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Question;Use the following to answer questions 172-173;(Appendix 4A) Outinki Corporation uses the FIFO method in;its process costing system. Data concerning the first processing department for;the most recent month are listed below;Beginning;work in process inventory;Units;in beginning work in process inventory 700;Materials;costs $8,600;Conversion;costs $8,800;Percent;complete with respect to materials 75%;Percent;complete with respect to conversion 45%;Units;started into production during the month 7,800;Units;transferred to the next department during the month 6,800;Materials;costs added during the month $97,600;Conversion;costs added during the month $172,900;Ending;work in process inventory;Units;in ending work in process inventory 1,700;Percent;complete with respect to materials 90%;Percent;complete with respect to conversion 25%;Note: Your answers may differ from those offered below due;to rounding error. In all cases, select the answer that is the closest to the;answer you computed. To reduce rounding error, carry out all computations to at;least three decimal places.;172. What are the equivalent units for;conversion costs for the month in the first processing department?;A) 6,910;B) 425;C) 8,500;D) 6,100;173. The cost per equivalent unit for;materials for the month in the first processing department is closest to;A) $14.35;B) $12.51;C) $16.38;D) $11.48;Use the following to answer questions 174-175;(Appendix 4A) Sumptuous Beer Company manufactures beer in;two departments, Fermenting and Bottling. In the Fermenting Department;ingredients are placed in a large vat and fermented for three days. The beer is;then transferred over to Bottling where it is further purified and bottled.;Sumptuous uses a FIFO process cost system to collect costs in both departments.;On May 1, the Fermenting Department had 32,000 gallons;(units) in process. These gallons were 100% complete with respect to materials;(ingredients) and 80% complete with respect to conversion cost. During May;Fermenting started an additional 460,000 gallons into production. On May 31;Fermenting had 18,000 gallons in work in process. These gallons were 100%;complete with respect to materials and 60% complete with respect to conversion;cost.;174. What are the Fermenting Department's;equivalent units (gallons) of production related to materials for May?;A) 442,000;B) 460,000;C) 474,000;D) 492,000;175. What are the Fermenting Department's;equivalent units (gallons) of production related to conversion costs for May?;A) 459,200;B) 474,800;C) 477,200;D) 478,400;Use the following to answer questions 176-177;(Appendix 4A) Lahania Corporation uses a FIFO process;costing system to collect costs related to production. The following selected;information relates to production for April;Equivalent;units: Materials Conversion;Units;in process, April 1 0 2,500;Units;started and completed during April 32,000 32,000;Units;in process, April 31;8,000 1,500;Total;equivalent units 40,000 36,000;Materials Conversion;Costs;in work in process on April 1 $;50,400 $126,000;Costs;added to production during April;169,600 529,200;Total;cost $220,000 $655,200;All materials at Lahania are added at the beginning of the;production process. Conversion costs are incurred uniformly over the production;process. During April, Lahania completed 44,000 units.;176. What total amount of cost should be assigned;to the units completed and transferred out during April?;A) $642,830;B) $819,230;C) $833,360;D) $1,009,760;177. What total amount of cost should be;assigned to the units in work in process on April 30?;A) $55,970;B) $71,300;C) $151,520;D) $179,930;Use the following to answer questions 178-179;(Appendix 4A) The following information relates to the;Cutting Department of Kittina Corporation for the month of February. Kittina;uses a FIFO process costing system. All materials at Kittina are added at the;beginning of the production process.;Number;of units Percentage complete;with respect to conversion;Work in;process, February 1 18,000 10%;Units;started into production 160,000;Work in;process, February 28 7,000 40%;On February 1, the work in process inventory account;contained $55,620 of material cost and $123,120 of conversion cost. Cost per;equivalent unit for February was $3.10 for materials and $7.50 for conversion;costs.;178. What;total amount of cost should be assigned to the units completed and transferred;out during February?;A) $1,743,300;B) $1,812,600;C) $1,814,040;D) $1,922,040;179. What total amount of cost should be;assigned to the units in work in process on February 28?;A) $29,680;B) $42,700;C) $44,520;D) $53,200;Use the following to answer questions 180-181;(Appendix 4B) Zorn Company has a Custodial Services;department which services the company's Maintenance department and its two;operating departments. Costs of the Custodial Services department are allocated;to other departments on the basis of square feet of space occupied. The amount;of space occupied by each department is given below;Custodial;Services 500;square feet;Maintenance 2,000 square feet;Operating;Department 1 10,000;square feet;Operating;Department 2 8,000;square feet;Budgeted costs in the Custodial Services department total;$36,000.;180. If Zorn Company uses the step-down;method and allocates the Custodial Services costs first, the amount of this;cost allocated to the Maintenance department would be closest to;A) $3,512;B) $3,600;C) $9,000;D) $0;181. The amount of Custodial Services;department cost allocated to Operating Department 2 under the direct method;would be closest to;A) $14,400;B) $14,049;C) $16,000;D) $9,000;?;Use the following to answer questions 182-183;(Appendix 4B) Kahuna Financial Services Corporation has two;service departments and two operating departments. Selected information on the;four departments for last year are as follows;CPU;Hours Number of Employees;Service;departments;Data;Processing ? 