Question
Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018
Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows:
| Costs | |||
| Units | Materials | Conversion | |
| Work in process, May 1 | 25,000 | $ 68,750 | $167,650 |
| Started during May | 100,000 | 300,000 | 903,350 |
| Work in process, May 31 | 10,000 | ||
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO method?
a.111,500 units
b.100,000 units
c.101,500 units
d.125,000 units
Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
| Product | Number of Setups | Machine Hours | Packing Orders |
| D | 10 | 500 | 75 |
| F | 10 | 2,000 | 175 |
| Cost per pool | $9,000 | $60,000 | $15,000 |
Using functional-based costing, what is the amount of overhead cost to be assigned to Product D using machine hours as the allocation base?
a.$12,000
b.$16,800
c.$48,000
d.$60,000
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Management And Cost Accounting
Authors: Charles T. Horngren, George Foster, Srikant M. Datar
3rd Edition
0273687514, 978-0273687511
