Question
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of
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A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 70,000 6,000 9,000 20,000 Activity 2 $ 45,000 7,000 15,000 8,000 Activity 3 $ 82,000 2,500 1,000 1,625 What are the activity rates for the three activities under activity-based costing?
(1) $2.00; (2) $3.00; (3) $3.50.
(1) $2.00; (2) $1.50; (3) $32.80.
(1) $3.50; (2) $1.50; (3) $32,80.
(1) $2.00; (2) $1.50; (3) $16.00.
(1) $3.50; (2) $3.00; (3) $16.00.
1 points
QUESTION 52
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B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:
$36,500.
$2,000.
$8,500.
$6,500.
$21,500.
1 points
QUESTION 53
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A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.
130,000 materials; 112,000 conversion.
112,500 materials; 130,000 conversion.
107,500 materials; 118,000 conversion.
130,000 materials; 130,000 conversion.
122,500 materials; 112,000 conversion.
1 points
QUESTION 54
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Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods sold in October is:
Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
1 points
QUESTION 55
- A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used. 106,400.
Work in Process Inventory Beginning WIP 100,800 Direct materials ? Direct labor ? Applied overhead ? To finished goods ? Ending WIP 131,040 Factory Overhead 100,800 90,720 Finished Goods Inventory Beginning FG 118,200 324,800 301,000 Ending FG 142,000 $30,240.
$113,120.
$324,800.
$106,400.
$211,680.
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