7. Rafa - Novak Tennis Company produces tennis racquets sequentially in two processes in two departments. At the beginning of a period, Department 2 had 5000 units, which were 50 per cent complete as to conversion cost. During the period, 19 000 units were completed and transferred from Department 1 to Department 2. At the end of the period, Department 2 had 6000 units, which were 20 per cent complete as to conversion costs. How many units were completed and transferred from Department 2 during the period? Select one: 18 000 19 000 10 000 17 000

8.

Tottenham Hotspur Ltd FC makes a product called only hope. Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout the process.

For May, opening WIP is 15,000 units (60% complete), 60,000 units are started and 68,000 units are completed and transferred out. Closing WIP is 20% complete.

Using the weighted average method of process costing, calculate the equivalent units of direct materials and conversion costs for the month of May.

Select one:

DM 75 000; CC 60 400

DM 75 000; CC 69 400

DM 60 000; CC 60 400

DM 68 000; CC 69 400

9.

Nadal Tennis Pty Ltd makes a variety of tennis racquets. The Weaving Department had 1000 units in work in process on April 1, which were 20 per cent complete as to conversion costs. During April, 8000 units were completed and transferred. On April 30, 4000 units remained in work in process 50 per cent complete as to conversion costs. Using the weighted average method process costing, calculate the equivalent units of conversion for the month of April.

Select one:

9000

10 000

9800

12 000

10.

Novak - Rafa Tennis Company produces tennis balls sequentially in two processes in two departments. At the beginning of a period, Department 2 had 3000 units, which were 50 per cent complete as to conversion cost. During the period, 15 000 units were completed and transferred from Department 1 to Department 2. At the end of the period, Department 2 had 4000 units, which were 20 per cent complete as to conversion costs. How many units were completed and transferred from Department 2 during the period?

Select one:

15 700

11 000

14 000

12 500

11.

A joint cost is:

Select one:

a cost that is directly attributable to the production of a specific good or service.

a cost shared by more than one process in a manufacturing cycle.

a cost of a single process that yields two or more products or services simultaneously.

All of the given answers

12.

The 'direct method' of allocating support department costs ignores the fact that:

Select one:

each department's cost is allocated only for the service consumed by it.

some support departments provide services to other support departments.

costs need to be fully allocated to operating departments.

All of the given answers.

13.

The support department cost allocation method that recognises some of the reciprocal services between support departments is called the:

Select one:

dual cost allocation method.

reciprocal method.

joint cost method.

step-down method.

14.

Borano Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Janitorial and Personnel). The usage of the two support departments is as follows:

User of SupportPersonnelJanitorial

Personnel5%

Janitorial10%

Assembly60%40%

Finishing30%55%

The budgeted costs in the support departments were as follows:

Personnel$ 90 000

Janitorial$ 50 000

Using the direct method, what is the Personnel Department cost allocated to the Assembly Department?

Select one:

$78 842

$54 000

$60 000

$22 500

15.

Everton FC retail Ltd sells 2 products Bitters and Haters. The firm has a Cleaning Department and a Human Resources (HR) Department that provide services to two Sales Departments. The Cleaning Department cost is allocated based on space and the HR Department cost is allocated based on employees. The following information is available.

	HR Dept	Cleaning Dept	Sales #1	Sales #2
No. of Employees	5	10	15	45
Budget	$ 45 000	$ 30 000
Space (sq m)	4000	1000	20 000	30 000

Using the direct method, calculate the amount of service department cost (in total) allocated to Sales Department #1.

Select one:

$23 250

$50 000

$30 000

$75 000