Question

1. A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

   				Budgeted Activity
   Activity Cost Pool	Budgeted Cost			Product A		Product B		Product C
   Activity 1	$	70,000		6,000		9,000		20,000
   Activity 2	$	45,000		7,000		15,000		8,000
   Activity 3	$	82,000		2,500		1,000		1,625

     
   What are the activity rates for the three activities under activity-based costing?

   		(1) $2.00; (2) $3.00; (3) $3.50.
   		(1) $2.00; (2) $1.50; (3) $32.80.
   		(1) $3.50; (2) $1.50; (3) $32,80.
   		(1) $2.00; (2) $1.50; (3) $16.00.
   		(1) $3.50; (2) $3.00; (3) $16.00.

1 points   

QUESTION 52

1. B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:

   		$36,500.
   		$2,000.
   		$8,500.
   		$6,500.
   		$21,500.

1 points   

QUESTION 53

1. A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs).
     
   Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

   		130,000 materials; 112,000 conversion.
   		112,500 materials; 130,000 conversion.
   		107,500 materials; 118,000 conversion.
   		130,000 materials; 130,000 conversion.
   		122,500 materials; 112,000 conversion.

1 points   

QUESTION 54

1. Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods sold in October is:

   		Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
   		Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
   		Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
   		Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
   		Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.

1 points   

QUESTION 55

1. A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.
   106,400.  
   
   

   Work in Process Inventory
   Beginning WIP	100,800
   Direct materials	?
   Direct labor	?
   Applied overhead	?
   To finished goods			?
   Ending WIP	131,040

   Factory Overhead
   100,800	90,720

   Finished Goods Inventory
   Beginning FG	118,200
   	324,800		301,000
   Ending FG	142,000

   		$30,240.
   		$113,120.
   		$324,800.
   		$106,400.
   		$211,680.

Answer 1

51.
Activity Rates
Activity 1 = $70000/35000 = $2
Activity 2 = $45000/30000 = $1.50
Activity 3 = $82000 / 5125 = $16

Answer is (1) $2.00; (2) $1.50; (3) $16.00

52.
Answer is $8500 i.e. $6500+800+1000+200

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