Hi Rocky4ever, please take a look at the attachedquestions and let me know if I can have the solutions by Friday.

Thanks

1) Beeper's Boaster Juice blends high-protein smoothies and packages them for sale in major grocery stores. It uses a mix of natural ingredients and vitamins to differentiate itself from its competitors. The company uses a weighted average process costing system to cost its products in two departments: blending and packaging. Direct ingredients are added at the beginning of the process in each department and conversion costs are incurred evenly throughout the process. The following production and cost data are available for the month of February: Work-in-process (units), beginning 80,000 Units started 256,000 Work-in-process (units), ending 48,000 Direct materials Conversion Beginning inventory costs $ 250,200 $ 379,840 Costs added $1,362,600 $1,545,920 At the beginning of the period the work-in-process was 40% complete. It was 80% complete at the end of the period. What is the amount of conversion cost assigned to the February ending work-in-process? (Round the final answer to the nearest dollar.) 2) Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? a) Identify costs as direct or indirect. Accumulate all indirect costs. Determine a cost driver that best explains the increase in costs. b) Identify costs as direct or indirect. Identify an effective cost pool for each department. Determine a cost driver that best explains the increase in overhead costs in each department. c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select appropriate cost drivers. d) Identify costs that are not directly associated with a cost object. Identify cost pools. Run a regression analysis and determine whether the cost driver effectively describes the change in cost 3. Cycle-Motion Co. manufactures bicycles and unicycles. The company is considering changing from traditional overhead allocation to activity-based costing. In the past year the company produced 2,000 bicycles and 500 unicycles, and incurred $178,100 of manufacturing overhead. The predetermined overhead rate is $17.81 per direct labour hour. Based on this rate, the unit cost of each item produced for the year included $71.24 of manufacturing overhead, resulting in the following unit costs: Bicycles Direct materials $ 14.00 Unicycles $ 17.00 Direct labour 18.00 22.00 Manufacturing overhead 71.24 71.24 Total $103.24 $110.24 The company controller analyzed the past year's overhead costs for cost pools and activity drivers. She discovered that the overhead could be assigned to three cost pools and applied to the product using the following activities: Overhead cost Activity driver Annual activity volume Activity by product Bicycles Setups $30,000 Number of setups 75 60 Materials handling $80,600 Weight of materials (kg) 12,400 9,200 Equipment operations $67,500 Machine hours 45,000 25,000 Unicycles 15 3,200 20,000 Assuming the activity-based costing is more accurate, which product was under-costed using the traditional allocation of manufacturing overhead , and by how much was it undercosted per unit? Use the following information to answer questions 4 and 5: Castellanos Foods is a Greek producer of world-renowned spanakopita. The company uses a first-in, first-out (FIFO) process costing system to cost its production of spanakopita in trays through three departments: filo pastry preparation, filling preparation and baking. Inspection takes place just before the last 20% of the filling is added to the final product in the filling preparation department. The company cost accountant has estimated that this is at 60% incurrence of conversion costs. The remaining direct ingredients are added to all trays that pass inspection. Normal spoilage is 1% of good units that pass inspection in the period. The following details pertain to the month of December for the filling preparation department: Beginning work-in-process inventory (trays) Trays transferred in from filo pastry preparation Trays transferred out to baking Ending work-in-process inventory (trays) 37,500 150,000 126,000 60,000 Direct ingredients Conversion Transferred Beginning inventory $174,375 $26,250 $28,275 Costs added $705,000 $89,775 $151,830 Percentage completion Beginning inventory 100% 65% Ending inventory 50% 40% Note: Read the question carefully with respect to when the inspection for spoilage takes place. 4. What is the total value of the product transferred from the filling preparation department to baking in December? (Round final answer to the nearest dollar.) 