1) At the beginning of a recent period, there were 900 units of product in a department, one-third processed. These units were fmished and an additional 5,000 units were started and finished durmg the period. 800 imits were still m process at the end of the period, one- fourth processed The equivalent mits produced by the department were: A) 6,700 units. B) 5,900 units C) 5,800 units. D) 5,500 units. E) Some other number of units. 2) During a period, Department A faished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were 15 complete at the beginning of the period and 30,000 were started and completed during the period. During the period, 10,000 units were started but brought only to a stage of being 3/5 completed. The number of equivalent fmished units produced by Department A during the period was: A) 46,000 units B) 50,000 units. C) 52,000 units D) 54,000 units. E) 56,000 units 3) X Company uses a process cost accounting system. The Sewing Department's begining inventory consisted of 50,000 units X complete with respect to direct labour and overhead The Sewing Department started and fmished ,000 units. The ending mventory consists of 40,000 units that are also l'complete with respect to direct labour and overhead. All direct materials are added at the beginning of the process. What are the equivalent units of production of the Sewing Department for direct materials and for direct labour and overhead, respectively? A) 160,000; 120,000. B) 120,000, 157,500. C) 167,500, 167,500. D) 160,000; 162,500. E) 160,000, 167,500 4) Medina Corp. had the followmg mformation available for the year. Beginning inventory of goods i process 40% complete, $1,100 200 units Ending inventory of goods in process 80% complete 400 units Total units started during the year 3.200 units Total manufacturing costs incurred during the year $47,600 Equivalent units produced for the year are: A) 3,800 units. B) 3,200 units. C) 3,240 units. D) 3,520 units. E) Cannot be determined from mformation given. 5) Equivalent units of production are equal to: A) The number of units that could have been produced. B) The number of finished units produced C) The number of units introduced into the process. D) The number of units still in process. E) The sum of the numbers of finished units produced and units still in process. 6) In order to compute an EUP, you must know: A) An estimate of the percentage of completion B) An estimate of units completed C) An estimate of units started and completed. D) An estimate of direct labour cost. E) An estimate of materials cost. 7) With respect to direct labour costs, a company's beginning work in process inventory consisted of 20,000 units that were 115 complete. These units were completed and another 90,000 units were started during the period. Of those started, 60,000 were finished and the remaining 30,000 were 1/3 complete at the end of the period. The equivalent units of production were: A) 60,000 B) 74,000. C) 76,000. D) 86,000. E) 96,000. Section III - Activity Cost Based 1) Addy Company has two products: A and B. The annual production and sales of Product A are 1.700 units and of Product B are 1,100 units. The company has traditionally used direct labour-hours as the basis for applying all manufacturing overhead to products Product A requires 0.3 direct labour-hours per unit and Product B requires 0.6 direct labour-hours per unit. The total estimated overhead for next period is $98,785. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity- based costing system would have three overhead activity cost pools-Activity 1. Activity 2, and General Factory with estimated overhead costs and expected activity as follows: Activity Cost Pool Expected Activity Estimate d Product Product Overhea A BI a Costs 530,528 1.000 600 $17,385 1,200 200 Total 1.800 1,900 Activity Activity 2 General Factory Total 510 660 1,170 $50,872 $93.785 Note: The General Factory activity cor pools cose are allocated at the basis of direct labow-hours) 2) The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity based costing system is closest to: A. $9.15. B. $10.23. C. $31.99. D. $86.23 b). The overhead cost per unit of Product B under the activity-based costing system is closest to A $26.09. B. $35.28. C $38.16. D $50.66 2. Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Total Activity Expected Activity Estimate Product Product Cost Pool d Ovhd. S D Cost Activity $20,000 100 400 Activity 2 314,600 500 250 Activity 3 $90,000 300 2,700 500 750 3,000 The annual production and sales of Product Sis4547 mts. The annual production and sales of ProductD is 7.913. a) The activity rate under the activity-based costing system for Activity 3 is closest to: A. $29.32 B. $30.00 C. $33.33 D. $41.53. b) The overhead cost per unit of Product S under activity-based costing is closest to: A. $1.83 B. $1.98 C. $5.00 D. $10.00 3) Monson Company has two products: G and P. The company uses activity-based costing and has prepared the following analysis showmg the estimated total cost and expected activity for each of its three activity cost pools: Total Activity Expected Activity Estimate Product Product Cost Pool d Ovhd. GI PL Cost Activity 1 $30,000 200 400 Activity 2 $24,000 600 900 Activity 3 $80,000 400 3,600 600 1,500 4.000 The annual production and sales of Product Gis 10.640 units The annual production and sales of Product P is 26,600, a) The activity rate under the activity-based costing system for Activity 2 is closest to: A. $16.00. B. $21.97. C. $26.67 D. $89.33 b) The overhead cost per unit of Product P under activity-based costing is closest to: A $4.00 B. $6.88. C. $10.00 D. $30.16. 4) Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 200 units and of Product B are 400 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pool Total Expected Activity Estimate Product Product d Cost BI $16,660 600 100 $18.450 1.100 700 59.731 60 160 700 Activity 1 Activity 2 Activity 3 1,800 220 a) The activity rate for Activity 2 is closest to A. $10.25. B. $16.77 C. $24.91. D. $26.36, b). The overhead cost per unit of Product B is closest to: A. $17.69. B.$41.58. C. $74.73. D. $81.53 5) Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 1,100 units and of Product B are 700 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pool Total Expected Activity Estimate Product Product d Cost AL BI $18,271 600 500 $35,891 1.600 300 $48.796 440 420 Activity 1 Activity 2 Activity 3 1.100 1,900 860 a) The activity rate for Activity 3 is closest to: A. $26.67. B.$56.74. C. $116.18. D $119.72 b) The overhead cost per unit of Product A is closest to: A. $22.70. B. $47.89. C. $57.20. D. $59.23