1. A company uses the weighted average method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending goods in process inventory and are 75% complete. All of these are with respect to labor. The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825. Compute the equivalent cost per unit for labor.

2. Baker Corporation has two operating departments, Machining and Assembly, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period:

Office Expenses Total Allocation Basis

Salaries $30,000 Number of employees

Depreciation 20,000 Cost of goods sold

Advertising 40,000 net sales

Item Machining Assembly Total

Number of employees 1,000 1,500 2,500

Net sales $325,000 $475,000 $800,000

Cost of goods sold $ 75,000 $ 125,000 $200,000

The amount of office expenses that should be allocated to Assembly for the current period is:

3. Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of classrooms. Based on the information below, what is the total amount of expenses allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

Department Students Classrooms

Electrical 120 10,000 sq ft

Automotive 70 12,000 sq ft

Secretarial 50 8,000 sq ft

Plumbing 40 6,000 sq ft

4. White Company has two service departments and two operating (production) departments. The Payroll department services all three of the other departments in proportion to the number of employees in each. Also, the Maintenance Department services the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period;

Service Depts. Production Depts.

Payroll Maintenance Milling Assembly

Direct costs $20,400 $25,500 $76,500 $105,400

Number of personnel 15 15 45

Sq. ft. of space 10,000 15,000

The total cost of operating the Milling Department for the current period is

5. Mace Department store allocates its service department expenses to its various operating (sales) departments. The following data is available:

Expense Basis for allocation Amount

Rent Square feet of floor space $24,000

Advertising Amount of dollar sales $30,000

Administrative Number of employees $45,000

The following information is available for its three operating (sales) departments:

Square Dollar Number of

Department Feet Sales Employees

A 3,000 $280,000 6

B 3,400 $300,000 8

C 3,600 $420,000 10

What is the total expense allocated to Department B?

6. Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

M N O

Unit sales price $7 $4 $6

Unit variable costs 3 2 3

Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is:

Use the following to answer questions 7-9:

Kyle, Inc., has collected the following data on one of its products:

Direct materials standard (4 lbs @ $1/lb) $4 per finished unit

Total direct materials cost variance %u2013 unfavorable $13,750

Actual direct materials used 150,000 lbs

Actual finished units produced 30,000 units

7. The actual cost of the direct materials used is:

8. The direct materials quantity variance is:

9. The direct materials price variance is:

10. The following present value factors are provided for use in this problem:

Present Value Present Value of an

Periods of 1 at 8% Annuity of 1 at 8%

1 0.9259 0.9259

2 0.8573 1.7833

3 0.7938 2.5771

4 0.7350 3.3121

Norman Co. wants to purchase a machine for $40,000, but needs to earn a 8% return. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine%u2019s net present value (round to the nearest whole dollar)?