16. Which of the following best describes the flow of costs though the accounts of a manufacturing

companys accounting system?

Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Cost of Goods Sold

Goods in Process Inventory, Raw Materials Inventory, Finished Goods Inventory, Cost of Goods Sold

Raw Materials Inventory, Finished Goods Inventory, Goods in Process Inventory, Cost of Goods Sold

Goods in Process Inventory, Finished Goods Inventory, Cost of Goods Sold, Raw Materials Inventory

17. Mountain Gear manufactures bicycles. Factory overhead costs are allocated to products using Activity Based Costing. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:

Activity	Cost	Activity Base
Production Setups	$75,000	Number of setups
Quality Control	$48,000	Number of inspections`
Materials Procurement	$23,100	Number of purchase orders

During a year, there are a total of 300 setups performed to manufacture the various models of bicycles. This year, 120 setups were needed to make the Mountain Avenger 500 model. What amount of overhead associated with production setup was assigned to the Mountain Avenger 500 bicycle?

a. $250 c. $30,000

b. $625 d. $58,440