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ACT 5741 Final Exam Solution (Part - II)




Question;If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Question:1 "The Frackle Department is the first of a two-stage production process. Spoilage is identified when theunits have completed the Forming process. Costs of spoiled units are assigned to units completed andtransferred to the second department in the period spoilage is identified. The following informationconcerns Forming's conversion costs in May:Units Conversion costsBeginning work-in-process (50% complete) 2,000 $10,000Units started during May 8,000 75,500Spoilage?normal 500Units completed & transferred 7,000Ending work-in-process (80% complete) 2,500Using the weighted average method, what was Forming's conversion cost transferred to the second production department?" Question 2BadBoy, Inc. makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data was compiled by the accountant before making any allocations:Product X Product YQuantity produced 10,000 20,000Direct manufacturing labor hours 15,000 5,000Setup hours 500 1,500The total cost of setting up manufacturing processes and equipment is $400,000. The company uses ajob-costing system with a single indirect cost rate. Under this system, allocated costs were $300,000 and$100,000 for X and Y, respectively. If an activity-based system is used, what would be the allocatedcosts for each product?Product X =?? Product Y =???Question 3 Universal Company has made changes in its inventory handling policies that are expected to increase turnover from 7 to 8 times per year. Unity's budgeted sales and costs of sales for the next year are $42 million and $28 million, respectively. At a 6% interest rate, what are Unity's expected savings from the lower inventory level? Question 4 Para Co. is reviewing the following data relating to an energy saving investment proposal:Cost $50,000Residual value at the end of 5 years 10,000Present value of an annuity of 1 at 12% for 5 years 3.60Present value of 1 due in 5 years at 12% 0.57What would be the annual savings needed to make the investment realize a 12% yield?


Paper#40942 | Written in 18-Jul-2015

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