 1e#&3 !<<,<<< 0eet o0 Ite- ! :e&e (u&/#se$ #t =.)5 (e& 0oot. "<,<<< 0eet o0 Ite- :e&e (u&/#se$ #t =.9< (e& 0oot. %,<<< units o0 P&o$ut ' :e&e (&o$ue$ t/#t &e6ui&e$ )%,<<< 0eet o0 Ite- !, ;,<<< 0eet o0 Ite- , #n$ "!,<<< /ou&s o0 $i&et #+o& #t =".5< (e& /ou&. ;,<<< units o0 P&o$ut ' :e&e so$. T/e tot# $e+its to t/e $i&et -#te&i#s #ount 0o& t/e (u&/#se o0 Ite- ! s/ou$ +e3 '.
=)5,<<<
B.
=)%,<<<
C.
=5%,5<<
D.
=;<,<<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 !<<,<<< =.)% =)%,<<<
;
D
C/#(te& !9
!". !".
#ise #ise&& M#nu0 nu0#tu #tu&i &in n Co-(# -(#n1 uses uses # st# st#n$# n$#&$ ost ost s1ste 1ste- in #ou ount ntin in
0o& t/e osts o0 (&o$ution o0 its on1 (&o$ut, (&o$ut, P&o$ut '. T/e st#n$#&$s 0o& 0o& t/e (&o$ution o0 one unit o0 P&o$ut ' #&e #s 0oo:s3 Di&et -#te&i#s3 !< 0eet o0 Ite- ! #t =.)% (e& 0oot #n$ " 0eet o0 Ite- #t =! (e& 0oot Di&et #+o&3 4 /ou&s #t =".;< (e& /ou& 8#to&1 o2e&/e#$3 #((ie$ #t !5< o0 st#n$#&$ $i&et #+o& osts T/e&e :#s no in2ento&1 on /#n$ #t t/e en$ o0 t/e 1e#&. M#te&i#s (&ie 2#&i#nes #&e iso#te$ #t (u&/#se. 8oo:in is # su--#&1 su--#&1 o0 osts osts #n$ &e#te$ $#t# $#t# 0o& t/e (&o$ution (&o$ution o0 P&o$ut ' $u&in t/e 1e#&3 !<<,<<< 0eet o0 Ite- ! :e&e (u&/#se$ #t =.)5 (e& 0oot. "<,<<< 0eet o0 Ite- :e&e (u&/#se$ #t =.9< (e& 0oot. %,<<< units o0 P&o$ut ' :e&e (&o$ue$ t/#t &e6ui&e$ )%,<<< 0eet o0 Ite- !, ;,<<< 0eet o0 Ite- , #n$ "!,<<< /ou&s o0 $i&et #+o& #t =".5< (e& /ou&. ;,<<< units o0 P&o$ut ' :e&e so$. T/e tot# $e+its to t/e :o&7 in (&oess #ount 0o& $i&et #+o& s/ou$ +e3 '.
=!!!,;<<
B.
=!<%,5<<
C.
=!!,<<<
D.
=!!5,<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 %,<<< 4 =".;< =!!5,<<
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
'
!4. !4.
)
#ise #ise&& M#nu0 nu0#tu #tu&i &in n Co-(# -(#n1 uses uses # st# st#n$# n$#&$ ost ost s1ste 1ste- in #ou ount ntin in
0o& t/e osts o0 (&o$ution o0 its on1 (&o$ut, (&o$ut, P&o$ut '. T/e st#n$#&$s 0o& 0o& t/e (&o$ution o0 one unit o0 P&o$ut ' #&e #s 0oo:s3 Di&et -#te&i#s3 !< 0eet o0 Ite- ! #t =.)% (e& 0oot #n$ " 0eet o0 Ite- #t =! (e& 0oot Di&et #+o&3 4 /ou&s #t =".;< (e& /ou& 8#to&1 o2e&/e#$3 #((ie$ #t !5< o0 st#n$#&$ $i&et #+o& osts T/e&e :#s no in2ento&1 on /#n$ #t t/e en$ o0 o0 t/e 1e#&. M#te&i#s (&ie 2#&i#nes 2#&i#nes #&e iso#te$ #t (u&/#se. 8oo:in is # su--#&1 su--#&1 o0 osts osts #n$ &e#te$ $#t# $#t# 0o& t/e (&o$ution (&o$ution o0 P&o$ut ' $u&in t/e 1e#&3 !<<,<<< 0eet o0 Ite- ! :e&e (u&/#se$ #t =.)5 (e& 0oot. "<,<<< 0eet o0 Ite- :e&e (u&/#se$ #t =.9< (e& 0oot. %,<<< units o0 P&o$ut ' :e&e (&o$ue$ t/#t &e6ui&e$ )%,<<< 0eet o0 Ite- !, ;,<<< 0eet o0 Ite- , #n$ "!,<<< /ou&s o0 $i&et #+o& #t =".5< (e& /ou&. ;,<<< units o0 P&o$ut ' :e&e so$. Be0o&e #o#tion o0 st#n$#&$ 2#&i#nes, t/e +##ne in t/e -#te&i#s 6u#ntit1 2#&i#ne #ount o0 Ite- :#s3 '.
=,<<< $e+it
B.
=!,<<< &e$it
C.
=,;<< $e+it
D.
=;<< $e+it
E.
=!,<<< $e+it
SUPPORTING C'LCUL'TION3 ;,<<< A%,<<< " =! =,<<<
%
C
C/#(te& !9
!5. !5.
#ise #ise&& M#nu0 nu0#tu #tu&i &in n Co-(# -(#n1 uses uses # st# st#n$# n$#&$ ost ost s1ste 1ste- in #ou ount ntin in
0o& t/e osts o0 (&o$ution o0 its on1 (&o$ut, (&o$ut, P&o$ut '. T/e st#n$#&$s 0o& 0o& t/e (&o$ution o0 one unit o0 P&o$ut ' #&e #s 0oo:s3 Di&et -#te&i#s3 !< 0eet o0 Ite- ! #t =.)% (e& 0oot #n$ " 0eet o0 Ite- #t =! (e& 0oot Di&et #+o&3 4 /ou&s #t =".;< (e& /ou& 8#to&1 o2e&/e#$3 #((ie$ #t !5< o0 st#n$#&$ $i&et #+o& osts T/e&e :#s no :o&7 in (&oess (&oess in2ento&1 on /#n$ #t t/e en$ o0 t/e 1e#&. M#te&i#s (&ie 2#&i#nes #&e iso#te$ iso#te$ #t (u&/#se. 8oo:in is # su--#&1 su--#&1 o0 osts osts #n$ &e#te$ $#t# $#t# 0o& t/e (&o$ution o0 P&o$ut ' $u&in t/e 1e#&3 !<<,<<< 0eet o0 Ite- ! :e&e (u&/#se$ #t =.)5 (e& 0oot. "<,<<< 0eet o0 Ite- :e&e (u&/#se$ #t =.9< (e& 0oot. %,<<< units o0 P&o$ut ' :e&e (&o$ue$ t/#t &e6ui&e$ )%,<<< 0eet o0 Ite- !, ;,<<< 0eet o0 Ite- , #n$ "!,<<< /ou&s o0 $i&et #+o& #t =".5< (e& /ou&. ;,<<< units o0 P&o$ut ' :e&e so$. I0 # st#n$#&$ 2#&i#nes #&e (&o&#te$ to in2ento&ies #n$ ost o0 oo$s so$, t/e #-ount o0 -#te&i#s 6u#ntit1 2#&i#ne 0o& Ite- to +e (&o&#te$ to $i&et -#te&i#s in2ento&1 :ou$ +e3 '.
=5<< $e+it
B.
=5<< &e$it
C.
<
D.
=""" &e$it
E.
=""" $e+it
SUPPORTING C'LCUL'TION3 T/e 2#&i#ne :ou$ +e #o#te$ on1 to 0inis/e$ oo$s #n$ ost o0 oo$s
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
so$. E
!;.
T/e -ost #((&o(&i#te ti-e ti-e 0&o- # ont&o st#n$(oint to &eo&$ #n1 2#&i#ne
o0 #tu# -#te&i#s (&ies 0&o- st#n$#&$ is3
C
!). !).
'.
#t t/e titi-e o0 -#te&i#s us#e
B.
#s nee$ nee$e$ e$ to e2# e2#u# u#te te t/e t/e (e& (e&0o 0o&&-#n #ne e o0 t/e t/e (u& (u&/ /#s #sin in -#n -#n# #e& e&
C.
#t t/e t/e titi-e e t/e t/e -#te -#te&i &i# #ss #&e #&e issu issue$ e$ +1 t/e t/e sto sto&e &e&o &ooo-
D.
#t 1e 1e#& en$, en$, :/en :/en # # 2#& 2#&ii#ne #ness :i :i +e +e 7no 7no:n :n
E.
#t t/e ti-e o0 (u&/#se
St#n$ t#n$#& #&$ $ osti ostin n :i :i (&o (&o$u $ue e t/e t/e s#-e ino ino-e -e +e0 +e0o&e o&e et&# t&#o& o&$i $in n#&1 #&1 iteite-ss
#s $oes #tu# ostin :/en st#n$#&$ ost 2#&i#nes #&e #ssine$ to3 '.
:o&7 :o&7 in (&o (&oes esss #n$ #n$ 0in 0inis is/e /e$ $ oo oo$s $s in2e in2ent nto& o&ie iess
B.
#n ino-e o& e(ense #ount
C.
ost o0 o0 o oo$s so so$ $ #n #n$ in in2ento&ie &ies
D.
ost o0 oo$s so$
E.
ino-e su--#&1
9
"<
D
C/#(te& !9
!%. !%.
/en ite-s te-s #&e t&#n t&#ns0 s0e e&&e$ &&e$ 0&o 0&o- sto sto&e &ess to to ( (&o &o$u $ution tion,, # #n n # # ou ount nt# #nt $e+i $e+its ts
o&7 in P&oess P&oess #n$ &e$its M#te&i#s. M#te&i#s. Du&in (&o$ution, # -#te&i#s 6u#ntit1 2#&i#ne 2#&i#ne -#1 ou&. M#te&i#s Qu#ntit1 F#&i#ne F#&i#ne is $e+ite$ 0o& #n un0#2o&#+e 2#&i#ne 2#&i#ne #n$ &e$ite$ 0o& # 0#2o&#+e 2#&i#ne. T/e intent o0 2#&i#ne 2#&i#ne ent&ies is to to (&o2i$e3
B
!9. !9.
'.
#o #oun unt# t#+i +iiit1 t1 0o& 0o& -#te -#te&i &i# #ss os ostt $u& $u&in in (&o (&o$u $ut tio ion n
B.
# -e# -e#ns ns o0 s#0 s#0e eu# u#&$ &$in in #sse #ssets ts in t/e t/e ust usto$ o$11 o0 t/e t/e s1s s1ste te-
C.
o-(i#ne :it/ G''P
D.
in0o in0o&&-#t #tio ion n 0o& 0o& use use in in ont ont&o &oin in t/e t/e ost ost o0 o0 (&o$ (&o$u uti tion on
E.
# o0 t/e #+o2e
't t/e t/e en$ en$ o o00 #n #n #o #oun unti tin n (e&io e&io$, $, # 6 6u# u#n ntit1 tit1 2#&i#n &i#ne e t/#t t/#t is sini ini00i#n i#ntt in in
#-ount s/ou$ +e3 '.
&e( &e(o&te$ &te$ #s # $e0 $e0e&&e e&&e$ $ /# /#&e &e o& &e$ &e$it it
B.
#o #o# #te te$ $ #-on #-on :o&7 :o&7 in in (&o (&oes esss in2e in2ent nto& o&1, 1, 0in 0inis is/e /e$ $ oo$ oo$ss in2e in2ent nto& o&1, 1,
#n$ ost o0 oo$s so$ C.
/#& /#&e e$ $ o& o& &e &e$i $ite te$ $ to to os ostt o0 o0 oo oo$s $s -#nu -#nu0# 0#t tu& u&e$ e$
D.
#o #o# #te te$ $ # #-o -on n ost ost o0 oo$ oo$ss -#n -#nu0 u0# #tu tu&e &e$, $, 0ini 0inis/ s/e$ e$ oo$ oo$ss
in2ento&1, #n$ ost o0 oo$s so$ E. C
<. <.
none o0 t/e #+o2e
/#t is t/e no&-# o&-# 1e 1e#&e #&en n$ t&e t&e#t #t-e -ent nt o0 i--# i--#te te&i &i# # 2#&i 2#&i# #nes nes &eo eoni nie e$ in in
# ost #ountin s1ste- utiiin st#n$#&$s@ '.
&e &e#s #ssi si0i 0ie$ e$ to to $e0e $e0e&& &&e$ e$ /#& /#&e ess unti unti # # &e# &e#te te$ $ (&o$ (&o$u uti tion on is is so$ so$
B.
#o #o# #te te$ $ #-o #-on n ost ost o0 oo$ oo$ss -#n -#nu0 u0# #tu tu&e &e$ $ #n$ #n$ en$i en$in n :o&7 :o&7 in
(&oess in2ento&1
'
!.
C.
os ose$ e$ to Cost Cost o0 Go Goo$ o$ss So So$ $ in in t/e t/e (e&io (e&io$ $ in in :/i :/i/ / t/e1 t/e1 #&os #&ose e
D.
