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Acc650 Module 7 - Quiz Product Costing Systems and Cost Allocation

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ACC650 Module 7 - Quiz Product Costing Systems and Cost Allocation

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1) Indiana Company incurred the following costs during the past year when planned production and actual production each totaled 20,000 units:
a. Direct material used $280,000
b. Direct labor $120,000
c. Variable manufacturing overhead $160,000
d. Fixed manufacturing overhead $100,000
e. Variable selling and administrative costs $60,000
f. Fixed selling and administrative costs $90,000
g. If Indiana uses variable costing, the total inventorial costs for the year would be:
h. $400,000. $460,000 $560,000. $620,000. $660,000.
2) Garage Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the production of 20,000 gallons of P and 60,000 gallons of Q. Garage can sell P and Q at split-off for $2.20 per gallon and $2.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows:
i. P Q Separable processing costs $15,000 $35,000
Sales price (per gallon) if processed beyond split-off $3 $4
The joint cost allocated to Q under the relative-sales-value method would be:
b. $40,000 $62,400. $64,000. $65,600. Some other amount.

3) When allocating joint costs, Weinberg calculates the final sales value of the various products manufactured and subtracts appropriate separable costs. The company is using the:
a. Gross margin at split-off method. Reciprocal-accounting method. relative-sales-value method. physical-units method. net-realizable-value method.…...

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