QUIZ 4 ANSWERS - Universidad Iberoamericana UNIBE 1....

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Universidad Iberoamericana UNIBE 1. Consider the following: Work-in-process inventory, beginning 12,000 Manufacturing overhead, actual 400,000 Raw material used 230,000 Under-applied overhead 2,000 Direct labor 524,000 Work-in-process inventory, ending 28,000 What is the cost of goods manufactured that would be reported in a schedule of cost of goods manufactured? a. 1,168,000 b. 1,152,000 c. 1,136,000 d. 1,164,000 e. 1,166,000 The overhead applied to work in process was $398,000 (= $400,000 - $2,000). The cost of goods manufactured is equal to the raw material used, plus direct labor, plus applied overhead, plus beginning work in process, and less ending work in process. The cost of goods manufactured is $1,136,000 (= $230,000 + $524,000 + $398,000 + $12,000 - $28,000). 2. Consider the following schedule for allocating rent expense on the basis of square footage:
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The rent expense was $42,000 and there was no beginning or ending balance in Work-in-Process Inventory. Using a two-stage cost allocation process, what was the amount of rent charged to each unit of production of Department A if the Maintenance and Purchasing departments spend 60% of their time, respectively, performing maintenance and purchasing supplies for Department A? a. $1.925 b. $0.315 c. $1.89 d. $2.10 e. $2.925 Initial rent allocation: Maintenance Department, 0.0625%, Purchasing Department, 0.0625%, Production Department A, 0.375%, and Production
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This note was uploaded on 08/10/2011 for the course ECON 123 taught by Professor Other during the Spring '11 term at Pontificia Universidad Catolica Madre y Maestra.

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QUIZ 4 ANSWERS - Universidad Iberoamericana UNIBE 1....

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