#(i #(it# t#iie e$ $ #s # os ostt o0 o0 en$i en$in n 0in 0inis is/e /e$ $ oo$ oo$ss in2e in2ent nto& o&11
E.
none o0 t/e #+o2e
'n un un#e(t#+e t& t&e#t-ent o0 o0 0# 0#to&1 o2 o2e&/e#$ 2# 2#&i#nes #t #t #n #n in inte&i-
&e(o&tin $#te is to3
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
'.
#((o #((o&ti &tion on t/e t/e tot# tot# on1 on1 +et +et:e :een en :o& :o&77 in in (&o (&oes esss #n$ #n$ 0ini 0inis/ s/e$ e$ oo oo$s $s
in2ento&ies on /#n$ #t t/e en$ o0 t/e inte&i- &e(o&tin (e&io$ B.
#((o #((o&ti &tion on t/e t/e tot# tot# on1 on1 +et: +et:ee een n t/# t/#tt (#& (#&tt o0 o0 t/e t/e u&& u&&en entt (e& (e&io io$> $>ss
(&o$ution &e-#inin in in2ento&ies #t t/e en$ o0 t/e (e&io$ #n$ t/#t (#&t so$ $u&in t/e (e&io$ C.
#&& #&&11 0o& 0o&:# :#&$ &$ t/e t/e tot tot# # to to +e +e o00 o00se sett +1 o((o o((osi site te +# +##n #ne ess in #te #te&&
D.
/#& /#&e e o& &e$ &e$it it t/e t/e tot tot# # to to Cos Costt o0 o0 Goo Goo$s $s So$ So$ $u&i $u&in n t/e t/e (e&i (e&io$ o$
E.
# #&e #e(t#+e
(e&io$s
"!
"
'
C/#(te& !9
.
S#- Co-(#n1 #$o(te$ # st#n$#&$ ost s1ste- se2e&# &# 1e#&s #o. T/e
st#n$#&$ osts 0o& t/e (&i-e osts o0 its sine (&o$ut #&e #s 0oo:s3 M#te&i# A% 7io&#-s =5.<<7. L#+o& A; /ou&s =%.</&.
=4<.<< =49.<
T/e o(e&#tin $#t# in t/e 0oo:in ou-n :e&e t#7en 0&o- t/e &eo&$s 0o& No2e-+e&3 In(&oess +einnin in2ento&1 Cnone In(&oess en$in in2ento&1 C%<< units, )5 o-(ete #s to #+o&? -#te&i# is issue$ #t t/e +einnin o0 (&oessin Units o-(ete$ C5,;<< units Bu$ete$ out(ut C;,<<< units Pu&/#ses o0 -#te&i#s C5<,<<< 7io&#-s Tot# #tu# #+o& osts C="<<,);< 'tu# /ou&s o0 #+o& C";,5<< /ou&s M#te&i# us#e 2#&i#ne C=!,5<< un0#2o&#+e Tot# -#te&i# 2#&i#ne C=)5< un0#2o&#+e T/e tot# #-ount o0 -#te&i# #n$ #+o& ost t&#ns0e&&e$ to t/e 0inis/e$ oo$s #ount 0o& No2e-+e& is3 '.
=499,5<
B.
=5"5,<<
C.
=55<,
D.
=5;!,<4<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 A5,;<< =4< A5,;<< =49.< =499,5< =499,5 <
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
C
".
S#- Co-(#n1 #$o(te$ # st#n$#&$ ost s1ste- se2e&# &# 1e#&s #o. T/e
st#n$#&$ osts 0o& t/e (&i-e osts o0 its sine (&o$ut #&e #s 0oo:s3 M#te&i# A% 7io&#-s =5.<<7. L#+o& A; /ou&s =%.</&.
=4<.<< =49.<
T/e o(e&#tin $#t# in t/e 0oo:in ou-n :e&e t#7en 0&o- t/e &eo&$s 0o& No2e-+e&3 In(&oess +einnin in2ento&1 Cnone In(&oess en$in in2ento&1 C%<< units, )5 o-(ete #s to #+o&? -#te&i# is issue$ #t t/e +einnin o0 (&oessin Units o-(ete$ C5,;<< units Bu$ete$ out(ut C;,<<< units Pu&/#ses o0 -#te&i#s C5<,<<< 7io&#-s Tot# #tu# #+o& osts C="<<,);< 'tu# /ou&s o0 #+o& C";,5<< /ou&s M#te&i# us#e 2#&i#ne C=!,5<< un0#2o&#+e Tot# -#te&i# 2#&i#ne C=)5< un0#2o&#+e T/e tot# #-ount o0 -#te&i# #n$ #+o& ost in t/e en$in +##ne o0 :o&7 in (&oess in2ento&1 #t t/e en$ o0 No2e-+e& is3 '.
<
E.
none o0 t/e #+o2e
=9,%4< =;!,5< =)!,";<
SUPPORTING C'LCUL'TION3 A%<< =4< A%<< .)5 =49.< =;!,5<
""
"4
C
C/#(te& !9
4. 4.
/en t/e t/e # #-o -oun untt 0o 0o& -#t -#te e&i# &i#s in2e in2ent nto& o&11 in in t/ t/e en ene& e&# # e$ e$e& e& &e( &e(&ese &esen nts
t/e #tu# ost o0 -#te&i#s #n$ t/e -#te&i#s e$e& #&$s s/o: 6u#ntities #n$ $o#& 2#ues, t/e -#te&i#s (&ie 2#&i#ne is3
E
5.
'.
&eo &eo&$ &$e$ e$ #t t/e t/e titi-e e o0 o0 $is $is(o (osi siti tion on o0 t/e t/e in2 in2en ento to&1 &1
B.
ino&e$
C.
&eo &eo&$ &$e$ e$ :/en :/en -#te -#te&i# &i#s s #&e #&e &e6u &e6uis isit itio ione ne$ $ 0o& 0o& (&o$ (&o$u uti tion on
D.
&e &eo&$e &$e$ :/en :/en -#t -#te&i# &i#s #&e #&e &eei eei2e 2e$ $
E.
#o#te$ to to o ost o0 o0 s# s#es on on1
T/e t&e#t-ent o0 2#&i#nes $e $e(en$ en$s u(on # o0 o0 t/ t/e 0o oo:in, eGe(t t/e3 t/e3 '.
t1(e o0 2#&i#ne
B.
sie o0 t/e 2#&i#ne
C.
#use o0 t/e 2#&i#ne
D.
ti-in o0 t/e 2#&i#ne
E.
it $e $e(en$s u( u(on # # o0 o0 t/ t/e #+o2e
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
"5
T/e 0oo:in 6uestions #&e +#se$ on t/e -#te&i# in t/e '((en$iG to t/e /#(te&.
C
;.
' o-(#n1 &e &eo&$e$ t/ t/e 0oo:in *o *ou&n# en ent&13 o&7 in P&oess
!<,"!<
8#to&1 O2 O2e&/e#$ F# F#&i#+e E0 E00iien1 F# F#&i#ne
95<
8#to&1 O2e&/e#$ 8ie$ E00iien1 F#&i#ne
45
8#to&1 O2e&/e#$ Cont&o
!!,;%5
T/is ent&1 in$i#tes t/#t t/e3
'
).
'.
0ou& 0ou&2# 2#&i &i#n #ne e -et/ -et/o$ o$ is in use use #n$ #n$ t/e t/e 2#&i 2#&i#n #ne e is 0#2o 0#2o&# &#+ +e e
B.
t/&e t/&ee2 e2#& #&i# i#n ne e -et -et/o /o$ $ is is in in use use #n$ #n$ t/e t/e 2#&i 2#&i#n #ne e is 0#2o 0#2o&# &#+ +e e
C.
0ou& 0ou&2# 2#&i &i#n #ne e -et/ -et/o$ o$ is in use use #n$ #n$ t/e t/e 2#& 2#&i# i#n ne e is is un0 un0#2 #2o& o&#+ #+e e
D.
t:o2 t:o2#& #&i# i#n ne e -et -et/o /o$ $ is is in in u use se #n$ #n$ t/e t/e 2#&i 2#&i#n #ne e is 0#2o 0#2o&# &#+ +e e
E.
t/&e t/&ee2 e2#& #&i# i#n ne e -et -et/o /o$ $ is is in in use use #n$ #n$ t/e t/e 2#&i 2#&i#n #ne e is un0# un0#2o 2o&# &#+ +e e
In t/ t/e # #te&n# &n#ti2e t/ t/&ee &ee2# 2#&i#ne -e -et/o$, t/e ##-ount o0 o0 o2 o2e& o& o&
un$e&#((ie$ 0#to&1 o2e&/e#$ is #n#1e$ #s3
D
%. %.
'.
s(en s(en$i $in n,, i$ i$e e #( #(# #it it1, 1, #n$ #n$ e00 e00i iie ien n11 2#& 2#&i# i#n nes es
B.
2ou 2ou-e -e,, 2#& 2#&i# i#+ +e e e e00 00i iie ien n1, 1, #n$ #n$ 0i 0ie$ e$ e00i e00ii ien en1 1 2#&i 2#&i#n #ne ess
C.
ont ont&o &o#+ #+e e,, s(en s(en$i $in n,, #n$ #n$ i$ i$e e #( #(# #it it11 2#&i 2#&i#n #ne ess
D.
2ou 2ou-e -e,, 2#&i 2#&i#+ #+e e e00 e00i iie ien n1, 1, #n$ #n$ s(en s(en$i $in n 2#& 2#&i# i#n nes es
E.
none o0 t/e #+o2e
In t/e t/e 0ou 0ou&2# &2#&i &i#n #ne -et -et/ /o$, o$, t/e t/e #-o #-ount unt o0 o0 o2 o2e& e& o& o& un$ un$e e&#(( &#((iie$ e$ 0#to #to&1 &1
o2e&/e#$ is #n#1e$ #s3
2#&i#nes
'.
s(en s(en$i $in n,, i$e i$e #( #(# #it it1, 1, e00 e00i iie ien n1, 1, #n$ #n$ 2o 2ouu-e e 2#&i 2#&i#n #ne ess
B.
ont ont&o &o# #+ +e e i$ i$e e #( #(# #it it1, 1, s(en s(en$i $in n,, #n$ #n$ e00i e00ii ien en1 1 2#&i 2#&i#n #ne ess
C.
2#&i 2#&i#+ #+e e e00i e00ii ien en1 1,, 0ie$ 0ie$ e00i e00ii ien en1 1,, ont& ont&o o# #+ +e, e, #n$ #n$ 2ou2ou-e e 2#&i 2#&i#n #ne ess
D.
2#&i 2#&i#+ #+e e e00i e00ii ien en1 1,, 0ie 0ie$ $ e00i e00ii ien en1 1,, s(en s(en$i $in n,, #n$ #n$ i$e i$e #( #(# #it it11
";
C/#(te& !9
E.
none o0 t/e #+o2e
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
PROBLEMS
PROBLEM !. Jou&n# Ent&ies 0o& 0o& F#&i#nes. P#&&ot/e#$ Co&(. $ete&-ines $ete&-ines t/#t t/e 0oo:in 2#&i#nes #&ose in (&o$ution $u&in M#&/3 F#&i#ne
'-ount
M#te&i#s (u&/#se (&ie
=,4<<
M#te&i#s 6u#ntit1
!,<<< 0#2o&#+e
L#+o& e00iien1
5 <<
L#+o& &#te
)5<
0#2o&#+e
0#2o&#+e
un0#2o&#+e
8#to&1 o2e&/e#$ 2ou-e 8#to&1 o2e&/e#$ ont&o#+e
!,)<< 0#2o&#+e ,95< un0#2o&#+e
M#te&i#s (u&/#ses tot#e$ =9<,<<< #t st#n$#&$ osts, :/ie =)),<<< in -#te&i#s :e&e t#7en 0&o- in2ento&1 0o& use in (&o$ution. (&o$ution. L#+o& (#1&o tot#e$ =!44,<<<, #n$ #tu# o2e&/e#$ inu&&e$ :#s =5;,<<<. Re6ui&e$3 P&e(#&e t/e *ou&n# ent&ies to &eo&$ t/e #+o2e 2#&i#nes, 2#&i#nes, inu$in t/e
&eo&$in o0 t/e #tu# #n$ #((ie$ 0#to&1 o2e&/e#$ usin # sine 0#to&1 o2e&/e#$ ont&o #ount.
