Accounting

1.

The cost of materials for beginning work - in - process is $10,300. Materials costs added during the period were $131,700 The equivalent units of production for materials is 59,000 units Using the weighted - average method, what is the cost per equivalent unit for materials? O A. $3.41 0 B. $2.41 0 c. $2.23 0 D. $0.17 Richardson, Inc. purchased raw materials worth $400 for cash. The journal entry to record this transaction will include . Process costing is used. T O A. a debit to Accounts Payable for $400 and a credit to Raw Materials Inventory for $400 0 B. a debit to Raw Materials Inventory for $400 and a credit to Cash for $400 0 C. a debit to Raw Materials Inventory for $400 and a credit to Accounts Payable for $400 0 D. a debit to Cash for $400 and a credit to Raw Materials Inventory for $400 The Refining Department of Kristian, Inc. had 89,000 pounds of materials to account for in the current month. Of the 89,000 pounds, 65,000 pounds were completed and transferred to finished goods, and the remaining 24,000 pounds were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted - average method is used. Calculate the total equivalent units of production for direct materials. O A. 77,000 pounds O B. 12,000 pounds O C. 89,000 pounds O D. 65,000 poundsBorset'la, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,000. Additional estimated information is given below. Totes Satdtels Direct materials cost per unit $35 $44 Direct labor cost per unit $51 $61 Number of units 530 400 Calculate the amount of overhead to be allocated to Satchels, if the actual units produced and direct labor costs equal the estimated amounts, (Round any percentages to two decimal places and your nal answer to the nearest dollar.) o A. $11,861 0 B. $490 0 c. $13,139 0 0. $24,400 Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $67,000 2,600 hours Account billing (lines) $32,000 20,000 lines Account verification (accounts) $11,000 22,000 accounts Correspondence (letters) $12,000 1,200 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 120 hours 250 hours Account billing (lines) 12,000 lines 7,000 lines Account verification (accounts) 1,000 accounts 700 accounts Correspondence (letters) 30 letters 1 10 letters What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) . . . . . A. $25.77 O B. $1.60 O C. $3.35 O D. $12.31Williams Company has the following information: Basic Model Basic Model Traditional allocation ABC Allocation Net Sales Revenue $470 $470 Cost of Goods Sold 330 300 Using ABC allocation, how many percentage points (higher or lower) is the gross prot percentage than if using the traditional allocation method? 0 A. 36.17 percentage points lower 0 B. 6.38 percentage points lower 0 C. 6.38 percentage points higher 0 D. 36.17 percentage points higher Bar None Legal Services, Inc. is a consulting rm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $200,000. The company is expected to work 8,000 direct labor hours during the year. The direct labor rate is $200 per hour: Clients are billed at 120% of direct labor cost, Last month, Bar None's consultants spent 175 hours on Henderson, Inc. Calculate the total costs assigned and allocated to Henderson. O A. $39,375 0 a. $210,000 0 c. $2,625 0 0. $35,000 Under a just - in - time costing system, the journal entry for $10,000 incurred for labor costs and $5,000 of factory deprecation would be: O A. Conversion Costs 15,000 Accounts Payable 10,000 Wages Payable 5,000 O B. Conversion Costs 15,000 Wages Payable 10,000 Accumulated Depreciation 5,000 O C. Conversion Costs 15,000 Cash 15,000 0 D. Accounts Payable 15.000 Conversion Costs 10,000 Accumulated Deprecation 5,000 If a company undertakes a quality improvement program, it would spend an additional $350,000 on raw materials inspection and an additional $240,000 on nish goods inspection. This quality improvement program would save the company $360,000 in rework. What would be the cost or savings of undertaking this quality improvement program? O A. $230,000 in additional costs 0 B. $950,000 in additional costs O C. $230,000 in savings 0 D. $950,000 in savings Product A has a variable cost of $12 per unit and product B has a variable cost of $7 per unit. If a company makes 170 units of Product A and zero (0) units of Product B, what is the total variable costs for both products? o A. $2,040 0 3. $1,190 0 0. $4,080 0 D. $3,230