CIMA Exam CIMAPRO19-P01-1 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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Lawrence

23 days 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

24 days 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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Pearline

28 days 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

1 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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Denny

9 days ago

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

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Chantell

2 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

2 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

2 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

22 days ago

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

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Matt

1 months ago

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

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Staci

2 months ago

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

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