SOLUTION M#te&i#s
9<,<<<
M#te&i#s Pu&/#se P&ie F#&i#ne 'ounts P#1#+e
,4<< %),;<<
")
"%
C/#(te& !9
o&7 in P&oess
)%,<<<
M#te&i#s
)),<<<
M#te&i#s Qu#ntit1 F#&i#ne
!,<<<
o&7 in P&oess
!4",)5<
L#+o& R#te F#&i#ne
)5<
P#1&o
!44,<<<
L#+o& E00iien1 F#&i#ne
5<<
8#to&1 O2e&/e#$ Cont&o
5;,<<<
F#&ious C&e$its
5;,<<<
o&7 in P&oess
54,)5<
8#to&1 O2e&/e#$ Cont&o#+e F#&i#ne 8#to&1 O2e&/e#$ Cont&o
,95< 5;,<<<
8#to&1 O2e&/e#$ Fou-e F#&i#ne
!,)<<
o& o&7 in P&oess 8#to&1 O2e&/e#$ Cont&o
54,)5< 54,)5<
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
8#to&1 O2e&/e#$ Cont&o#+e F#&i#ne
,95<
8#to&1 O2e&/e#$ Fou-e F#&i#ne 8#to&1 O2e&/e#$ Cont&o
"9
!,)<< !,5<
PROBLEM . Jou&n# Ent&ies, T/&eeF#&i#ne Met/o$. C#nei P&o$uts Co. (&esents t/e 0oo:in $#t# $#t# &e#te$ to June (&o$ution3 Ite-
!<< Bu Bu$et %< Bu Bu$et 'tu#
M#te&i#s
=
"<,<<<
L#+o&
;<,<<<
8#to&1 o2e&/e#$
%<,<<< =
")<,<<<
Ite-
!<< Bu Bu$et %< Bu Bu$et 'tu#
Di&et #+o& /ou&s
4,<<<
4%,<<<
=
L#+o& &#te
=
",<<<
=
=
",;<<
5,5<< 5<,<<<
5,5<<
"%,;<<
5,<<< 4,<<< 4,<<
=!.5<
M#te&i#s (u&/#ses
P&o$ution in units
,5<< ,<<< ,<<<
Re6ui&e$3 P&e(#&e t/e *ou&n# *ou&n# ent&ies to &eo&$ &eo&$ t/e #+o2e $#t#, $#t#, inu$in t/e &eo&$in o0
t/e #tu# #n$ #((ie$ 0#to&1 o2e&/e#$ usin # sine 0#to&1 o2e&/e#$ ont&o #ount #n$ usin t/e t/&ee2#&i#ne t/&ee2#&i#ne -et/o$. T/e o-(#n1 &eo&$s t/e -#te&i#s -#te&i#s (&ie 2#&i#ne 2#&i#ne #t t/e ti-e t/#t t/#t -#te&i#s #&e (u&/#se$. T/e 0#to&1 o2e&/e#$ o2e&/e#$ is +#se$ on t/e +u$et #t !<<. AHint3 To o+t#in t/e o2e&/e#$ o2e&/e#$ 2#&i#nes, 0i&st 0i&st so2e 0o& t/e 2#&i#+e o2e&/e#$ &#te.
4<
C/#(te& !9
SOLUTION o&7 in P&oess
4,<<<
M#te&i#s Qu#ntit1 F#&i#ne
4<<
M#te&i#s
",;<<
o&7 in P&oess
4%,<<<
L#+o& E0 E00iien en1 F# F#&i#n #ne = =! A4,< ,<< DL DLH 4,< 4,<< << DL DLH L#+o& R# R#te F#&i#ne A A=!.5< =! 4,<< DL DLH P#1&o A=!.5< 4,<< DLH
5,5<<
8#to&1 O2e&/e#$ Cont&o
5,5<<
F#&ious C&e$its
5,5<<
%er*ead at &00 %er*ead at 0 /"urs at &00 /"urs at 0
=
$20,000 $250,000 5,000 4,000
= $30 per *"ur %aria le "%er*ead
,4< ,4<< ,!<<
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
o&7 in P&oess
4!
4,<<< ;,<<<
8#to&1 O2e&/e#$ F#&i#+e E00iien1 F#&i#ne 8#to&1 O2e&/e#$ Fou-e F#&i#ne
;,<<< "
8#to&1 O2e&/e#$ Cont&o
5,5<< ",5<< !
8#to&1 O2e&/e#$ S(en$in F#&i#ne 'tu# 0#to&1 o2e&/e#$
=
5,5<<
Bu$et #o:#ne +#se$ on #tu# /ou&s3 8ie$ e(ense
=
!"<,<<< !
F#&i#+e e(ense A4,<< /ou&s ="<
!;,<<<
8#to&1 o2e&/e#$ s(en$in 2#&i#ne
5;,<<<
=
A",5<<
=
5;,<<<
0#2.
!
=5<,<<< ="< A4,<<< =!"<,<<< 0ie$ o2e&/e#$
Bu$et #o:#ne +#se$ on #tu# /ou&s Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$3
F#&i#+e o2e&/e#$ A4,<<< ="<
=
!<,<<<
8ie$ o2e&/e#$ A=5<,<<< =!<,<<<
!"<,<<<
F#&i#+e e00iien1 2#&i#ne "
=
5<,<<< ;,<<<
Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$
un0#2. =
5<,<<< St#n$#&$ 0#to&1 o2e&/e#$ /#&e$ to (&o$ution A=5; 4,<<< Fou-e 2#&i#ne
4,<<< =
; ;,<<<
un0#2.
PROBLEM ". M#te&i#s, L#+o&, #n$ #n$ O2e&/e#$ F#&i#ne 'n#1ses. 'n#1ses. TPCO Co&(. Co&(. -#nu0#tu&es
4
C/#(te& !9
/#ne#+e t1(e/e#$s 0o& 0o& use on (o&t#+e (o&t#+e t1(e:&ite&s. E#/ t1(e/e#$ is in # set onsistin o0 t/e e#$ #o1 t1(e/e#$ itse0, # o2e& 0o& t/e 7e1 on t/e t1(e:&ite& 7e1+o#&$, #n$ # (#sti +o to /o$ t/e t:o ite-s. 't t/e +einnin #n$ en$ o0 June, t/e&e :e&e no -#te&i#s in2ento&ies. T/e 0oo:in st#n$#&$s :e&e :e&e $e2eo(e$ 0o& 0o& e#/ unit3 Ite-
St#n$#&$ (e (e& Un Unit
M#te&i#s3 Le#$ #o1 A" o. =.
=
.;;
Co2e& -#te&i#s A; o. =.<4
.4
Cont#ine& +oes A! =.!<
.!<
Di&et #+o& A!4 /&. =! (e& /&.
".<<
O2e&/e#$ A=!< (e& $i&et #+o& /ou&
. 5<
Tot# ost
=
;. 5<
'nnu# (&o$ution is esti-#te$ #t 5<,<<< units, :it/ 0ie$ o2e&/e#$ o0 =5,<<<. Du&in t/e (#st 1e#&, t/e 0oo:in osts :e&e inu&&e$ to (&o$ue 4<,<<< units3 M#te&i#s3 Le#$ #o13 !,<<< o. =.< Co2e& -#te&i#s3 "5,<<< o. =.<4 Cont#ine& +oes3 4<,5<< =.<9 Di&et #+o&3 9,5<< /&s. =!.5< O2e&/e#$3 =9<,<<<
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
4"
Re6ui&e$3 Co-(ute t/e 2#&i#nes 2#&i#nes 0o& e#/ -#te&i#s #n$ #+o& #+o& ite-, &eo&$in t/e
-#te&i#s (&ie 2#&i#ne 2#&i#ne #t t/e ti-e ti-e o0 us#e. S/o: t/e o2e&/e#$ o2e&/e#$ 2#&i#nes usin t/e t:o2#&i#ne -et/o$. AIn$i#te :/et/e& e#/ 2#&i#ne is 0#2o&#+e o& un0#2o&#+e. un0#2o&#+e.
SOLUTION M#te&i#s F#&i#nes Le#$ #o13 'tu# A!,<<< o. =.<
=
4,4<<
'tu# us#e #t st#n$#&$ ost A!,<<< o. =. P&ie 2#&i#ne
=
A,44<
'tu# us#e #t st#n$#&$ ost
=
;,%4<
0#2. ;,%4<
St#n$#&$ us#e #t st#n$#&$ ost A" o. (e& unit 4<,<<< units =.
;,4<<
Qu#ntit1 2#&i#ne
=
44<
un0#2.
=
9,4<<
Co2e& -#te&i#s3 'tu# A"5,<<< o. =.<4 'tu# us#e #t st#n$#&$ ost As#-e P&ie 2#&i#ne
9,4<<
=
<
'tu# us#e #t st#n$#&$ ost
=
9,4<<
St#n$#&$ us#e #t st#n$#&$ ost A; o. (e& unit 4<,<<< units =.<4
9,;<<
Qu#ntit1 2#&i#ne
=
A<< 0#2.
Cont#ine& +oes3 'tu# A4<,5<< =.<9
=
",;45
44
C/#(te& !9
'tu# us#e #t st#n$#&$ ost A4<,5<< =.!< P&ie 2#&i#ne
=
A4<5
'tu# us#e #t st#n$#&$ ost
=
4,<5< 0#2. 4,<5<
St#n$#&$ us#e #t st#n$#&$ ost A4<,<<< =.!< Qu#ntit1 2#&i#ne
=
4,<<<
5<
un0#2.
=
!!%,)5<
L#+o& F#&i#nes 'tu# A9,5<< /&s. =!.5<
'tu# /ou&s #t st#n$#&$ &#te A9,5<< /&s. =!.<< L#+o& &#te 2#&i#ne
=
4,)5<
'tu# /ou&s #t st#n$#&$ &#te
=
!!4,<<<
un0#2. !!4,<<<
St#n$#&$ /ou&s #t st#n$#&$ &#te A!4 /&. (e& unit 4<,<<< units =!.<< L#+o& e00iien1 2#&i#ne
!<,<<< =
A;,<<<
0#2.
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
45
O2e&/e#$ F#&i#nes 'tu# o2e&/e#$
=
9<,<<<
Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$3 8ie$ o2e&/e#$
=5,<<<
F#&i#+e o2e&/e#$ A=.5< (e& unit 5<,<<< units =5,<<< %<
%<,<<<
Cont&o#+e 2#&i#ne
=
Bu$et #o:#ne
=
!<5,<<< A!5,<<<
0#2.
!<5,<<<
St#n$#&$ ost /#&e$ in A4<,<<< units !4 /&. (e& unit =!<
!<<,<<<
Fou-e 2#&i#ne
=
5,<<<
un0#2.
PROBLEM 4. 'o#tion o0 F#&i#nes to In2ento&1 #n$ Cost o0 Goo$s Goo$s So$. T/e -#n#e-ent o0 P#o P&o$uts :#s (&esente$ :it/ t/e 0oo:in $ist&i+ution o0 -#te&i#s, #+o&, #n$ o2e&/e#$ osts in in2ento&ies #n$ ost o0 oo$s so$3 M#te&i#s
Di&et L# L#+o& O2e&/e#$
Costs
Costs
M#te&i#sCen$in in2ento&1
Costs =
!<<,<<<
o&7 in (&oess Cen$in in2ento&1
!5<,<<<
=
5<,<<<
=
!5<,<<< 8inis/e$ oo$s Cen$in in2ento&1
5<,<<<
5<,<<<
!5<,<<< Cost o0 oo$s so$ =
!,!< !,!<<, <,<< <<< <
%<<,<<< =
,5< ,5<< <,<<< ,<<<
=
,<<<,<<< !,5< !,5<<, <,<< <<< <
!,<<,<<<
4;
C/#(te& !9
Du&in t/e 1e#&, t/e 0oo:in 2#&i#nes :e&e note$3 M#te&i#s (&ie us#e M#te&i#s 6u#ntit1 L#+o& &#te L#+o& e00iien1 Net o2e&/e#$
=A!<,<<< ,%<
A),<<<
un0#2o&#+e
0#2o&#+e
",<<< "!,5<<
0#2o&#+e
un0#2o&#+e
un0#2o&#+e
Re6ui&e$3
A! A!
'o 'o# #te te t/e t/e 2#& 2#&i# i#n nes es to to in2e in2ent nto& o&ie iess #n$ #n$ ost ost o0 o0 oo$ oo$ss so$ so$..
A
Dete&Dete&-ine ine t/e ost ost o0 oo$s oo$s so$ so$ #0te& #0te& t/e #o# #o#tion tion o0 2#&i#n 2#&i#nes es..
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
4)
SOLUTION A! M#te&i#s (&ie us#e 2#&i#ne to3 =!5<,<<< o&7 in (&oess A!,5<<
=
A!<,<<<
=
A!<,<<<
=
A!<,<<<
0#2.
=!,<<<,<<< =5<,<<< 8inis/e$ oo$s A5<<
0#2.
=!,<<<,<<< =%<<,<<< Cost o0 oo$s so$ A%,<<<
0#2.
=!,<<<,<<< Tot#
=
A!<,<<<
0#2.
M#te&i#s 6u#ntit1 2#&i#ne to3 =!5<,<<< o&7 in (&oess ","4
=
,%<
=
,%<
un0#2.
=!,<<<,<<< =5<,<<< 8inis/e$ oo$s !,!!4 un0#2.
=
4%
C/#(te& !9
=!,<<<,<<< =%<<,<<< Cost o0 oo$s so$
!),%4
=
,%<
un0#2.
=!,<<<,<<< Tot#
=
,%<
un0#2.
L#+o& 2#&i#nes to3 =5<,<<< o&7 in (&oess A4<<
=
A4,<<<
=
0#2.
=,5<<,<<< 8inis/e$ oo$s As#-e #s to :o&7 in (&oess A4<<
0#2.
=,<<<,<<< Cost o0 oo$s so$ A",<<
=
A4,<<<
0#2.
=,5<<,<<< Tot#
!
A4,<<<!
=
L#+o& &#te 2#&i#ne
L#+o& e00iien1 2#&i#ne
0#2.
2#&i#ne A=),<<< 0#2.
=",<<< un0#2.
A=4,<<< 0#2.
Net #+o&
St#n$#&$ Costin3 In I no&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
49
O2e&/e#$ 2#&i#nes to3 =!5<,<<< o&7 in (&oess
=
"!,5<<
=
"!,5<<
=
"!,5<<
=
"!,5<<
",!5 ",!5< < un0# n0#2. =!,5<<,<<< =!5<,<<< 8inis/e$ oo$s ",!5 ",!5< < un0# n0#2. =!,5<<,<<< =!,<<,<<< Cost o0 oo$s so$
5 5,<<
un0#2.