5. If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Use the following information to answer questions 6 and 7: Alabaster Co. had sales of $500,000 for April and $1,000,000 for May. Selling price per unit remained at $5 for each month. The company started April with no beginning inventory and then produced 200,000 units in April and 100,000 units in May. Variable manufacturing cost per unit decreased from $1.10 in April to $1.00 in May . This was due to a change in labour rates. Direct materials costs remained constant at $0.45 per unit. Fixed manufacturing costs remained the same for both months at $450,000. There are no non-manufacturing costs. The company uses the first-in, first-out (FIFO) method for costing inventory. 6. What is the variable cost operating income for May? 7. What is the throughput costing operating income for May? 8. Kunchai Corp. manufactures a cleaning product called Gemini. Expected sales for Gemini (in litres) for the November to January quarter are as follows: November December January Budgeted sales of Gemini (litres) 62,500 67,500 55,000 November beginning inventory of Gemini is 3,125 litres and the company keeps an ending inventory equal to 5% of next month's sales. The following information relates to Gemini's two main ingredients, Alpha and Beta: Units required to make 1 litre of Gemini Cost per unit Opening inventory Alpha 4 $4.00 1,020 Beta 12 $8.20 3,080 To maintain smooth operations, the company uses just-in-time inventory management and keeps just 0.2% of next month's production requirements on hand in ending inventory. How much should Kunchai's controller budget for the cost of raw materials purchases of Alpha and Beta for November? 9) 4. Goldstein Inc.'s budget committee has agreed on the following budgeted income for the second quarter of next year. April May June Sales $ 20,000 $ 40,000 Beginning inventory 22,000 24,000 88,000 Purchases 10,000 75,000 24,000 Ending inventory (24,000) (88,000) (72,000) Cost of sales 8,000 11,000 40,000 Gross margin 12,000 29,000 60,000 Depreciation expense (2,000) Rent expense (16,000) (16,000) Variable selling expense (4,000) (8,000) Operating income $ (10,000) (2,000) $ 3,000 $ 100,000 (2,000) (16,000) (20,000) $ 22,000 Goldstein's accounting department collects 50% of sales in cash. The other 50% are credit card sales, with 50% of these sales collected in the month of sale and the remaining 50% collected the month following sale. The credit card company pays Goldstein 95% of the amount owing and keeps 5% as a service charge. Purchases paid within 10 days qualify for a 2% discount. Goldstein always takes the discount, and therefore always pays for its purchases in 10 days (20 of the 30 days in each month will be paid that month and 10 of the 30 days will be paid in the next month). Purchases are incurred evenly throughout the month. Rent is paid fully in the month incurred and 75% of variable selling expenses are paid for in the month of the expense; the balance is paid in the following month. How much cash will be disbursed in June for purchases and general expenses? 10) 5. Hughes Aerospace Components Ltd. manufactures metal components for aircraft. The company's main process is stamping sheet metal into parts that are used for the body of the aircraft. The company's process consists of two departments : Stamping and Finishing. Hughes uses a normal costing system, and has collected the following budgeted data for fixed manufacturing overhead: Department Fixed Cost driver Practical Average Planned manufacturing capacity activity level activity overhead level Stamping $1,680,000 Machine hours 14,000 9,400 11,200 Finishing $ 630,000 Labour hours 11,000 6,500 9,500 The company's research and development department has just designed a lightweight component using new technology. Due to lack of competition, the marketing department has decided to price the component based on the total manufacturing cost plus a markup of 40%. The following is a list of variable costs by department related to the new component: Stamping: Direct materials Direct labour Variable overhead $6.75 per component $28.00 per hour and 0.8 hours per component $35.00 per machine hour and 0.25 machine hours per component Finishing: Direct materials Direct labour Variable overhead $3.75 per component $32.00 per hour and 1.1 direct labour hours $22.00 per direct labour hour