15;Cafeteria 1,000 ?;Operating;departments;Investments 15,000 114;Loans 9,000 171;Kahuna allocates Data Processing cost first on the basis of;CPU hours. Kahuna then allocates Cafeteria cost on the basis of the number of;employees. Operating costs in Data Processing for last year were $870,000.;Operating costs in Cafeteria for last year were $200,000. No distinction is;made between variable and fixed costs.;182. If service department costs are;allocated using the direct method, how much service cost will be allocated from;Data Processing to Investments?;A) $435,000;B) $522,000;C) $528,000;D) $543,750;183. If service department costs are;allocated using the step-down method, how much service cost will be allocated;from Data Processing to Loans?;A) $313,200;B) $316,800;C) $326,250;D) $330,000;Use the following to answer questions 184-185;(Appendix 4B) Greek Corporation has two service departments;(Sigma and Delta) that provide service to each other and to two operating;departments (Chi and Omega). Sigma provides 25% of its service to Delta, 15% of;its service to Chi, and 60% of its service to Omega. Delta provides 8% of its;service to Sigma, 69% of its service to Chi, and 23% of its service to Omega.;Operating costs in Sigma are $90,000. Operating costs in Delta are $50,000.;Cost allocations are made starting with Sigma. No distinction is made between;variable and fixed costs.;184. If service department costs are;allocated using the direct method, what is the total amount of service cost;that will be allocated to Omega?;A) $84,500;B) $70,675;C) $72,125;D) $73,075;\;185. If service department costs are;allocated using the step-down method, what is the total amount of service cost;that will be allocated to Chi?;A) $48,000;B) $67,875;C) $63,525;D) $64,125;Use the following to answer questions 186-187;(Appendix 4B) Seidell Corporation has two service;departments, Administrative and Facilities, and two operating departments;Assembly and Customer Solutions.;Service;Department Operating;Department;Adminis-trative Facilities Assembly Customer Solutions;Departmental;costs $43,560 $54,720 $561,960 $253,030;Employee;hours 4,000 2,000 27,000 17,000;Space;occupied 1,000 2,000 37,000 1,000;The company uses the direct method to allocate service;department costs to operating departments. Administrative costs are allocated;on the basis of employee hours and Facilities costs are allocated on the basis;of space occupied.;?;186. The total amount of Administrative;Department cost allocated to the Assembly Department is closest to;A) $26,730;B) $25,568;C) $42,414;D) $23,522;187. The total Customer Solutions Department;cost after the allocations of service department costs is closest to;A) $269,175;B) $254,470;C) $270,593;D) $271,300;Use the following to answer questions 188-189;(Appendix 4B) Maute Clinic has two service departments;Administrative and Support, and two operating departments, Adult Medicine and;Pediatrics.;Service;Department Operating;Department;Adminis-trative Support Adult;Medicine Pediatrics;Departmental;costs $23,600 $51,480 $259,690 $288,790;Employee;hours 3,000 2,000 26,000 14,000;Space;occupied 3,000 2,000 38,000 6,000;The clinic uses the direct method to allocate service;department costs to operating departments. Administrative Department costs are;allocated on the basis of employee hours and Support Department costs are;allocated on the basis of space occupied in square feet.;188. The total amount of Administrative;Department cost allocated to the Adult Medicine Department is closest to;A) $13,636;B) $14,610;C) $20,382;D) $15,340;189. The total Pediatrics Department cost;after the allocations of service department costs is closest to;A) $302,436;B) $304,070;C) $304,136;D) $295,810;Use the following to answer questions 190-191;(Appendix 4B) Ockey Corporation uses the direct method to;allocate service department costs to operating departments. The company has two;service departments, Information Technology and Personnel, and two operating;departments, Fabrication and Customization.;Service;Department Operating;Department;Information;Technology Personnel Fabri-cation Customi-zation;Departmental;costs $26,880 $21,525 $251,210 $447,000;Computer;workstations 37 18 43 37;Employees 34 13 73 32;Information Technology Department costs are allocated on the;basis of computer workstations and Personnel Department costs are allocated on;the basis of employees.;190. The total amount of Information;Technology Department cost allocated to the two operating departments is;closest to;A) $26,880;B) $15,929;C) $58,119;D) $21,943;191. The total Fabrication Department cost;after service department allocations is closest to;A) $270,110;B) $277,969;C) $280,623;D) $274,308

 

Paper#40568 | Written in 18-Jul-2015

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