=!,5<<,<<< Tot# A St#n$#&$ ost o0 oo$s so$3 M#te&i#s
=
L#+o&
,<<<,<<<
O2e&/e#$ =
%<<,<<< !,<<,<<<
4,<<<,<<<
'$$ un0#2o&#+e 2#&i#nes3 M#te&i#s 6u#ntit1 O2e&/e#$
!),%4 5,<<
Less 0#2o&#+e 2#&i#nes3 M#te&i#s (&ie us#e L#+o&
A%,<<< A",<<
Cost o0 oo$s so$ #0te& #o#tion
=
4,<"!,%4
un0#2.
=
5<
C/#(te& !9
T/e 0oo:in (&o+e-s #&e +#se$ on -#te&i# in t/e '((en$iG to t/e /#(te&.
PROBLEM 5. Jou&n# Ent&ies 0o& 8#to&1 8#to&1 O2e&/e#$? 'te&n#te T/&eeF#&i#ne Met/o$. T/e (&#ti# #(#it1 o0 Min$1 M#nu0#tu&in Co-(#n1 Co-(#n1 is !<,<<< units o0 (&o$ut Mo&7. 't t/e no&-# #(#it1 e2e A%< o0 (&#ti#, t/e 0oo:in 0#to&1 #-ounts /#2e +een +u$ete$3 8ie$
=),<<<
F#&i#+e
=9,<<<
St#n$#&$s :e&e set #s 0oo:s3 P&oessin ti-e, /ou&s (e& unit o0 Mo&7 8#to&1 o2e&/e#$, =".5< (e& /ou& o0 (&oessin 'tu# $#t# 0o& No2e-+e& :e&e3 P&o$ution, ),;<< units o0 Mo&7 P&oessin ti-e, !5,4<< 8#to&1 o2e&/e#$, =55,5<<
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
5!
Re6ui&e$3 'ssu-in t/#t #tu# #tu# #n$ #((ie$ o2e&/e#$ #&e &eo&$e$ in in se(#&#te #ounts, #ounts,
i2e t/e ene&# *ou&n# ent&ies to &eo&$ #tu# o2e&/e#$, to /#&e o2e&/e#$ to (&o$ution, to ose t/e t:o o2e&/e#$ #ounts, #n$ to &eo&$ t/e o2e&/e#$ 2#&i#nes usin t/e #te&n#ti2e t/&ee2#&i#ne -et/o$.
SOLUTION 8#to&1 O2e&/e#$ Cont&o
55,5<<.<<
F#&ious C&e$its
55,5<<.<<
o&7 in P&oess A=".5< 8.O. &#te ),;<< units SH (e& unit '((ie$ 8#to&1 O2e&/e#$ '((ie$ 8# 8#to&1 O2 O2e&/e#$
5",<<.<<
5",<<.<< 5",<<.<<
E00i 0iien1 F#&i#ne ne =".5< 8.O 8.O. &#te A!5,4< ,4<< 'H !5,< ,<< SH
)<<.<< .<<
I$e C#(#it1 F#&i#ne =!.;%)5 0i. &#te A!;,<<< BH !5,4<< 'H S(en$in F#&i#ne
!,
8#to&1 O2e&/e#$ Cont&o
55,5<<.<<
PROBLEM ;. Jou&n# Ent&ies 0o& 8#to&1 8#to&1 O2e&/e#$? 8ou&F#&i#ne Met/o$. Me2in Co&(o&#tion /#&es 0#to&1 o2e&/e#$ to (&o$ution on t/e +#sis o0 t/e st#n$#&$ (&oessin ti-e #o:e$ 0o& #tu# (&o$ution. T/e 0oo:in $#t# &e#te &e#te to t/e &esuts &esuts o0 o(e&#tions 0o& 0o& Dee-+e&3 No&-# #(#it1 in (&oessin /ou&s
5,<<<
St#n$#&$ (&oessin /ou&s #o:e$ 0o& #tu# (&o$ution
4,;<<
5
C/#(te& !9
'tu# (&oessin /ou&s &e6ui&e$ $u&in Dee-+e&
5,<<
T/e 0#to&1 o2e&/e#$ &#te (e& /ou& o0 (&oessin +#se$ on no&-# #(#it1 0oo:s3 F#&i#+e o2e&/e#$
=
45,<<<
8ie$ o2e&/e#$ Tot# 0#to&1 o2e&/e#$
!55,<<< =
5, 5,<<< /ou&s
<<,<<<
=
9
5,<<< /ou&s
5,<<< /ou&s
"! =
4<
'tu# 0#to&1 o2e&/e#$ inu&&e$ $u&in Dee-+e& tot#e$ =!99,<<<. Re6ui&e$3 Gi2e t/e #((&o(&i#te #((&o(&i#te ene&# *ou&n# ent&ies to &eo&$ t/e #tu# o2e&/e#$ ost, ost,
to &eo&$ t/e /#&e to (&o$ution 0o& o2e&/e#$ A#ssu-in t/#t #tu# #n$ #((ie$ o2e&/e#$ #&e &eo&$e$ in se(#&#te #ounts, #n$ t/e osin o0 t/e t:o o2e&/e#$ #ounts #on :it/ t/e #((&o(&i#te o2e&/e#$ 2#&i#nes usin t/e 0ou&2#&i#ne -et/o$.
St#n$#&$ Costin3 Ino&(o&#tin St#n$#&$s into t/e 'ountin Reo&$s
5!
SOLUTION 8#to&1 O2e&/e#$ Cont&o
!99,<<<
F#&ious C&e$its
!99,<<<
o&7 in P&oess A=4< 8.O. &#te 4,;<< SH '((ie$ 8#to&1 O2e&/e#$ '((ie$ 8#to&1 O2e&/e#$
!%4,<<<
!%4,<<< !%4,<<<
F#&i#+e E0 E00iien1 F#&i#ne =9 2#&. A5,<< 'H 'H 4, 4,;<< SH SH 8ie 8ie$ $ E00 E00i iiien1 en1 F#&i #&i#ne #ne ="! ="! 0i0i. A5, A5, << 'H 4,; 4,;<< SH H S(en$in F#&i#ne
!%,; !%,;<< <<
, % <<
I$e C#(#it1 F#&i#ne ="! 0i. A5,<<< BH 5,<< 'H 8#to&1 O2e&/e#$ Cont&o
5, 4 <<
;, <<
!99,<<<
ST'ND'RD COSTING3 SETTING ST'ND'RDS 'ND 'N'LING F'RI'NCES
MULTIPLE CHOICE
Question Nos. !!!;, !%, !9, !, , ;%, "!, "5, #n$ "; #&e 'ICP' #$#(te$. Question Nos. "5 #n$ "< #&e ICM' #$#(te$. Question Nos. !), <, 9, ""4, " "4, #n$ ") #&e CI' #$#(te$. D
!.
T/e t1 t1(e o0 o0 st st#n$#&$ t/ t/#t is is in inten ten$e$ to to &e &e(&esent / /#enin 1e 1et #t #tt#in#+e
&esuts is3
5!
5
'
C
C/#(te& !9
.
".
'.
t/eo&eti# st#n$#&$
B.
0ei+e +u$et st#n$#&$
C.
ont&o#+e ost st#n$#&$
D.
no&-# st#n$#&$
E.
e(ete$ #tu# st#n$#&$
St#n$#&$ osts #&e use$ 0o& # o0 t/e 0oo:in eGe(t3 '.
ino-e $ete&-in#tion
B.
ont&oin osts
C.
-e#su&in e00iienies
D.
0o&-in # +#sis 0o& (&ie settin tin
E.
est#+is/in +u$ets
O0 t/e 0oo:in 2# 2#&i#n i#nes, t/ t/e one t/#t is is -ost use0u in #s #ssessin t/ t/e
(e&0o&-#ne o0 t/e Pu&/#sin De(#&t-ent is t/e3
B
4.
'.
i$e #(#it1 2#&i#ne
B.
o2e&/e#$ (&ie 2#&i#ne
C.
-#te&i#s (u (u&/#se (& (&ie 2# 2#&i#n #ne
D.
#+o& &#te 2#&i#ne
E.
-#te&i#s (& (&ie us us#e 2# 2#&i#ne
T/e #+o& e00iien1 2#&i#ne is o-(ute$ #s3 '.
t/e t/e $i0 $i00e 0e&e &en ne e +et +et:e :een en st#n st#n$# $#&$ &$ #n$ #n$ #t #tu# u# &#t &#tes es,, -ut -uti( i(ie ie$ $ +1 +1
st#n$#&$ /ou&s B.
t/e t/e $i0 $i00e 0e&e &en ne e +et +et:e :een en st#n st#n$# $#&$ &$ #n$ #n$ #t #tu# u# /ou /ou&s &s,, -u -uti ti(i (ie$ e$ +1 +1
C.
t/e t/e $i00e $i00e&e &en ne e +et: +et:ee een n st#n st#n$# $#&$ &$ #n$ #n$ #t #tu# u# &#te &#tes, s, -u -uti ti(i (ie$ e$ +1 +1 #tu #tu# #
D.
t/e t/e $i00e $i00e&e &en ne e +et: +et:ee een n st# st#n$ n$#& #&$ $ #n$ #n$ #tu #tu# # /ou /ou&s &s,, -ut -uti( i(iie$ e$ +1 +1 t/e t/e
st#n$#&$ &#te /ou&s $i00e&ene +et:een st#n$#&$ #n$ #tu# &#tes E.
# (e& (e&en ent# t# e o0 t/e #+o #+o&& ti-e ti-e 2#&i 2#&i#n #ne e
5
B
5.
T/e -et/o$ use$ to #ssu&e 0#i&ness in t/e &#tes (#i$ 0o& e#/ o(e&#tion
(e&0o&-e$ +1 #n e-(o1ee is3
D
;.
'.
*o+ ostin
B.
*o+ &#tin
C.
union o ont&#tin
D.
t/e t/e #& #&ee ee$ $u( u(on on :#e :#ess #t #t t/e t/e ti-e ti-e o0 e-( e-(o1 o1-e -ent nt
E.
#+o& &#te 2#&i#ne #n#1sis
M#te&i#s #n #n$ # #+o& o ost st st#n$#&$s #& #&e e ene +# +#se$ on on3 '.
e(e e(et te$ e$ #t #tu# u# on$ on$it itio ions ns,, #nti #ntii( i(#t #te$ e$ (&i (&ie es, s, #n$ #n$ $esi $esi&e &e$ $ e00i e00ii ien en1 1
B.
t/eo t/eo&e &eti ti# # on$ on$it itio ions ns,, (&es (&esen entt (&i (&ie e e2e e2es s,, #n$ #n$ $esi $esi&e &e$ $ e00i e00ii ien en1 1
C.
#(# #(#i it1 t1 on on$i $iti tion ons, s, #nti #ntii i(# (#te te$ $ (&i (&ies es,, #n$ #n$ $esi $esi&e$ &e$ e00 e00i iie ien n11 e2e e2es s
D.
no&no&-# # on on$i $iti tion ons, s, (&e (&ese sent nt (&i (&ie e e2 e2e es, s, #n$ #n$ $es $esi& i&e$ e$ e00 e00i iie ien n11 e2e e2es s
E.
t/eo t/eo&e &eti ti# # on$i on$iti tion ons, s, #nti #ntii i(# (#te te$ $ (&ie (&ies, s, #n$ #n$ t/eo& t/eo&et eti i# #11 #tt#i #tt#in# n#+ +e e
e2es e2es
e00iien1 e2es D
).
T/e -o -ost e0 e00eti2e st st#n$#&$s &$s #& #&e se set 0o 0oo:in :in # #&e0u st stu$1 o0 o0 (&o (&o$ $uts
#n$ o(e&#tin on$itions +1 t/e3 '.
'o 'oun unti tin n De(# De(#&t &t-e -ent nt,, en ent& t&# # -#n# -#n#e e-e -ent nt,, #n$ #n$ t/e t/e In$ In$us ust& t&i# i#
Eninee&in De(#&t-ent B.
ent ent&# &# -#n# -#n#e e-e -ent nt #n$ #n$ t/e t/e e-( e-(o1 o1ee eess :/o :/ose se (e&0 (e&0o& o&-# -#n ne e is is +ei +ein n
C.
'o 'oun unti tin n De(# De(#&t &t-e -ent nt #n$ #n$ eni enine nee& e&in in st#0 st#00 0
D.
In$u In$ust st&i &i# # Eni Enine nee& e&in in De( De(#& #&tt-en entt #n$ #n$ t/e t/e e-( e-(o1 o1ee eess :/o :/ose se
e2#u#te$
(e&0o&-#ne is +ein e2#u#te$ E. E
%.
ent ent&# &# -#n# -#n#e e-e -ent nt #n$ #n$ t/e t/e In$u In$ust st&i &i# # Eni Enine nee& e&in in De( De(#& #&tt-en entt
In #n#1in in 0#to&1 o2e&/e#$ 2#&i#nes, t/e 2ou-e 2#&i#ne is t/e
$i00e&ene +et:een t/e3
'.
#tu #tu# # #-o #-oun untt s(e s(ent nt 0o& 0o& o2e& o2e&/e /e#$ #$ iteite-ss $u& $u&in in t/e t/e (e&i (e&io$ o$ #n$ #n$ t/e t/e
#-ount #((ie$ $u&in t/e (e&io$ B.
2#&i 2#&i#+ #+e e e00i e00ii ien en1 1 2#&i 2#&i#n #ne e #n$ #n$ 0ie 0ie$ $ e00i e00ii ien en1 1 2#&i# 2#&i#n ne e
C.
