Question
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
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
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