What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Material Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 288000 19200 307200 Material Conversion 250200 1362600 1612800 5.25 379840 1545920 1925760 5.90 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Sel Question 3 Answer ABC Costing Setups Materials handling Equipment operations Overhead cost Activity driver $30,000 Number of setups $80,600 Weight of materials (kg) $67,500 Machine hours Setups Materials handling Equipment operations Overhead Cost per unit Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Comaring Cost under Different Mathod Bicycles Unit Cost Under Traditional Costing System 103.24 Unit Cost under ABC 92.65 overercoted/(undercoted) 10.59 Answer Unicycles is undercoated 42.36 per unit ary ending work-in-process? Answer 226,560.00 work-in-process Conversion 288000 38400 326400 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity volume Bicycles 75 12,400 45,000 Bicycles 60 9,200 25,000 Unicycles 12 12 29.9 41.6 18.75 60 60.65 113.6 Unicycles 15 3,200 20,000 Bicycles Unicycles 14 17 18 22 60.65 113.6 92.65 152.6 t Mathod Unicycles 110.24 152.6 -42.36 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 750000 1605 751605 3,080 748,525 8.2 6137905 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6137905 7139965 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 anufacturing costs based on 333.33333333 121.58 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 802500 1605 804105 3,080 801,025 8.2 6568405 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6568405 7570465 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 anufacturing costs based on 121.58 Sales Add Clsoing Less Closing Production Rquiremnt Add Closing 62500 3375 65875 3125 62750 67500 2750 70250 3375 66875 802500 1605 804105 3080 801025 6568405 802500 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 753000 1605 754605 3,080 751,525 8.2 6162505 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6162525 7164585 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Total Disbursment 73180 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 73180 anufacturing costs based on 121.58 Sales Add Clsoing Less Closing Production Rquiremnt Add Closing 62500 3375 65875 3125 62750 67500 2750 70250 3375 66875 802500 1605 804105 3080 801025 6568405 802500 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 750000 1605 751605 3,080 748,525 8.2 6137905 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6137905 7139965 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 anufacturing costs based on 333.33333333 121.58 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 802500 1605 804105 3,080 801,025 8.2 6568405 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6568405 7570465 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 anufacturing costs based on 121.58 Sales Add Clsoing Less Closing Production Rquiremnt Add Closing 62500 3375 65875 3125 62750 67500 2750 70250 3375 66875 802500 1605 804105 3080 801025 6568405 802500 Question 1 What is the amount of conversion cost assigned to the February ending work-in-process? Amount of conversion cost assigned to the February ending work-in-process Workings Units Completed Ending Wip Equivalent Units Cost Details Beginning inventory costs Costs added Total Cost Cost Per equivalent Units Question 2 Answer 288000 48000 Material 250200 1362600 1612800 5.25 Activity-based costing is an indirect cost allocation system. Which of the following best describes the three steps of assigning costs in an indirect cost allocation system? c) Identify costs that are not directly associated with a cost pool. Design indirect cost pools. Select Question 3 Answer ABC Costing Overhead cost Setups Materials handling Equipment operations $30,000 $80,600 $67,500 Comparing Cost under Different Mathod Unit Cost Under Traditional Costing System Unit Cost under ABC overercoted/(undercoted) Answer Unicycles is undercoated 42.36 per unit Question no 4 What is the total value of the product transferred from the filling preparation department to baking in December? Answer 822753 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss BWIP Started And Completed Normal Spoilage Abnormal Ending WIP Total Equivalent Units 37,500 88,500 885 615 60,000 Transferred Question no 5 Cost incured during the Period Eqivalent Unit Cost 705000 4.70 Cost of Units Tansfered out Cost of BWIP Started And Completed ADD Cost of Normal Loss Value of the Product Tranferd out 228900 588525 5328 