#-ou #-ount nt s/o: s/o:n n in in t/e t/e 0e 0ei+ i+e e +u$ +u$e ett #n$ #n$ t/e t/e #-o #-oun untt s/o s/o:n :n in t/e t/e
D.
-#st -#ste& e& +u$ +u$et et #(( #((ii# #ti tion on &#t &#te e #n$ #n$ t/e t/e 0e 0ei i+ +e e +u$ +u$et et #(( #((ii# #tio tion n
-#ste& +u$et &#te, -uti(ie$ +1 #tu# /ou&s :o&7e$ E.
+u$ +u$et et #o #o:# :#n ne e + +#s #se$ e$ on st#n st#n$# $#&$ &$ /ou& /ou&ss #o #o:e :e$ $ 0o& 0o& #tu #tu# #
(&o$ution 0o& t/e (e&io$ #n$ t/e #-ount o0 #((ie$ 0#to&1 o2e&/e#$ $u&in t/e (e&io$ D
9.
T/e 2#&i#ne &esutin 0& 0&o- o+t#inin #n #n out(ut $i $i00e& 0e&ent 0&o- t/e one
e(ete$ on t/e +#sis o0 in(ut is t/e3
'
!<. !<.
'.
-i 2#&i#ne
B.
out(ut 2#&i#ne
C.
us#e 2#&i#ne
D.
1ie$ 2#&i#ne
E.
e00iien1 2# 2#&i#ne
In its its &e(o& e(o&ts ts to -#n# #n#ee-ent, ent, # oo-(#n (#n1 $is $iso osse$ t/e t/e (&ese &esen ne e o0 # 0ie 0ie$ $
e00iien1 2#&i#ne. T/e (&oe$u&e (&oe$u&e use$ to #n#1e 2#&i#nes :#s t/e3 '.
0ou&2#&i#ne -et/o$
B.
-i #n #n$ 1i 1ie$ 2# 2#&i#nes -e -et/o$
C.
t:o2#&i#ne -et/o$
D.
#te&n#ti2 ti2e t/& t/&ee2# 2#&i#ne ne -et -et/o$
E.
t/&ee2#&i#ne -e -et/o$
D
'
!!.
!.
' (u&(ose o0 st#n$#&$ ostin is to3 '.
#o#te ost :it/ -o&e #u
B.
eiei-in in#t #te e t/e t/e nee$ nee$ 0o& 0o& su+ su+*e *et ti2 i2e e $ei $eisi sion onss +1 -#n -#n# #ee-en entt
C.
$ete $ete&&-in ine e t/e t/e +&e +&e#7 #7e e2e 2en n (&o$ (&o$u uti tion on e2e e2e
D.
ont&o osts
E.
# o0 t/e #+o2e
/i/ one o0 t/e 0o oo:in is t&ue one&nin st#n$#&$ osts@ '.
I0 (&o (&o(e (e& &11 use$ use$,, st#n st#n$# $#&$ &$ss #n #n /e( /e( -ot -oti2 i2#t #te e e-( e-(o1 o1ee ees. s.
B.
Un0# Un0#2o 2o&# &#+ +e e 2#&i 2#&i#n #ne es, s, -#t -#te& e&i# i# in #-ou #-ount nt,, s/ou s/ou$ $ +e +e in2 in2es esti ti# #te te$, $,
+ut #&e 0#2o&#+e 2#&i#nes nee$ not +e in2esti#te$. C.
St#n St#n$# $#&$ &$ os osts ts #&e #&e $i0 $i00i 0iu ut t to to use use :it :it/ / # (&o (&oe ess ss os osti tin n s1s s1ste te-. -.
D.
St#n St#n$# $#&$ &$ os osts ts #&e #&e est estii-#t #tes es o0 o0 ost ostss #tt# #tt#in in#+ #+e e on on11 un$e un$e&& t/e t/e -ost -ost
i$e# on$itions, +ut &#&e1 (&#ti#+e. E. '
!".
' o0 t/e #+o2e
/en o-(utin 2#&i#nes 0& 0&o- st st#n$#&$ o osts, t/ t/e $i $i00e&ene +e +et:een
#tu# #n$ st#n$#&$ (&ie -uti(ie$ +1 #tu# 6u#ntit1 1ie$s #3
E
!4. !4.
'.
(&ie 2#&i#ne
B.
2ou-e 2#&i#ne
C.
-i 2#&i#ne
D.
1ie$ 2#&i#ne
E.
o-+ine ine$ (& (&ie6u 6u#ntit1 it1 2# 2#&i# &i#ne
' o-( o-(#n1 #n1 ont ont&o &os its its (&o$ (&o$u uttion ion ost osts +1 oo-(#&i (#&in n its its #tu #tu# # -ont -ont/ /11
(&o$ution osts :it/ :it/ t/e e(ete$ e2es. 'n1 sini0i#nt $e2i#tions 0&o0&o- e(ete$ e2es e2es #&e in2esti#te$ #n$ e2#u#te$ #s # +#sis +#sis 0o& o&&eti2e #tions. T/e 6u#ntit#ti2e te/ni6ue t/#t is -ost (&o+#+1 +ein use$ is3 '.
ti-e ti-es se e&ies &ies o& t&en t&en$ $ &e &e&ess &essiion #n# #n#1s 1sis is
B.
o&&e#tion #n#1sis
C.
$i00e&enti# # #uus
C
!5. !5.
D.
&is7 #n#1sis
E.
st#n$#& $#&$ ost 2#&i# &i#ne #n#1sis
/#t t1( t1(e o o00 $i& $i&e et -#te #te&i# &i# 2#&i# &i#nes nes 0o& (&i (&ie # #n n$ u us# s#e e :i :i #&is #&ise e i0i0 t/ t/e
#tu# nu-+e& o0 (oun$s o0 -#te&i#s use$ :#s ess t/#n st#n$#&$ (oun$s #o:e$ +ut #tu# ost eee$s st#n$#&$ ost@ Us# Us#e e P&i P&ie e
B
!;. !;.
'.
un0#2o&#+e
0#2o&#+e
B.
0#2o&#+e
0#2o&#+e
C.
0#2o&#+e
un0#2o&#+e
D.
un0#2o&#+e
un0#2o&#+e
E.
none none
I0 # oo-(#n (#n1 0o 0oo: o:ss # (&# &#tie tie o0 iso so#tin #tin 2# 2#&i# &i#nes nes #t t/e t/e e# e#&ie &iest st ti-e i-e,
t/e #((&o(&i#te ti-e to iso#te #n$ &eonie # $i&et -#te&i#s (&ie 2#&i#ne :ou$ +e :/en3 '.
t/e (u&/#se o&$e& is o&iin#te$
B.
-#te&i#s #&e (u&/#se$
C.
-#te&i#s #&e issue$
D.
t/e t/e -#te #te&i# &i#ss &e6u &e6uiisiti sition on is (&e( (&e(#& #&e$ e$
E.
-#te&i#s #&e use$ in (&o$ &o$ution
'
!). !).
/i/ /i/ o0 t/e t/e 0oo oo:i :in n :ou :ou$ $ e#s e#stt i7e i7e1 1 #use #use #n un0 un0#2o& #2o&#+ #+e e -#te #te&i# &i#s
6u#ntit1 Aus#e 2#&i#ne@
D
!%. !%.
'.
#+o #+o&& t/#t t/#t (os (osse sess sses es s7i s7iss e6u# e6u# to t/os t/ose e &e6u &e6ui& i&e$ e$ +1 +1 t/e t/e st# st#n$ n$#& #&$s $s
B.
s/e$uin o0 o0 su su+st#nti# o2 o2e&ti &ti-e
C.
# -i -i o0 $i&e $i&et t -#te -#te&i &i# #ss t/# t/#tt $oe $oess not not on0 on0o& o&- to to (# (#n n
D.
-#te -#te&i &i# #ss t/ t/#t $o not not -ee -eett s(e s(ei i0i 0i# #ti tion onss
E.
-#/ -#/in ine& e&11 t/#t t/#t /#s /#s not not +een +een -#in -#int# t#in ine$ e$ (&o(e &o(e& &11
In0o n0o&-#t &-#tio ion n #+o #+out ut S#& S#&en entt Co-( Co-(#n #n11>s $i&e $i&et -# -#te&i te&i# # ost ostss is #s 0o 0oo o:s3 :s3 St#n$#&$ unit (&ie
=".;<
'tu# 6u#ntit1 (u&/#se$
!,;<<
St#n$#&$ 6u#ntit1 #o:e$ 0o& #tu# (&o$ution
!,45<
M#te&i#s (u&/#se (&ie 2#&i#ne Cun0#2o&#+e
=4<
/#t :#s t/e #tu# (u&/#se (&ie (e& unit, &oun$e$ to t/e ne#&est (enn1@ '.
=".<;
B.
=".!!
C.
=".45
D.
=".)5
E.
=".;<
SUPPORTING C'LCUL'TION3 =4< !,;< ,;<< A G =".;< !,;<< G G
C
!9. !9.
=4< =5,);<
=".)5
Usin sin t/e t/e 0o 0oo o:i :in n s1-+ s1-+o os, s, :/i :/i/ / 0o& 0o&-u -u# # &e(& &e(&es esen entts t/e t/e #u #u# #ti tion on o0 t/e
#+o& &#te 2#&i#ne@
'H 'tu# /ou&s SH St#n$#&$ /ou&s #o:e$ 0o& #tu# (&o$ution 'R 'tu# &#te SR St#n$#&$ &#te
D
<. <.
'.
SRA'H SH
B.
'RA'H SH
C.
'HA'R SR
D.
SHA'R SR
E.
SHASR 'R
/en # /# /#ne ne in in t/ t/e -# -#nu0 nu0#tu #tu&i &in n (&oe &oess ss &e$u &e$ue ess t/e t/e nu-+ nu-+e e& o0 o0 $i& $i&e et
#+o& /ou&s #n$ st#n$#&$s #&e un/#ne$, t/e &esutin 2#&i#ne :i +e3 '.
#n un un0#2o&#+ &#+e e #+ #+o o& us us#e 2# 2#&i#ne
B.
#n un un0#2o&#+ &#+e e #+ #+o o& &# &#te 2# 2#&i#n i#ne
C.
# 0#2o&#+e #+o& +o& &#te 2#&i#n #ne
D.
# 0#2o&#+e # #+o& +o& us#e 2#&i#ne
E.
+ot/ AC #n$ AD #+o2e
B
!.
T/e -o -ost (& (&o+#+e &e &e#son # o-(#n1 :o :ou$ e e(e&ie &iene # 0#2o&#+e +e # #+o&
&#te 2#&i#ne #n$ #n un0#2o&#+e #+o& e00iien1 2#&i#ne is t/#t3 '.
t/e t/e -i -i o0 :o&7 :o&7e& e&ss #ssi #ssin ne$ e$ to t/e t/e (#& (#&ti tiu u# #&& *o+ *o+ :#s :#s /e# /e#2i 2i1 1
:ei/te$ to:#&$ t/e use o0 /i/e& (#i$, e(e&iene$ in$i2i$u#s B.
t/e t/e -i -i o0 :o&7 :o&7e& e&ss #ssi #ssin ne$ e$ to t/e t/e (#& (#&ti tiu u# #&& *o+ *o+ :#s :#s /e# /e#2i 2i1 1
:ei/te$ to:#&$ t/e use o0 ne:, &e#ti2e1 o:(#i$, uns7ie$ :o&7e&s C.
+e# +e#us use e o0 t/e t/e (&o$ (&o$u uti tion on s/ s/e$ e$u ue, e, :o& :o&7e 7e&s &s 0&o0&o- ot/e ot/e&& (&o (&o$u $ut tio ion n
#&e#s :e&e #ssine$ to #ssist in t/is (#&tiu#& (&oess D.
$e0e $e0et ti2 i2e e -#te -#te&i &i# #ss #us #use$ e$ -o& -o&e e #+ #+o& o& to to +e use$ use$ in in o&$e o&$e&& to to (&o$ (&o$u ue e
# st#n$#&$ unit E.
t/e t/e #tu #tu# # (&i (&ie e (#i (#i$ $ 0o& 0o& -#t -#te& e&i# i#s s t/# t/#tt :ent :ent int into o (&o (&o$u $ut tio ion n :#s :#s es esss
t/#n t/e st#n$#&$ (&ie t/#t :#s e(ete$ to +e (#i$ C
.
In0o&-#tion on on O& O&-#n Co Co-(#n1>s $i $i&e &et # #+o& o osts is is #s #s 0o 0oo:s3 St#n$#&$ $i&et #+o& &#te
=".)5
'tu# $i&et #+o& &#te
=".5<
St#n$#&$ $i&et #+o& /ou&s
!< , < < <
Di&et #+o& us#e Ae00iien1 2#&i#ne Cun0#2o&#+e 4,<< /#t :e&e t/e #tu# /ou&s :o&7e$, &oun$e$ to t/e ne#&est /ou&@ '.
!!,9!4
B.
!<,)!4
C.
!!,!<
D.
!!,<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 =4,<<
=".)5 AG !<,<<<
=
=".)5 G
!!,!<
G
D
". ".
=4,<< ="),5<<
E#/ #/ uni unitt o0 o0 P&o P&o$ $ut ut %in %in!! &e &e6ui 6ui&es &es t:o t:o $i&e $i&et #+ #+o& o& /ou&s ou&s.. E-( E-(o1ee o1ee +ene +ene0i 0itt
osts #&e t&e#te$ #s $i&et #+o& osts. D#t# on $i&et #+o& #&e #s 0oo:s3 Nu-+e& o0 $i&et e-(o1ees
5
ee71 (&o$uti2e /ou&s (e& e-(o1ee
"<
Esti-#te$ :ee71 :#es (e& e-(o1ee
=4<
E-(o1ee +ene0its A&e#te$ to :ee71 :#es T/e st#n$#&$ $i&et #+o& ost (e& unit o0 P&o$ut %in! is3 '.
