Question

Question:1

True or False: For a sporting equipment manufacturer, production department overheads (which are largely driven by production labour costs) and sales department overheads (which are largely driven by number of customers) would be grouped into a single cost pool for the purpose of assigning indirect costs.

True

False
Question: 2

Inventory at the end of January was 400 units. During January 600 units were purchased and 300 units were used in the manufacturing process. How many units were in inventory on January 1st?

700 units

500 units

400 units

100 units

Question:3

True or false: Management accountants will require the assistance of front-line managers in the development of a costing system - for example.... to develop homogeneous "cost pools" of indirect costs.

True

False

Question:4

Company "B" manufacturers 2 types of running shoes (shoe "X" & shoe "Y"), each

using a distinct manufacturing process - both processes are located in the same plant building Plant overheads totaled $258,000 last September, and include such items as heat,

lighting and rent. On a square footage basis, shoe "X" uses 40% of the plant while

shoe "Y" uses the remaining 60%.

To ensure costing accuracy, the September plant overhead costs assigned to each product line should be

$ 103,200 to "X" & $154,800 to "Y"

$103.200 to "Y" & $154,800 to "X"

O $129,000 to "X" & $129.000 to "Y"

$103,000 to "X" & $154,000 to "Y"

please answer fastly.

Answer 1

Question 1

Answer : False : as the both the department have the largely driven different base, so it could not be single cost pool for the purpuse of indirect cost.

Question 2

Answer : closing stock = opening stock + Purchase - used in process

400=opening stock +600- 300

400 = opening stock +300

opening stock = 400 - 300

opening stock = 100 units

Question 3

Answer : false :   Management accountants will require the assistance of front-line managers in the development of a costing system - for example.... to develop homogeneous "cost pools" of indirect costs.

Question 4

Answer :  $ 103,200 to "X" & $154,800 to "Y"

As On a square footage basis, shoe "X" uses 40% of the plant while

shoe "Y" uses the remaining 60%.

so overhead assign to "x" shoe $ 258000*40/100= $ 103200

Overhead assign to "y" shoe $ 258000 *60/100= $ 154800