12.)

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication.

Department	Direct Expenses	Number Purchase Orders	Square Feet
Purchasing	$ 47,000
Maintenance	27,000
Fabrication	111,000	16	4,050
Assembly	77,000	4	1,950

Multiple Choice

• $8,775.

• $9,400.

• $25,850.

• $37,600.

• $18,225.

13.)

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly.

Department	Direct Expenses	Number Purchase Orders	Square Feet
Purchasing	$ 47,000
Maintenance	27,000
Fabrication	111,000	16	4,050
Assembly	77,000	4	1,950

• $9,400.

• $18,225.

• $8,775.

• $13,500.

• $37,600.

14.)

Using the information below, compute the cash conversion cycle:

Days sales in accounts receivable	45	days
Days sales in inventory	62	days
Days payable outstanding	55	days

• 22 days.

• 117 days.

• 52 days.

• 67 days.

• 71 days.