=%.<<
B.
=!<.<<
C.
=!.<<
D.
=<.<<
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 $240 + .25(240) 30 2
= $20 / unit
5
B
4. 4.
J. R. R. Ri/ Ri/# #&$ Co-(# -(#n1 e-( e-(o o1s # st# st#n$#& n$#&$ $ #+s #+so&(t o&(tio ion n s1st s1stee- 0o& (&o$ (&o$u utt
ostin. T/e st#n$#&$ ost o0 its (&o$ut is #s 0oo:s3 Di&et -#te&i#s
=!4.5<
Di&et #+o& A $i&et #+o& /ou&s =%
!;.<<
M#nu0#tu&in o2e&/e#$ A $i&et #+o& /ou&s =!! Tot# st#n$#&$ ost
.<<
=5.5<
T/e -#nu0#tu&in o2e&/e#$ &#te is +#se$ u(on # no&-# #ti2it1 e2e o0 ;<<,<<< $i&et #+o& /ou&s. /ou&s. Ri/#&$ (#nne$ to (&o$ue 5,<<< units e#/ -ont/ -ont/ $u&in $u&in t/e 1e#&. T/e +u$ete$ #nnu# -#nu0#tu&in o2e&/e#$ is3 F#&i#+e 8ie$
=",;<<,<<< ",<<<,<<< =;,;<<,<<<
Du&in No2e-+e&, No2e-+e&, Ri/#&$ (&o$ue$ (&o$ue$ ;,<<< units. Ri/#&$ use$ use$ 5",5<< $i&et #+o& /ou&s in No2e-+e& No2e-+e& #t # ost ost o0 =4"","5<. 'tu# -#nu0#tu&in o2e&/e#$ 0o& t/e -ont/ :#s =5<,<<< 0ie$ #n$ ="5,<<< 2#&i#+e. T/e -#nu0#tu&in o2e&/e#$ ont&o#+e 2#&i#ne 0o& No2e-+e& is3 '.
=9,<<< un0#2o&#+e
B.
=!",<<< un un0#2o&#+e
C.
=9,<<< 0#2o&#+e
D.
=4,<<< 0#2o&#+e
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 'tu# 0#to&1 o2e&/e#$
=
5)5,<<<
Bu$et #o:#ne3 F#&i#+e 0#to&1 o2e&/e#$ A5,<<< =; Bu$ete$ 0ie$ o2e&/e#$ Cont&o#+e 2#&i#ne
5<,<<< =
!",<<<
="!,<<< 5;,<<< un0#2o&#+e
B
5. 5.
J. R. R. Ri/ Ri/# #&$ Co-(# -(#n1 e-( e-(o o1s # st# st#n$#& n$#&$ $ #+s #+so&(t o&(tio ion n s1st s1stee- 0o& (&o$ (&o$u utt
ostin. T/e st#n$#&$ ost o0 its (&o$ut is #s 0oo:s3 Di&et -#te&i#s
=!4.5<
Di&et #+o& A $i&et #+o& /ou&s =%
!;.<<
M#nu0#tu&in o2e&/e#$ A $i&et #+o& /ou&s =!! Tot# st#n$#&$ ost
.<<
=5.5<
T/e -#nu0#tu&in o2e&/e#$ &#te is +#se$ u(on # no&-# #ti2it1 e2e o0 ;<<,<<< $i&et #+o& /ou&s. /ou&s. Ri/#&$ (#nne$ to (&o$ue 5,<<< units e#/ -ont/ -ont/ $u&in $u&in t/e 1e#&. T/e +u$ete$ #nnu# -#nu0#tu&in o2e&/e#$ is3 F#&i#+e 8ie$
=",;<<,<<< ",<<<,<<<
=;,;<<,<<< Du&in No2e-+e&, No2e-+e&, Ri/#&$ (&o$ue$ (&o$ue$ ;,<<< units. Ri/#&$ use$ use$ 5",5<< $i&et #+o& /ou&s in No2e-+e& No2e-+e& #t # ost ost o0 =4"","5<. 'tu# -#nu0#tu&in o2e&/e#$ 0o& t/e -ont/ :#s =5<,<<< 0ie$ #n$ ="5,<<< 2#&i#+e. T/e -#nu0#tu&in o2e&/e#$ 2ou-e 2#&i#ne 0o& No2e-+e& is3 '.
=!,<<< un un0#2o&#+e
B.
=!<,<<< un un0#2o&#+e
C.
=",<<< un0#2o&#+e
D.
=9,<<< un0#2o&#+e
E.
=!,<<< 0# 0#2o&#+e
SUPPORTING C'LCUL'TION3 Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$
A5,<<< =; =5<,<<<
=
5;,<<<
8#to&1 o2e&/e#$ #((ie$ #t st#n$#&$ Fou-e 2#&i#ne C
;. ;.
=
A!<,<<<
5),<<< 0#2o&#+e
T/e T/ e 0o 0oo o:i :in n in0o in0o&&-#ti -#tion on &e# &e#te tess to to De De(#&t (#&t-ent ent ! o0 Rui Rui CoCo-( (#n1 #n1 0o 0o& t/e t/e
0ou&t/ 6u#&te&. T/e tot# o2e&/e#$ 2#&i#ne is $i2i$e$ into into t/&ee 2#&i#nes3 2#&i#nes3 s(en$in, 2#&i#+e e00iien1, #n$ 2ou-e. 'tu# tot# o2e&/e#$ A0ie$ (us 2#&i#+e Bu$et 0o&-u#
=!!<,<<<
Tot# o2e&/e#$ #((i#tion &#te 'tu# /ou&s :o&7e$
=!)%,5<< =.5< (e& /ou& =!.5< (e& /ou&
!!,<<<
/#t :#s t/e s(en$in 2#&i#ne in t/is $e(#&t-ent $u&in t/e 6u#&te&@ '.
=%,<<< 0# 0#2o&#+e
B.
=4,5<< 0# 0#2o&#+e
C.
=%,<<< un0#2o&#+e
D.
=4,5<< un0#2o&#+e
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 'tu# 0#to&1 o2e&/e#$
=
!)%,5<<
Bu$et #o:#ne3 F#&i#+e 0o& #tu# /ou&s A!!,<<< =.5< 8ie$
!!<,<<<
S(en$in 2#&i#ne '
). ).
= ;< ;<,5<< !)<,5<< =
%,<<< un0#2o&#+e
T/e T/ e 0o 0oo o:i :in n in0o in0o&&-#ti -#tion on &e# &e#te tess to to De De(#&t (#&t-ent ent ! o0 Rui Rui CoCo-( (#n1 #n1 0o 0o& t/e t/e
0ou&t/ 6u#&te&. T/e tot# o2e&/e#$ 2#&i#ne is $i2i$e$ into into t/&ee 2#&i#nes3 2#&i#nes3 s(en$in, 2#&i#+e e00iien1, #n$ 2ou-e. 'tu# tot# o2e&/e#$ A0ie$ (us 2#&i#+e Bu$et 0o&-u#
=!!<,<<<
Tot# o2e&/e#$ #((i#tion &#te 'tu# /ou&s :o&7e$
=!)%,5<< =.5< (e& /ou& =!.5< (e& /ou&
!!,<<<
St#n$#&$ /ou&s #o:e$ 0o& (&o$ution
!"<,<<<
/#t :#s t/e 2#&i#+e e00iien1 2#&i#ne in t/is $e(#&t-ent $u&in t/e 6u#&te&@ '.
=4,5<< 0# 0#2o&#+e
B.
=%,<<< 0# 0#2o&#+e
C.
=4,5<< un0#2o&#+e
D.
=%,<<< un0#2o&#+e
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 Bu$et #o:#ne 0o& #tu# /ou&s A!!,<<< =.5< =!!<,<<<
=
!)<,5<<
Bu$et #o:#ne 0o& st#n$#&$ /ou&s3 F#&i#+e A!"<,<<< =.5< 8ie$
!!<,<<<
F#&i#+e e00iien1 2#&i#ne E
%.
= ;5,<<< !)5,<<< =
A4,5<<
0#2o&#+e
Un$e& t/ t/e t: t:o2 o2#&i# &i#ne -e -et/o$ 0o 0o& #n #n#1in in 0# 0#to&1 o2 o2e&/e#$, t/ t/e
ont&o#+e A+u$et 2#&i#ne is t/e $i00e&ene +et:een t/e3 '.
#tu #tu# # 0ie 0ie$ $ 0# 0#to to&1 &1 o2e& o2e&/e /e#$ #$ #n$ #n$ t/e t/e +u$ +u$et ete$ e$ 0ie 0ie$ $ o2e o2e&/ &/e# e#$ $
B.
+u$ +u$et et #o #o:# :#n ne e +#s +#se$ e$ on st#n st#n$# $#&$ &$ /ou /ou&s &s #o #o:e :e$ $ #n$ #n$ t/e t/e 0# 0#to to&1 &1
o2e&/e#$ #((ie$ to (&o$ution C.
+u$ +u$et et #o #o:# :#n ne e +#s +#se$ e$ on st#n st#n$# $#&$ &$ /ou /ou&s &s #o #o:e :e$ $ #n$ #n$ t/e t/e +u$ +u$e ett
#o:#ne +#se$ on #tu# /ou&s :o&7e$ D.
#tu #tu# # 0#t 0#to& o&11 o2e o2e&/ &/e# e#$ $ #n$ #n$ t/e t/e 0# 0#to to&1 &1 o2e& o2e&/e /e#$ #$ #(( #((ie ie$ $ to to
E.
#tu #tu# # 0# 0#to to&1 &1 o2e& o2e&/e /e#$ #$ #n$ #n$ t/e t/e +u$ +u$et et #o #o:# :#n ne e +#s +#se$ e$ on on st# st#n$ n$#& #&$ $
(&o$ution /ou&s #o:e$ '
9.
M#te&i#s us#e 2#&i# &i#nes #&e no&-#1 /#&e#+e to t/e3 '.
P&o$ution De De(#&t-ent
B.
Pu&/#sin De De(#&t-ent
C.
8inis/e$ Goo$s De(#&t-ent
D.
M#te&i#s St Sto&#e De De(#&t-ent
E.
8#to&1 St Sto&e&oo- De De(#&t-ent
C
"<. "<.
To$ To $o o (#n (#nn ne$ to (&o (&o$u $ue ",<< ",<<< < unit unitss o0 its its sin sine e (&o$u &o$ut t,, Te Te&# &#& &# #-,
$u&in No2e-+e&. T/e st#n$#&$ s(ei0i#tions s(ei0i#tions 0o& one unit unit o0 Te&#&#- inu$e si (oun$s o0 -#te&i# -#te&i# #t =."< (e& (oun$. (oun$. 'tu# (&o$ution in No2e-+e& No2e-+e& :#s ",!<< units o0 Te&#&#-. T/e #ount#nt o-(ute$ o-(ute$ # 0#2o&#+e -#te&i#s (u&/#se (&ie 2#&i#ne o0 ="%< #n$ #n un0#2o&#+e un0#2o&#+e -#te&i#s 6u#ntit1 2#&i#ne o0 =!<. B#se$ on t/ese t/ese 2#&i#nes, one ou$ onu$e t/#t3
D
"!.
'.
-o&e -o&e -#te #te&i# &i#ss :e :e&e (u&/# &/#se se$ $ t/# t/#n n :e :e&e use$ use$
B.
-o&e -o&e -#te #te&i# &i#ss :e :e&e use$ se$ t/# t/#n n :e& :e&e e (u& (u&/ /#s #se$ e$
C.
t/e t/e #t #tu# u# os ostt o0 o0 -#t -#te& e&i# i#s s :#s :#s es esss t/# t/#n n t/e t/e st#n st#n$# $#&$ &$ ost ost
D.
t/e t/e #t #tu# u# us# us#e e o0 -#te -#te&i &i# #ss :#s :#s ess ess t/#n t/#n t/e t/e st# st#n$ n$#& #&$ $ # #o:e o:e$ $
E.
#tu #tu# # ost ost #n$ #n$ us# us#e e o0 -#te -#te&i &i# #ss :e& :e&e e +ot +ot/ / es esss t/# t/#n n st# st#n$ n$#& #&$ $
In0o&-#tion on on Du Du7e Co Co.>s $i $i&et -# -#te&i# osts 0o 0o& M# M#1 is is #s #s 0o 0oo:s3 'tu# 6u#ntit1 tit1 o0 $i& $i&et -#te&i#s (u&/ &/#se$ #n$ use$
"<,<<<
+s. 'tu# ost o0 $i&et -#te&i#s
=%4,<<<
Un0#2o&#+e $i&et -#te&i#s us#e 2#&i#ne
",<<<
St#n$#&$ 6u#ntit1 o0 $i&et -#te&i#s #o:e$ 0o& M#1 (&o$ution 9,<<<
+s.
8o& t/e -ont/ o0 M#1, Du7e>s $i&et -#te&i#s (&ie 2#&i#ne :#s3 '.
=,%<< 0# 0#2o&#+e
B.
=,%<< un0#2o&#+e
C.
=;,<<< un0#2o&#+e
D.
=;,<<< 0#2o&#+e
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3
=",<<<
G A"<,<<< A"<,<<< 9,<<<
!,<<< G
=",<<<
G
'
". ".
