Please answer the attached questions. Person should include answers and pages showing work.

NAME: ACT 5004 WEB - Cost Accounting Summer Term 2016 Assignment Two 100 Points Put your name at the top of the page where indicated. Select the best answer for the following 10 multiple-choice questions. Each question is worth 10 points. MUST submit the answer sheet below and scratch paper that shows work. Good luck! 1.____C_____ 2. ________ 3. ________ 4. ________ 5. ________ 6. ________ 7. ________ 8. ________ 9. ____C____ 10. ________ 1 1. Which of the following is a benefit of Activity Based Costing? A. More accurate measures of production volume B. Facilitate better product pricing decisions C. Having fewer cost drivers than volume based costing systems D. More streamlined manufacturing processes 2. The processes which enhance operational efficiency and asset utilization, and lower costs is referred to as A. operational activity based management B. strategic activity based management C. operational activity based costing D. strategic activity based costing Answer questions 3 and 4 using the information below: Tyronn Spoelstra Inc. manufactures shatterproof basketball backboards with the metal hoops. Its' costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for June 2016 are: Work in process, beginning inventory, 40% converted 200 units Units started during June 800 units Work in process, ending inventory 100 units Costs for Department A for June 2016 are: Work in process, beginning inventory: Direct materials Conversion costs Direct materials costs added during June Conversion costs added during June $150,000 $200,000 $600,000 $425,000 3. What is the unit cost per equivalent unit of beginning inventory in Department A? A. $750 B. $1,750 C. $2,800 D. $3,250 4. How many units were completed and transferred out of Department A during June? A. 300 units B. 800 units C. 900 units D. 1,000 units Continued 2 Answer questions 5 and 6 using the information below: Ndamukong Suh Ceramics Inc. is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic vases are then transferred to finishing department, which designs it as per the requirement of the customers. During the month of July, molding department purchased 500 kilograms of tungsten carbide at $60 per kg. It started manufacture of 4,000 vases and completed and transferred 3,200 vases during the month. It has 800 vases in the process at the end of the month. It incurred direct labor charges of $1,000 and other manufacturing costs of $500, which included electricity costs of $200. Suh had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 50% complete in respect of conversion costs. 5. The journal entry to record tungsten carbide purchased and used in production during July is A. Work in ProcessMolding $3,000 Accounts Payable Control $3,000 B. Work in ProcessMolding $2,400 Accounts Payable Control $2,400 C. Accounts Payable Control $2,400 Work in ProcessMolding $2,400 D. Accounts Payable Control $3,000 Work in ProcessMolding $3,000 6. The journal entry to record direct labor for July is A. Work in ProcessMolding $3,000 Accounts Payable Control $3,000 B. Work in ProcessMolding $1,000 Overhead Control $1,000 C. Work in ProcessMolding $1,000 Wages Payable Control $1,000 D. Work in ProcessMolding $1,000 Work in ProcessFinishing $1,000 Continued 3 Answer questions 7 and 8 using the information below: 7. Joe Thomas Tackle Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenancehours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted maintenancehours Number of employees Production Support Departments Departments Maintenance Personnel A B Department Department $300,000 $100,000 $160,00 $240,00 0 0 NA 800 1,200 600 50 NA 200 600 7. Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? A. $96,000 B. $100,000 C. $110,000 D. $122,000 8. Using the step-down method, what amount (rounded) of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? A. $66,734 B. $69,231 C. $71,443 D. $84,143 9. Which of the following statements best define splitoff point in joint costing? A. It is the point at which managers decide to discontinue one or more of the products. B. It is the point at which the managers decide to outsource some of its production processes. C. It is the juncture in a joint production process when two or more products become separately identifiable. D. It is the juncture at which decisions determining joint costs of various products to be produced are taken. Continued 4 10. The Manziel Grill Corporation processes raw milk up to the splitoff point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of June 2016: Direct materials processed: Production: Cream Liquid skim Sales: Cream Liquid skim 750,000 gallons (727,500 gallons of good product) 442,500 gallons 285,000 gallons 421,500 at $110 per gallon 273,000 at $100 per gallon The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 727,500 gallons of good product was $2,280,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim? A. $1,386,804 and $893,196 B. $1,140,000 and $1,140,000 C. $1,368,000 and $912,000 D. $1,254,000 and $1,026,000 5