Exercise 175 The following information is available for Elliot Company.docx

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Exercise 175 The following information is available for Elliot Company January 1, 2013 $26,000 13,500 30,000 2013 December 31, 2013 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales $30,000 22,200 21,000 $170,000 220,000 180,000 800,000 Compute cost of goods manufactured. Cost of goods manufactured Solution Answer:Cost of goods manufactured: (a) Direct Material Used= Opening raw material +Net purchases - Closing raw material =$26000+$170000-$30000 =$166000 (b) Total manufacturing cost =Direct material used +Direct labor+Manufacturing overhead =$166000+$220000+$180000 =$566000 (c) Cost of goods manufactured=Total manufacturing cost+Opening work in progress - Closing work in progresss =$566000+$13500-$22200 =$557300 Answer: Cost of goods sold =Cost of goods manufactured +Opening finished goods - Closing finished goods =$557300+$30000-$21000 =$566300 Income statement = Revenue - Cost of goods sold =$800000-$566300 =$233700 .

Exercise 175 The following information is available for Elliot Company January 1, 2013
$26,000 13,500 30,000 2013 December 31, 2013 Raw materials inventory Work in process
inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead
Sales $30,000 22,200 21,000 $170,000 220,000 180,000 800,000 Compute cost of goods
manufactured. Cost of goods manufactured
Solution
Answer:Cost of goods manufactured:
(a) Direct Material Used= Opening raw material +Net purchases - Closing raw material
=$26000+$170000-$30000
=$166000
(b) Total manufacturing cost =Direct material used +Direct labor+Manufacturing overhead
=$166000+$220000+$180000
=$566000
(c) Cost of goods manufactured=Total manufacturing cost+Opening work in progress - Closing
work in progresss
=$566000+$13500-$22200
=$557300
Answer: Cost of goods sold =Cost of goods manufactured +Opening finished goods - Closing
finished goods
=$557300+$30000-$21000
=$566300

Income statement = Revenue - Cost of goods sold
=$800000-$566300
=$233700

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Explain two Principle of locality used in Memory Hierarchy. Solution Hierarchical memory is a hardware optimization that takes the benefits of spatial and temporal locality and can be used on several levels of the memory hierarchy. Paging obviously benefits from temporal and spatial locality. A cache is a simple example of exploiting temporal locality, because it is a specially designed, faster but smaller memory area, generally used to keep recently referenced data and data near recently referenced data, which can lead to potential performance increases. Principle of Locality: Memory Hierarchies :- Temporal locality- Recently accessed items will be accessed in the near future. Temporal locality is found in instruction loops, data stacks and variable accesses. If at one point a particular memory location is referenced, then it is likely that the same location will be referenced again in the near future. There is a temporal proximity between the adjacent references to the same memory location. In this case it is common to make efforts to store a copy of the referenced data in special memory storage, which can be accessed faster. Temporal locality is a special case of spatial locality, namely when the prospective location is identical to the present location. Spatial locality - Items at addresses close to the addresses of recently accessed items will be accessed in the near future. Spatial locality describes the characteristic that programs access a number of distinct regions. If a particular storage location is referenced at a particular time, then it is likely that nearby memory locations will be referenced in the near future. In this case it is common to attempt to guess the size and shape of the area around the current reference for which it is worthwhile to prepare faster access .

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