="
1
=.%< =".<
1
A=;,<<< 0#2o&#+e
' o-( o-(#n1 #n1 uses ses # st#n st#n$ $#&$ #&$ ost ost s1ste 1ste- to #o #oun untt 0o& 0o& its its on1 on1 (&o (&o$u $ut.
T/e -#te&i#s st#n$#&$ st#n$#&$ (e& unit :#s :#s 4 +s. #t =5.!< =5.!< (e& +. O(e&#tin $#t# 0o& '(&i :e&e #s 0oo:s3 M#te&i# use$
),%<< +s.
Cost o0 -#te&i# use$ Nu-+e& o0 0inis/e$ units (&o$ue$ T/e -#te&i# us#e 2#&i#ne 0o& '(&i :#s3 '.
=!,<< 0# 0#2o&#+e
B.
=!,<5< 0# 0#2o&#+e
C.
=!,!)< un0#2o&#+e
D.
=!,<< un0#2o&#+e
E.
none o0 t/e #+o2e
=4<,95< ,<<<
SUPPORTING C'LCUL'TION3 G =5.!< ),%<< A,<<< 4 G A=!,<< 0#2o&#+e
D
"". "".
Du&in &in t/e t/e #s #stt t/ t/&ee &ee -on -ontt/s, /s, # -#nu -#nu00#tu #tu&e &e&& in inu u&&e$ &&e$ #n un0# un0#2o 2o&# &#+ +e e #+ #+o o&
e00iien1 2#&i#ne. T/e e#st i7e1 #use o0 t/is 2#&i#ne is3 '.
su+s su+st# t#nt nti# i# -#te -#te&i &i# #ss :e&e :e&e (u& (u&/# /#se se$ $ #t # $is $iso oun untt #t # (&e2 (&e2io ious us1 1
unuse$ su((ie&>s i6ui$#tion B.
0o& 0o& one one :ee7 :ee7,, on on11 /# /#00 o0 o0 t/e t/e :o&7 :o&70o 0o& &e, e, t/os t/ose e :it :it/ / t/e t/e /i/ /i/es estt
senio&it1, :e&e #e$ in to :o&7 C.
# se seon on$ $ (&o (&o$u $ut tio ion n in ine e :it :it/ / # # ne: ne: (e& (e&so sonn nne e :#s :#s st# st#&t &te$ e$
D.
t/e t/e ost osto0 o0i i2i 2in n #$* #$*us ustt-en entt 0o& 0o& t/e t/e t/& t/&ee ee-o -ont nt/ / (e& (e&io io$ $ :#s :#s =.! =.!< <
-o&e (e& /ou& t/#n e(ete$ E. D
"4. "4.
none o0 t/e #+o2e
T/e T/ e $ $i& i&e ett #+ #+o o& st# st#n$ n$#& #&$s $s 0o& 0o& (&o (&o$u $ui in n # uni unit o0 o0 # (&o$u &o$ut t #&e #&e t:o t:o / /o ou&s u&s #t
=!< (e& (e& /ou&. Bu$ete$ (&o$ution (&o$ution :#s !,<<< units. 'tu# (&o$ution (&o$ution :#s 9<< units, units, #n$ $i&et #+o& ost :#s =!9,<<< 0o& ,<<< $i&et #+o& /ou&s. /ou&s. T/e $i&et #+o& e00iien1 2#&i#ne :#s3 '.
=!,<<< 0# 0#2o&#+e
B.
=!,<<< un0#2o&#+e
C.
=,<<< 0#2o&#+e
D.
=,<<< un0#2o&#+e
E.
none o0 t/e #+o2e
SUPPORTING C'LCUL'TION3 G =!< ,<<< A9<< G =,<<< un0#2o&#+e
C
"5. "5.
Un$e n$e& t/e t/e t:o2 :o2# #&i#n &i#ne -e -et/o$ t/o$ 0o& 0o& #n #n#1 #1in in 0# 0#to&1 to&1 o2e& o2e&/e /e#$ #$,, t/ t/e 0# 0#to to&1
o2e&/e#$ #((ie$ to (&o$ution is use$ in t/e o-(ut#tion o0 t/e3 Con Cont&o &o#+ #+e e
Fouou-e e
ABu$ ABu$e et t F#&i F#&i#n #ne e
D
";. ";.
'.
1es
no
B.
1es
1es
C.
no
1es
D.
no
no
F#&i F#&i#n #ne e
Un$e n$e& t/e t/e t/&e t/&ee e2# 2#&i &i#n #ne e -et/o t/o$ 0o& 0o& #n# #n#1 1in in 0# 0#tto&1 o&1 o2e o2e&/ &/e# e#$, $, :/i/ /i/ o0
t/e 0oo:in is use$ in o-(ut#tion o0 t/e s(en$in 2#&i#ne@ 'tu# 8# 8#to&1
Bu$et ' 'o:#ne
O2e&/e#$ O2e&/e#$
B#se$ on 'tu# Hou&s
'.
no
1es
B.
no
no
C.
1es
no
D.
1es
1es
D
"). ").
Co-(u -(ute t/e t/e 2#&i# &i#+e +e e00i e00ii ie en1 n1 2#&i 2#&i#n #ne, usin sin t/e 0o 0oo o:in :in $#t# $#t#33 St#n$#&$ #+o& /ou&s (e& oo$ unit (&o$ue$ Goo$ units (&o$ue$
!,<<<
'tu# #+o& /ou&s use$
,!<<
St#n$#&$ 2#&i#+e o2e&/e#$ (e& st#n$#&$ #+o& /ou& 'tu# 2#&i#+e o2e&/e#$ '.
=<< 0#2o&#+e
B.
=<< un0#2o&#+e
C.
="<< 0#2o&#+e
D.
="<< un0#2o&#+e
E.
none o0 t/e #+o2e
=
="
;, 5<<
SUPPORTING C'LCUL'TION3 F#&i#+e +u$et #o:#ne 0o& #tu# /ou&s A,!<< ="
=
;,"<< F#&i#+e +u$et #o:#ne 0o& st#n$#&$ /ou&s A=" !,<<< =
"<< "<<
;,<<<
un0 un0#2o& #2o&#+ #+e e
T/e 0oo:in 6uestions #&e +#se$ on -#te&i#s in t/e '((en$iG to t/e /#(te&.
'
"%.
In t/ t/e # #te&n# &n#te t/ t/&ee2# 2#&i#ne -e -et/o$, t/ t/e e0 e00i 0iien1 n1 2# 2#&i# &i#ne is is3 '.
St#n St#n$# $#&$ &$ 0# 0#to to&1 &1 o2e o2e&/ &/e# e#$ $ &#te &#te A' A'tu tu# # uni units ts o0 # #o o#ti #tion on +#s +#se e
St#n$#&$ units o0 #o#tion +#se #o:e$ B.
'tu 'tu# # 0# 0#to to&1 &1 o2e o2e&/ &/e# e#$ $ inu inu&& &&e$ e$ Bu$ Bu$et et # #o: o:#n #ne e +#s +#se$ e$ on on #t #tu# u#
C.
Bu$ Bu$et et #o #o:# :#n ne e +#s +#se$ e$ on #tu #tu# # /ou& /ou&ss A't A'tu# u# /ou /ou&s &s 8# 8#to to&1 &1
/ou&s
o2e&/e#$ &#te D.
Bu$ Bu$et ete$ e$ 0i 0ie$ e$ 0#t 0#to& o&11 o2e o2e&/ &/e# e#$ $ A't A'tu# u# /ou /ou&s &s 8i 8ie$ e$ o2e& o2e&/e /e#$ #$
E.
none o0 t/e #+o2e
&#te
D
"9.
T/e 0o 0ou&2# 2#&i#n #ne -e -et/o$ &e &eonies to to t/ t/e t: t:o2# 2#&i#n #ne -e -et/o$ +1 +1
o-+inin :/i/ o0 t/e 0oo:in to et t/e ont&o#+e 2#&i#ne@
B
4<.
'.
0ie 0ie$ $ e00 e00i iie ien n11 2#& 2#&i# i#n ne e #n$ #n$ i$e i$e #(# #(#i it1 t1 2#& 2#&i# i#n ne e
B.
s(en s(en$i $in n 2#&i 2#&i#n #ne e #n$ #n$ 0i 0ie$ e$ e00i e00ii ien en1 1 2#&i 2#&i#n #ne e
C.
s(en s(en$i $in n 2#&i 2#&i#n #ne e #n$ #n$ i$e i$e #(# #(#i it1 t1 2#&i 2#&i#n #ne e
D.
s(en s(en$i $in n 2#&i 2#&i#n #ne e #n$ #n$ 2#&i 2#&i#+ #+e e e00 e00i iie ien n11 2#& 2#&i# i#n ne e
E.
none o0 t/e #+o2e
T/e 0o 0ou&2# 2#&i#n #ne -e -et/o$ &e &eonies to to t/ t/e t: t:o2# 2#&i#n #ne -e -et/o$ +1 +1
o-+inin :/i/ o0 t/e 0oo:in to et t/e 2ou-e 2#&i#ne@ '.
s(en s(en$i $in n 2#&i 2#&i#n #ne e #n$ #n$ 2#&i 2#&i#+ #+e e e00 e00i iie ien n11 2#& 2#&i# i#n ne e
B.
0ie 0ie$ $ e00 e00i iie ien n11 2#& 2#&i# i#n ne e #n$ #n$ i$e i$e #(# #(#i it1 t1 2#& 2#&i# i#n ne e
C.
2#&i 2#&i#+ #+e e e00i e00ii ien en1 1 2#&i 2#&i#n #ne e #n$ #n$ 0i 0ie$ e$ e00i e00ii ien en1 1 2#&i# 2#&i#n ne e
D.
s(en s(en$i $in n 2#&i 2#&i#n #ne e #n$ #n$ i$e i$e #(# #(#i it1 t1 2#&i 2#&i#n #ne e
E.
none o0 t/e #+o2e
PROBLEMS
PROBLEM !. L#+o& F#&i#ne 'n#1sis. 'n#1sis. L#st N#tion# B#n7 B#n7 uses # st#n$#&$ st#n$#&$ ost #ountin #ountin s1ste- 0o& #n#1in its #+o& osts osts in its P&oo0 P&oo0 #n$ T&#nsit Di2ision. Di2ision. T/e (&i-#&1 t#s7 o0 t/is $i2ision is t/e eno$in o0 /e7s :it/ -#neti -#neti in7 0o& &e#$in +1 t/e o-(ute&. o-(ute&. T/e st#n$#&$ #s 0o& #n e-(o1ee to (&oess 9<< /e7s (e& /ou& #n$ to +e (#i$ =!< (e& /ou&. Du&in t/e ei/t/ou& ni/t s/i0t #st e$nes$#1, t/e (&o$ution e2es #tt#ine$ +1 t/e 0ou& e-(o1ees on t/#t s/i0t, toet/e& :it/ t/ei& /ou&1 :#es, :e&e3 E-(o1ee
C/e7s Eno$e$
ison
),<< =!!.<<
K#2ie&
;,4%< 9.5
e$in
),%)5 !< !<.5<
i#/in
),45 9. 9.)5
Hou&1 #es
Re6ui&e$3 Co-(ute t/e #+o& #+o& &#te 2#&i#ne #n$ #n$ t/e #+o& e00iien1 e00iien1 2#&i#ne 0o& e#/
e-(o1ee #n$ 0o& t/e enti&e ni/t s/i0t.
SOLUTION ison K# K#2ie& e$in 'tu# &#te
=
i#/in
Tot#
!!.<< =
9.5
St#n$#&$ &#te
!<.<<
!<.<<
R#te $i00e&ene
=
=
!<.5< =
9.)5
!<.<<
!<.<<
=
4<.5< 4 < .< <
!.<<
=
A.)5 =
.5<
=
A.5 =
%
%
.5< Muti(ie$ +1 /ou&s :o&7e$
%
%
%
L#+o& &#te 2#&i#ne
=
%.<< =
A;.<< =
4.<< =
un0#2. un0#2.
0#2. 0#2.
un0#2. un0#2.
%. <
%. <
%.<<
A.<< =
4.<< un0#2. un0#2.
0#2. 0#2.
'tu# /ou&s :o&7e$
%.<<
" St#n$#&$ /ou&s #o:e$
).%
).
%.)5
%.5
" Di00e&ene in /ou&s
.
.%
A.)5
A.5
< Muti(ie$ +1 st#n$#&$ &#te
=!<
=
.<< =
=!<
=!<
=!<
L#+o& e00iien1 2#&i#ne < un0#2. un0#2.
=!<
un0#2. un0#2.
0#2. 0#2.
0#2. 0#2.
%.<< =
A).5< =
A.5<
PROBLEM . M#te&i#s F#&i#ne 'n#1ses. 'n#1ses. He#t/1 Dinne&s In. (#7#es # 0&oen 0&oen 0is/ $inne& t/#t onsists o0 ; ounes o0 /#i+ut, 4 ounes o0 #s(#&#us, 5 ounes o0 &ie, #n$ " ounes o0 1ou&t. On Oto+e& !, t/e 0oo:in (&ie st#n$#&$s st#n$#&$s :e&e set 0o& e#/ +#t/ +#t/ o0 !,<<< $inne&s3 M#te&i#s Ite-
P&ie St St#n$#&$
H#i+ut
=.;<
's(#&#us
(e& oune .5
Rie
.!<
ou&t
.<
T/e #tu# ost 0o& !,<<< $inne&s :#s3 /#i+ut, =.)< (e& oune? #s(#&#us =.< (e& oune? &ie, =.! (e& oune? #n$ 1ou&t, =. (e& oune. Qu#ntit1 2#&i#nes #&ise #&ise 0&o- t/e oo7in (&oess. T/e -#te&i#s use$ use$ 0o& t/e !,<<< $inne&s in B#t/ !<99 :e&e3 H#i+ut
5,5<< ounes
's(#&#us
",%<<
Rie
4,9<<
ou&t
",!5<
Re6ui&e$3 Dete&-ine t/e -#te&i#s -#te&i#s (&ie us#e 2#&i#ne #n$ t/e -#te&i#s 6u#ntit1 Ao& Ao&
us#e 2#&i#ne 0o& B#t/ !<99. AIn$i#te :/et/e& e#/ e#/ 2#&i#ne is 0#2o&#+e 0#2o&#+e o& un0#2o&#+e.
