1

The flow of costs through the financial statements is shown below.

In June, Company A incurs the following costs:

Direct Material: $55,000

Direct Labor: $40,000

Manufacturing Overhead: $65,000

Non-manufacturing Costs: $60,000

How much is the increase in inventory during the month? (Assuming sales of inventory are not considered)

select the correct one.

$160,000

$95,000

$220,000

$65,000

Question 2

Shown below is the flow of costs through financial statements, with the flow through the inventory account broken down a bit further.

If the beginning balances of raw materials, work-in-process, and finished goods are all 0, and the ending balances of RM, WIP and FG are all $20,000, which of the following statements is correct?

select the correct one

If product costs are $75,000, then $35,000 of finished goods are sold

If $75,000 of finished goods are sold, then $55,000 of inventory is completed and moved to finished goods during the month

If $75,000 of inventory is completed and moved to finished goods during the month, then product costs are $55,000

If direct material is $30,000, then $10,000 of raw materials is purchased during the month

Q;3

The company uses a departmental method to allocate overhead in each of the two cost pools - installation and inspection. How much overhead per unit is allocated to product B if the company uses direct labor hours as the allocation base?

select the correct one.

225

145

110

105

Q;4

The company allocates overhead incurred in the assembly department based on direct labor dollars and allocates overhead in the testing department based on machine hours. 2,000 units of product B are produced. How much manufacturing overhead per unit is allocated to product B?

40

5

15

10

Q;5,

What is the allocation rate for the receiving and handling of materials?

SELECT THE correct answer

2,000

50

20,000

100

Q;6

Q;7

Q;8

Q;9

Q;10

The controller of Sensor Co., after taking Managerial Accounting, has decided to implement an ABC system in the assembly department. She identifies the following three cost pools and cost drivers: What is the total overhead cost in the assembly department for product B? 6,00010,00012,50028,500 . Accounting firm XYZ provides audit, tax, and general accounting services. It estimates it will have 773 auditing, 500 taxation, and 1,000 other service engagements. The company uses an ABC system with the following three cost pools and cost drivers to allocate its indirect costs: What is the overhead cost per engagement for other services? $417.21 $125.00 $95.00 $65.00 Elevator Co. makes two product models, A and B, and provides both installation and inspection services for its customers. Budgeted information is as follows: The controller of Sensor Co. has also decided to implement an ABC system in the testing department. She identifies the following three cost pools and cost drivers: What is the total overhead cost in the testing department for product B? 16,40038,00030,00046,400 Accounting firm XYZ provides audit, tax, and general accounting services. It estimates it will have 773 auditing, 500 taxation, and 1,000 other service engagements. The company uses an ABC system with the following three cost pools and cost drivers to allocate its indirect costs: How much total overhead cost will be allocated to other services? 125,000386,50095,00065,000 The controller of Sensor Co., after taking Managerial Accounting, has decided to implement an ABC system in the assembly department. She identifies the following three cost pools and cost drivers: Sensor Co. makes two products: A and B. Each product goes through the assembly department and the testing department. Budgeted information is as follows: Company MN is a wholesale distributor. It uses an ABC system to analyze customer profitability for its small- and medium-sized retail customers. The cost pool, cost driver and other relevant information is shown below. What is the average total overhead cost per product sold to medium retailers? (Assuming every item sold requires certain involvement of customer service) $25.00 $2.15 $50.00 $3.81