Question :
71. A dairy allocates the cost of unprocessed milk to : 1256745
71. A dairy allocates the cost of unprocessed milk to the production of milk, cream, butter and cheese. For the current period, unprocessed milk was purchased for $240,000, and the following quantities of product and sales revenues were produced.
Product
Pounds
Price per Pound
Milk
100,000
$0.90
Cheese
50,000
2.20
Butter
20,000
1.00
Cream
10,000
3.00
How much of the $240,000 cost should be allocated to milk? A. $0B. $86,400C. $90,000D. $133,333E. $240,000
72. Bevo Beef Company uses the relative market value method of allocating joint costs in their production of beef products. Relevant information for the current period follows:
Product
Production in Pounds
Market Price/Pound
Sirloin
3,000
$5.00
Hamburger
10,000
2.00
Rib eye
4,000
4.75
Roast
6,000
3.50
The total joint cost for the current period was $43,000. How much of this cost should Bevo Beef allocate to sirloin?A. $0B. $5,909C. $8,600D. $10,750E. $43,000
Reference: 22_01
Joint products A and B are produced in a single operation from Material M. Three hundred gallons of Material M, costing $450, produced 200 gallons of Product A, selling for $2 per gallon, and 100 gallons of Product B, selling for $6 per gallon.
73. The portion of the $450 cost that should be allocated to Product A using the value basis of allocation is: A. $0B. $180C. $225D. $300E. $425
74. If the $450 cost of the 300 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A’s share would be:A. $0B. $180C. $225D. $300E. $450
75. Which of the following is an example of a performance measure of internal business processes that would be found in a balanced scorecard:
A. Product defect rates.
B. Number of new customers.
C. Employee satisfaction.
D. Return on investment.
E. Sales growth.
76. Which of the following is an example of a performance measure of the customer perspective that would be found in a balanced scorecard?
A. Product defect rates.
B. Number of new customers.
C. Employee satisfaction.
D. Return on investment.
E. Sales growth.
77. Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?
A. Percentage of on-time delivery.
B. Residual income.
C. Customer satisfaction.
D. Cycle time.
E. Employee turnover.
78. Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?
A. Percentage of sales from new customers.
B. Money spent on employee training programs.
C. Product costs.
D. Return on investment.
E. Money spent on research and development.
79. In the preparation of departmental income statements, the preparer completes the following steps in the following order:A. Identify direct expenses; allocate indirect expenses; allocate service department expenses.B. Identify indirect expenses; allocate direct expenses; allocate service department expenses.C. Identify service department expenses; allocate direct expenses; allocate indirect expenses.D. Identify direct expenses, allocate service department expenses, allocate indirect expenses.E. Allocate all expenses.
Reference: 22_02
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
White Division
Grey Division
Sales (net)
$200,000
$400,000
Salary expense
28,000
48,000
Cost of goods sold
100,000
159,000
The White Division occupies 20,000 square feet in the plant. The Grey Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000.
80. Gross profit for the White and Grey Divisions is:
White
Grey
A.
$ 72,000
$193,000
B.
$172,000
$352,000
C.
$100,000
$241,000
D.
$ 52,000
$163,000
E.
$ 72,000
$163,000