SOLUTION A'tu# unit (&ie St#n$#&$ unit (&ie 'tu# us#e M#te&i#s (&ie us#e 2#&i#ne H#i+ut3 A=.)< (e& o. =.;< (e& o. 5,5<< o.
= 55 5 5<
's(#&#us3 A= A=.< (e (e& o o. =.5 (e (e& o o. ",%<< o o.
A!9< 0#2.
Rie3 A=.! (e& o. =.!< (e& o. 4,9<< o.
9%
un0#2.
ou&t3 A=. (e& o. =.< (e& o. ",!5< o. M#te&i#s (&ie us#e 2#&i#ne
;"
= 5!
un0#2.
un0#2.
un0#2.
A'tu# 6u#ntit1 St#n$#&$ 6u#ntit1 #o:e$ St#n$#&$ (&ie M#te&i#s 6u#ntit1 2#&i#ne H#i+ut3 A5,5<< o. ;,<<< o. =.;<
=A"<<
's(#&#us3 A",%<< o. 4,<<< o. =.5 Rie3 A4,9<< o. 5,<<< o. =.!<
A5< A!<
ou&t3 A",!5< o. ",<<< o. =.< M#te&i#s 6u#ntit1 2#&i#ne
=A""<
"< 0#2.
0#2. 0#2.
0#2. un0#2.
PROBLEM ". M#te&i#s Mi #n$ ie$ F#&i#ne 'n#1sis. 'n#1sis. &eute& C#n$e Co. Co. -#nu0#tu&es #n$es #n$es in 2#&ious s/#(es, sies, sies, oo&s, #n$ sents. De(en$in on t/e o&$e&s &eei2e$, not not # #n$es &e6ui&e t/e s#-e #-ount o0 o0 oo&, $1e, o& sent -#te&i#s. ie$s #so 2#&1, $e(en$in u(on t/e us#e us#e o0 +ees:# o& s1nt/eti :#. :#. St#n$#&$ in&e$ients 0o& 0o& !,<<< +s. o0 #n$es #&e3 St#n$#&$ Cost St#n$# St#n$#&$ &$ Mi
(e& Poun$ Poun$
In(ut3 Bees:#
<<
S1nt/eti :#
%4<
Coo&s
=!.<< . <
)
Sents Tot#s
+s. .<<
"
;.<<
!,<5< +s.
St#n$#&$ out(ut
!,<<< +s.
P&ie 2#&i#nes #&e #&e /#&e$ o00 #t t/e ti-e o0 (u&/#se. Du&in J#nu#&1, t/e o-(#n1 :#s +us1 -#nu0#tu&in -#nu0#tu&in &e$ #n$es #n$es 0o& F#entine>s D#1. 'tu# (&o$ution t/en t/en :#s3 In(ut3 Bees:#
4,!<<
S1nt/eti :#
!",%<<
Coo&s Sents Tot#s 'tu# out(ut
,<< ;< <,!;<
+s.
!%,5<<
+s.
Re6ui&e$3 Co-(ute t/e -#te&i#s -#te&i#s -i 2#&i#ne #n$ t/e -#te&i#s 1ie$ 2#&i#ne. 2#&i#ne. AIn$i#te
:/et/e& e#/ 2#&i#ne is 0#2o&#+e o& un0#2o&#+e #n$ &oun$ to t/&ee $ei-# (#es.
SOLUTION 'tu# 6u#ntities #t in$i2i$u# st#n$#&$ -#te&i#s ost
=
'tu# in(ut 6u#ntit1 #t :ei/te$ #2e&#e o0 st#n$#&$ -#te&i#s ost A<,!;< =."%! M#te&i#s -i 2#&i#ne
= =
),;%!
",9"9 un0#2.
'tu# in(ut 6u#ntit1 #t :ei/te$ #2e&#e o0 st#n$#&$ -#te&i#s ost A<,!;< =."%!
=
),;%!
'tu# out(ut 6u#ntit1 #t st#n$#&$ -#te&i#s ost (e& (oun$ o0 out(ut A!%,5<< +s. =.4< " M#te&i#s 1ie$ 2#&i#ne
=
) , 4 << %!
un0#2.
!!,;< !
!
Bees:#
4,!<< +s.
=! (e& +.
S1nt/eti :#
!",%<<
+s.
Coo&s
,<< + +s.
Sents
;< <,!;<
=
=.< (e& +.
= (e& +. +s.
,);<
4 , 4 <<
=; (e& +.
+s.
4,!<<
=
";< !!,;<
ei/te$ #2e&#e st#n$#&$ -#te&i#s osts3
Bees:#
<<
+s.
=!
S1nt/eti :#
%4<
+s.
=.<
+s.
=
!4
" + +s.
=;
!%
Coo&s
)
Sents !,<5< +s.
=
tandard materials c"st =
3
=
<< !;%
4<< $400 = $.3& per l . &,050 ls .
tandard materials c"sts $400 = = $.40 per l . c"st per unit " "utput tandard "utput &,000 ls .
PROBLEM 4. O2e&/e#$ F#&i#ne F#&i#ne 'n#1sis, Usin t/e T:oF#&i#ne Met/o$. Tu# P&o$uts P&o$uts Co. /#&es 0#to&1 o2e&/e#$ into (&o$ution #t t/e &#te o0 =!< (e& $i&et #+o& /ou&, +#se$ on # st#n$#&$ (&o$ution o0 !5,<<< $i&et #+o& /ou&s 0o& !5,<<< units? ;< o0 0#to&1 o2e&/e#$ osts osts #&e 2#&i#+e. 2#&i#+e. P&o$ution $#t# 0o& M#1 #n$ June #&e3 #&e3 M#1
June
P&o$ution
!,<<<
Units (&o$ue$ 'tu# 0#to&1 o2e&/e#$
/&s.
!4,<<
!,<<< =!4<,!<<
/&s.
!5,<<< =!49,"<<
Re6ui&e$3 P&e(#&e # 0#to&1 0#to&1 o2e&/e#$ 2#&i#ne 2#&i#ne #n#1sis 0o& M#1 M#1 #n$ June, usin usin t/e
t:o2#&i#ne -et/o$. AIn$i#te :/et/e& e#/ 2#&i#ne is 0#2o&#+e o& un0#2o&#+e. un0#2o&#+e.
SOLUTION M#1
June
'tu# 0#to&1 o2e&/e#$
=
!4<,!<<
=
!49,"<<
Bu$et #o:#ne +#se$ on st#n$#&$3 Bu$ete$ 0ie$ e(ense A4< =!< !5,<<< units
A;<,<<<
A;<,<<<
F#&i#+e e(enses3 !,<<< /&s. #o:e$ =!< .;<
A),<<<
!5,<<< /&s. #o:e$ =!< .;< Cont&o#+e 2#&i#ne
=
A9<,<<< %,!<< un0#2. =
A)<< 0#2.
Bu$ete$ #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$
=
!",<<<
=
!5<,<<<
St#n$#&$ /ou&s #o:e$ St#n$#&$ 0#to&1 o2e&/e#$ &#te3 !,<<< /&s. =!<
A!<,<<<
!5,<<< /&s. =!< Fou-e 2#&i#ne
A!5<,<<< =
!,<<<
un0#2.
<
PROBLEM 5. O2e&/e#$ F#&i#ne F#&i#ne 'n#1sis, Usin t/e T/&eeF#&i#ne Met/o$. St#n$#&$ $i&et #+o& /ou&s +u$ete$ 0o& M#1 (&o$ution :e&e 5,<<<, :it/ 0#to&1 o2e&/e#$ #t t/#t e2e +u$ete$ #t =5,<<<, o0 :/i/ :/i/ =!5,<<< is 2#&i#+e. 'tu# #+o& /ou&s 0o& t/e -ont/ -ont/ :e&e 4,%<
2#&i#ne -et/o$ Ai.e., t/e s(en$in 2#&i#ne, t/e 2#&i#+e e00iien1 2#&i#ne, #n$ t/e 2ou-e 2#&i#ne. In$i#te :/et/e& t/e 2#&i#nes #&e 0#2o&#+e 0#2o&#+e o& un0#2o&#+e. un0#2o&#+e.
SOLUTION 'tu# 0#to&1 o2e&/e#$
=
5,;<<
St#n$#&$ o2e&/e#$ /#&e#+e to (&o$ution A5,<< st#n$#&$ /ou&s #o:e$ =5 o2e&/e#$ &#te O2e&# 0#to&1 o2e&/e#$ 2#&i#ne 'tu# 0#to&1 o2e&/e#$
;,<<< =
=
A4<< 0#2o&#+e
5,;<<
Bu$et #o:#ne +#se$ on #tu# /ou&s3 F#&i#+e o2e&/e#$ A4,%<< #tu# /ou&s =" 8ie$ o2e&/e#$
=!4,4<<
!<,<<<
S(en$in 2#&i#ne
=
4,4<< !,<< un0#2o&#+e
Bu$et #o:#ne +#se$ on #tu# /ou&s A0&o- #+o2e
=
4,4<<
Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s3 F#&i#+e o2 o2e&/e#$ A5 A5,<< st st#n$#&$ /o /ou&s =" 8ie$ o2e&/e#$
=!5,;<<
!<,<<<
F#&i#+e e00iien1 2#&i#ne
5,;<< =
A!,<<
0#2o&#+e
Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s A0&o- #+o2e 5,;<< St#n$#&$ 0#to&1 o2e&/e#$ /#&e#+e to (&o$ution A0&o- #+o2e
;,<<<
Fou-e 2#&i#ne
=
A4<< 0#2o&#+e
S(en$in 2#&i#ne
=
!,<<
F#&i#+e e00iien1 2#&i#ne Fou-e 2#&i#ne O2e&# 0#to&1 o2e&/e#$ 2#&i#ne
A!,<< A4<< =
A4<< 0#2o&#+e
=
T/e 0oo:in (&o+e- is +#se$ on t/e -#te&i# in t/e '((en$iG to t/e /#(te&.
PROBLEM ;. O2e&/e#$ F#&i#ne F#&i#ne 'n#1sis, Usin t/e 8ou&F#&i#ne Met/o$. In M#1, t/e -#n#e-ent -#n#e-ent o0 entu71 Co. &eei2e$ t/e 0oo:in $#t# 0o& its Bue&#ss P&o$uts Di2ision3 St#n$#&$ !
'tu#
Units (&o$ue$
5,<<< 5,!<<
Di&et #+o& /ou&s
!<,<<<
!<,"<<
8ie$ 0#to&1 o2e&/e#$
=!,<<<
=!",<<<
F#&i#+e 0#to&1 o2e&/e#$
="<,<<<
="4,5<<
!
Denotes no&-# #(#it1 use$ 0o& (&e$ete&-ine$ o2e&/e#$ &#te o-(ut#tion.
Re6ui&e$3 P&e(#&e # 0#to&1 o2e&/e#$ o2e&/e#$ 2#&i#ne #n#1sis 0o& M#1, usin t/e 0ou&2#&i#ne
-et/o$. AIn$i#te :/et/e& e#/ 2#&i#ne is 0#2o&#+e o& un0#2o&#+e.
SOLUTION 'tu# 0#to&1 o2e&/e#$
=
4),5<<
Bu$et #o:#ne +#se$ on #tu# /ou&s :o&7e$3 8ie$ 0#to&1 o2e&/e#$
=!,<<<
F#&i#+e 0#to&1 o2e&/e#$3 ="<,<<< !<,"<< #tu# /&s. !<,<<< DLH
"<,9<<
4,9<<
S(en$in 2#&i#ne
=
4, 4,;<<
un0#2.
Bu$et #o:#ne +#se$ on #tu# /ou&s :o&7e$
=
4,9<<
'tu# /ou&s st#n$#&$ o2e&/e#$ &#te3 ="<,<<< =!,<<< !<,"<< /&s.
4",;<
!<,<<< DLH I$e #(#it1 2#&i#ne
=
A";< 0#2.
Bu$et #o:#ne +#se$ on #tu# /ou&s :o&7e$
=
4,9<<
Bu$et #o:#ne +#se$ on st#n$#&$ /ou&s #o:e$3 8ie$ e(ense
=!,<<<
F#&i#+e e(ense A!<,<< st#n$#&$ /ou&s #o:e$ =" 2#&i#+e o2e&/e#$ &#te F#&i#+e e00iien1 2#&i#ne
"<,;<< =
"<<
un0#2.
'tu# /ou&s A!<,"<< 0ie$ o2e&/e#$ &#te A=!.<
=
St#n$#&$ /ou&s #o:e$ A!<,<< 0ie$ o2e&/e#$ &#te A=!.< 8ie$ e00iien1 2#&i#ne
!,4< =
!<
4,;<<
un0#2.
!,";<
