Question :
81. Bost Products Inc.Bost Products Inc. manufactures plastic products and uses : 1291667
81. Bost Products Inc.Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
Numberof units
ProductionCosts
Beginning work-in-process (60% complete)
20,000
$ 72,000
Units started in the current period
300,000
1,809,000
Ending work-in-process (35% complete)
10,000
Refer to the Bost Products Inc. information above. If Bost uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost of the ending work-in-process inventory in December? A. $57,700B. $20,195C. $22,435D. $21,000
82. Bost Products Inc.Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
Numberof units
ProductionCosts
Beginning work-in-process (60% complete)
20,000
$ 72,000
Units started in the current period
300,000
1,809,000
Ending work-in-process (35% complete)
10,000
Refer to the Bost Products Inc. information above. If Bost uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost of goods transferred out in December? A. $1,860,805B. $1,860,000C. $1,877,500D. $1,858,565
83. Which of the following statements about service department costs is not true? A. Service department costs include the costs of providing services to other departments within an organization.B. Service department costs are not allocated to other service departments.C. Service department costs should be allocated using an allocation base or cost driver related to the costs incurred.D. Service department costs do not include the costs of providing services to external customers.
84. Companies allocate service department costs to other departments for all of the following reasons except: A. to improve decisions concerning how to use scarce resources.B. to hold departments that consume the resources accountable for the services they consume.C. to provide more accurate product cost information.D. to determine what the salary of service department employees should be.
85. Which of the following would be classified as a service department? A. The bottling department of a soft drink manufacturer.B. The painting department of an automobile manufacturer.C. The accounting department of a manufacturing company.D. The claims processing department of an insurance company.
86. Danville ManufacturingThe Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
Service
Service
Production
Production
Dept. 1
Dept. 2
Dept. 1
Dept. 2
Department Costs
$24,000
$16,000
$80,000
$75,000
Number of Transactions
6,000
6,000
6,000
12,000
Square Feet Occupied
4,000
3,000
4,000
6,000
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.Assuming that Danville Manufacturing Company allocates service department 1 costs first, the amount of service department 1 costs allocated to service department 2 under the step-down method would be: A. $ 0B. $12,000C. $ 6,000D. $ 2,000
87. Danville ManufacturingThe Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
Service
Service
Production
Production
Dept. 1
Dept. 2
Dept. 1
Dept. 2
Department Costs
$24,000
$16,000
$80,000
$75,000
Number of Transactions
6,000
6,000
6,000
12,000
Square Feet Occupied
4,000
3,000
4,000
6,000
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.Assuming that Danville Manufacturing Company allocates service department 1 costs first, the amount of service department 2 costs allocated to production department 1 under the step-down method would be: A. $3,200B. $4,000C. $3,000D. $2,400
88. Danville ManufacturingThe Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
Service
Service
Production
Production
Dept. 1
Dept. 2
Dept. 1
Dept. 2
Department Costs
$24,000
$16,000
$80,000
$75,000
Number of Transactions
6,000
6,000
6,000
12,000
Square Feet Occupied
4,000
3,000
4,000
6,000
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.Assuming that Danville Manufacturing Company uses the direct method of allocating service costs, the amount of service department 1 costs allocated to production department 1 would be: (If necessary, round your answer to the nearest whole number.) A. $ 5,143B. $ 3,000C. $12,000D. $ 8,000
89. Danville ManufacturingThe Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
Service
Service
Production
Production
Dept. 1
Dept. 2
Dept. 1
Dept. 2
Department Costs
$24,000
$16,000
$80,000
$75,000
Number of Transactions
6,000
6,000
6,000
12,000
Square Feet Occupied
4,000
3,000
4,000
6,000
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.Assuming that Danville Manufacturing Company uses the direct method of allocating service costs, the amount of service department 2 costs allocated to producing 2 would be: A. $4,800B. $4,364C. $9,600D. $5,600
