Business Finance
need in 45 min

Question Description

Help me study for my Business class. I’m stuck and don’t understand.

Support departments (Points : 3)  are responsible for manufacturing the products sold to customers.
 work directly on the products of the firm.
 provide services directly to customers.
 provide essential services to the producing departments.

2. (TCO 7) Which would be the most appropriate base for allocating the costs of the housekeeping department? (Points : 3)
 Machine hours
 Direct labor hours
 Square feet
 Number of employees

3. (TCO 7) If the costs of support departments are NOT allocated to producing departments, (Points : 3)
 product costs would be understated.
 GAAP requirements would not be met.
 managers of producing departments may tend to overconsume services.
 All of the above

4. (TCO 7) Joint costs are allocated because of (Points : 3)
 financial reporting requirements.
 tax reporting requirements.
 IMA requirements.
 Both A and B

5. (TCO 7) Which method allocates support department costs? (Points : 3)
 Direct allocation method
 Reciprocal allocation method
 Sequential allocation method
 All of the above

6. (TCO 7) The cost of crude oil used in producing gasoline products is an example of (Points : 3)
 joint costs.
 a by-product.
 joint products.
 common cost allocation.

7. (TCO 7) A joint cost allocation method that would assign the same amount of cost per unit to two joint products that sell for $10 and $40, respectively, is the (Points : 3)
 sales-value-at-split-off method.
 direct allocation method.
 net realizable value method.
 physical unit method.

8. (TCO 7) DeeDee Corporation manufactures the following products in its factory. $400,000 of costs were incurred.

Product

Units Produced

Weight per Unit (lb)

Selling Price per Unit

A

2,500

10

$6

B

5,000

8

$12

C

7,500

6

$12

D

10,000

4

$6


How much joint cost would be allocated to Product B based on the physical units method? (Points : 3)
 $420,000
 $80,000
 $106,667
 $400,000

9. (TCO 7) Sally Corporation manufactures four products. The following data were provided by the cost accountant for the current year.

Product

Units Produced

Sales Value at Split-Off

J

 15,000

$10,000

K

 9,000

$5,000

L

 24,000

$6,000

M

 12,000

$9,000

Total Joint Processing Costs

$24,000


Which is the amount of joint costs assigned to Product J using the sales-value-at-split-off method? (Points : 3)
 $8,000
 $6,000
 $24,000
 $2,667

10. (TCO 7) Lamb Inc. processes wool into four grades of yarn as follows.

Product

Yards Produced

Sales Value at Split-Off

Merino Wool

 75,000

$56,250

Wool Singles

 200,000

$180,000

Superwash Wool

 100,000

$105,000

Plied Wool

 125,000

$127,500

Total Joint Processing Costs

$300,000


Which is the amount of joint costs assigned to Superwash Wool using the constant gross margin percentage method? (Points : 3)
 $300,000
 $67,200
 $37,800
 $192,000

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