822753 If ending inventory was 80% complete as to direct ingredients and 60% complete as to conversion costs, and inspection had taken place, how many units would abnormal spoilage consist of? Answer 15 Units to Account for: BWIP Started during March Total Units Accounted for: Completed Units From BWIP Started And Completed Total Spoilage EWIP Total Inspected from Started Inspected from BWIP Inspected from EWIP Total Inspected Total Lost Units Good Units Normal Loss (1%) Abnornal Loss Question no 6 6. What is the variable cost operating income for May? Variable cost Income Statement April Sales 500,000 Variable Manufactruing Cost 220000 Cost of Goods manufatured 220,000 Add Beginning Inventory 0 Cost of Goods Avialable for Sales 220,000 Less Closing Inventory 110000 Cost of Goods Sold 110,000 Contrbution 390,000 Less Fixed Overhead 450000 Net Income -60,000 Net Income For the Month of May Question no7 7. What is the throughput costing operating income for May? Thoughput cost Income Statement April Sales 500,000 Direct Material Cost of goods sold Beginning Inventory 0 Direct Material 90000 Cost of Goods Avialable for Sales 90,000 Less Closing Inventory 45000 Direct Material Cost of Goods Sold 45,000 Throughput margin 455,000 Less Manufacturing Cost other than Direct mater 580000 Net Income -125,000 Net Income For the Month of May Question no 8 Production Budget November No of units Sold Ending Inventory Total needed Less Opening Invenory Prodution requirment 62500 3375 65875 3125 62750 Alpha Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Alpha November Beta Purchase budget Prodution requirment Ending Inventory Total needed Less Opening Invenory No of Units of Alpha to be Purchased Cost per unit Budget for the cost of raw materials Beta November 251000 535 251535 1,020 250,515 4 1002060 753000 1605 754605 3,080 751,525 8.2 6162505 Alpha and Beta for November? Budget for the cost of raw materials Alpha Budget for the cost of raw materials Beta Total 1002060 6162525 7164585 Question no 9 Payment for the Purchase made on month of May Payment for the Purchase made on month of june Disbursment for Purhcase 24500 15680 40180 Disbursment for General Expense Rent Variable selling expense Disbursment for General Expense 16000 17000 33000 Total Disbursment 73180 Question no 10 What is the price per component if Hughes allocates fixed manufacturing costs based on 19,000 direct labour hours (rounded to the nearest cent)? Answer 464.87 Stamping Direct materials Direct labour Variable overhead 6.75 22.4 8.75 Finishing Direct materials Direct labour Variable overhead 3.75 35.2 24.2 Fixed manufacturing cost Stamping Finishing 97.26 133.74 Cost Per per component Add markup 40% Price per component 332.05 132.82 464.87 Fixed manufacturing cost overhead application rate ary ending work-in-process? Answer 226,560.00 work-in-process Material Conversion 288000 288000 19200 38400 307200 326400 Conversion 379840 1545920 1925760 5.90 Which of the following best t allocation system? pool. Design indirect cost pools. Select appropriate cost drivers. ABC Costing activity Activity driver volume Number of setups Weight of materials (kg) Machine hours Bicycles 75 12,400 45,000 Bicycles Setups Materials handling Equipment operations Overhead Cost per unit Unicycles 60 9,200 25,000 Unicycles 12 29.9 18.75 60.65 12 41.6 60 113.6 15 3,200 20,000 Bicycles Direct Material Direct Labor Overhead Cost per unit unit cost under ABC Meth Different Mathod Bicycles Unicycles 14 18 60.65 92.65 17 22 113.6 152.6 Unicycles 103.24 92.65 10.59 110.24 152.6 -42.36 lling preparation department to Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 90,000 (1,500) 88,500 885 615 Transferred Ingrediant Conversion 0 88,500 885 615 60,000 150000 Ingrediant 0 88,500 708 492 30,000 119700 Conversion Total 89775 151830 0.75 1.20 s and 60% complete as to units would abnormal Physical Flow 37,500 150,000 187,500 37,500 88,500 1,500 60,000 187,500 90,000 0 60,000 150,000 (1,500) 148,500 1,485 15 13125 88,500 531 369 24000 126525 6.65 ment May 1,000,000 100000 100,000 110000 210,000 0 210,000 790,000 450000 340,000 340,000 ement May 1,000,000 45000 45000 90,000 0 90,000 910,000 505000 405,000 405,000 December 67500 2750 70250 3375 66875 1,500,000 320000 1,180,000 900,000 280,000 73180 anufacturing costs based on 121.58 Sales Add Clsoing Less Closing Production Rquiremnt Add Closing 62500 3375 65875 3125 62750 67500 2750 70250 3375 66875 802500 1605 804105 3080 801025 6568405 802500