S9 d Na SECTION B-OPEN QUESTIONS Note: ALL 2 questions are compulsory and MUST be attempted. (Total 80 marks). Problem 1: Chan Corporation produces only one type of product. The following items in millions) pertain to Chan Corporation: For specific date For Year 2009 Work-in-process inventory, Jan.1 $ 10 Plant utilities cost $ 5 2009 Direct materials inventory, Dec.31 $ 5 Indirect manufacturing labor $ 20 2009 Finished goods inventory, Dec.31 $ 12 Depreciation - plant and equipment $9 2009 Accounts Payable, Dec.31 2009 $ 20 Sales bonuses Revenues $ 350 Accounts Receivable, Jan. 1 2009 $ 50 Miscellaneous manufacturing overhead $ 10 Work-in-process inventory, Dec.31 $ 2 Marketing, distribution, and customer S 87 2009 service costs Finished goods inventory, Jan. 1 2009 $ 40 Direct materials purchased $ 80 Direct manufacturing labor $ 40 Accounts Receivable, Dec.31 2009 $ 30 Plant Supplies used $ 6 Accounts Payable, Jan. 1 2009 $ 40 Property taxes on plant $ 1 Direct materials inventory, Jan. 1 $ 30 2009 Chan's manufacturing costing system classifies its manufacturing costs into Direct Materials, Direct Labor, or Manufacturing Overhead. Required: (10 marks) 2. Prepare income statement for the year ended Dec 31, 2009 in good form. (10 marks) 3. Compute total product costs and period costs for the period. (5 marks) 4. Suppose that both the direct materials used and the depreciation on plant and equipment are related to the production of 5 million units of product. Calculate the unit cost for materials and depreciation on plant and equipment (depreciation is computed on a straight-line basis). (5 marks) 5. Assuming the same cost behavior patterns that persisted in the requirement (5) and the company's expected production in 2010 of 6 million units calculate total and per unit costs for direct materials and depreciation on plant and equipment. (10 marks) Link Com - cogs + loge HOPEFITET Ae. = Note: Total 40 marks. non