Question
PZC Company had the following activities, traceable costs, and physical flow of driver units: Physical Flow of Activities Costs Driver Units Account inquiry (hours) $400,000
PZC Company had the following activities, traceable costs, and physical flow of driver units: Physical Flow of Activities Costs Driver Units Account inquiry (hours) $400,000 10,000 hours Account billing (lines) 280,000 4,000,000 lines Account verification (accounts) 150,000 40,000 accounts Correspondence (letters) 50,000 4,000 letters The above activities are used by departments A and B as follows: A B Account inquiry (hours) 2,000 hours 4,000 hours Account billing (lines) 400,000 lines 200,000 lines Account verification (accounts) 10,000 accounts 8,000 accounts Correspondence (letters) 1,000 letters 1,600 letters 1. How much of the account billing cost will be assigned to Department B?
Group of answer choices:
$280,000
none of the choices
$14,000
$28,000
2) How much of the account inquiry cost will be assigned to Department B?
Group of answer choices
$160,000
none of the choices
$400,000
$80,000
The Caterpillar Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Caterpillar uses weighted-average costing. Data for the Assembly Department for April 2008 are: Work in process, beginning inventory: 400 units Direct materials (100% complete) Conversion costs (40% complete) Units started during April 1,200 units Work in process, ending inventory: 250 units Direct materials (100% complete) Conversion costs (80% complete) Costs for April 2008: Work in process, beginning inventory: Direct materials $100,000 Conversion costs $300,000 Direct materials costs added during April $700,000 Conversion costs added during April $1,250,000 What amount of direct materials costs are assigned to the ending Work-in-Process account for April?
Group of answer choices
$248,387
$143,750
$250,000
$125,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started