CIMAPRO19-P01-1 Exam - Topic 6 Question 89 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 89
Topic #: 6

A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier.

The following costs relate to the manufacture of one machine:

What is the finished goods inventory valuation for one machine using throughput costing?

A$24.00

B$38.00

C$6.00

D$48.00

Show Suggested Answer

Suggested Answer: C

References:

by Kayleigh at May 30, 2024, 02:38 PM

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Hyman

3 months ago

Isn't the engine cost a big factor here?

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Gregoria

3 months ago

Definitely going with option B, $38.00 feels right.

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Ashley

3 months ago

Wait, how can it be $48.00? That seems way too high!

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Talia

4 months ago

I think the finished goods inventory should be $24.00.

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Rosalind

4 months ago

The machine uses two types of raw materials.

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Quentin

4 months ago

If I recall correctly, throughput costing emphasizes the contribution of each unit, so I might lean towards the lower options like $24 or $6.

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Daniel

4 months ago

I think the finished goods valuation should only include direct materials and labor, but I’m a bit confused about the engine cost.

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Freeman

4 months ago

This question reminds me of a similar practice one where we had to calculate inventory using variable costing. I think we need to exclude fixed costs.

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Edmond

5 months ago

I remember throughput costing focuses on the contribution margin, but I'm not sure how to apply it here.

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Ling

5 months ago

This is a tricky one. Throughput costing is a bit different from the traditional absorption costing I'm more familiar with. I'll need to really focus on understanding the key principles here to arrive at the correct answer.

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Latosha

5 months ago

Okay, I think I've got a good handle on this. I'll start by identifying the direct materials, direct labor, and outside purchases, then add those up to get the total cost per machine. Shouldn't be too difficult if I work through it step-by-step.

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Major

5 months ago

Hmm, I'm a bit unsure about this one. The information provided seems clear, but I want to make sure I'm not missing any key details in the calculation. I'll need to review the throughput costing concept carefully.

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Brigette

5 months ago

This looks like a straightforward throughput costing question. I'll need to focus on the direct materials, direct labor, and outside purchases to determine the finished goods inventory value.

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Goldie

5 months ago

I'm feeling pretty confident about this one. I think the Kinesis Data Firehose option is the way to go - it should give us the lowest latency.

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Elouise

5 months ago

Wait, do I need to create a database while collecting? Option A seems weird. I'll probably go with avoiding excessive document handling.

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Beatriz

5 months ago

This looks like a pretty straightforward VPN configuration question. I'm confident I can handle this one.

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Cory

5 months ago

I feel a bit unsure, but I remember something about data governance from the last practice session. So maybe option B is the right one?

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Lawrence

10 months ago

Throughput costing, huh? Sounds like something you'd find in a physics lab, not a manufacturing plant. I'm going to go with the answer that involves the most math, because that's how I roll. D) $48.00, let's do this!

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Amie

10 months ago

Throughput costing, huh? Sounds like a fancy term for 'how much does it cost to actually make the thing?' I'm going to go with A) $24.00 and hope for the best. Fingers crossed!

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Chi

8 months ago

I agree with you, A) $24.00 does sound like a good option. Let's see if we're right.

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Paris

8 months ago

I'm not sure, but I'll pick D) $48.00 and see if that's correct.

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Xuan

8 months ago

I think I'll go with B) $38.00. Seems like a reasonable choice.

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Pearline

10 months ago

Ah, the age-old debate between full absorption costing and throughput costing. I'm feeling saucy today, so I'm going to go with D) $48.00 just to stir things up a bit.

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Natalya

10 months ago

Okay, let's break this down. The question is asking for the finished goods inventory valuation using throughput costing, which means we're only considering the truly variable costs. I'm going with C) $6.00 on this one.

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Frankie

8 months ago

So, the finished goods inventory valuation for one machine using throughput costing is $6.00.

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Pilar

8 months ago

I agree, it's important to focus on the truly variable costs when using throughput costing.

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Denny

9 months ago

I think you're right, C) $6.00 makes sense because throughput costing only considers variable costs.

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Chantell

10 months ago

I'm not sure, but I think it might be $48.00 considering all the costs involved in manufacturing the machine.

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Ruby

10 months ago

I disagree, I believe it would be $38.00 because of the direct materials and direct labor costs.

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Vonda

11 months ago

Ah, the classic throughput costing question! Let's see, we've got two types of raw material, skilled labor, and an engine from an outside supplier. Hmm, I'm thinking B) $38.00 is the way to go here.

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Allene

10 months ago

Yes, it makes sense when you consider all the components that go into manufacturing the machine.

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Matt

10 months ago

I agree, B) $38.00 seems like the correct choice considering all the costs involved.

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Staci

11 months ago

I think the finished goods inventory valuation would be $24.00.

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