Reference no: EM132432142

Questions -

Q1. Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $165,000 and Maintenance Services has costs of $175,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? Employees are:

Computer Operations 2

Maintenance Services 4

Mixing Department 7

Packaging Department 5

Q2. Adelphi Company provides the following information for their first year of operations in 2018:

Sales, 8,000 units @ $17 each

Total production, 12,000 units

Production costs per unit:

Direct materials $3.00

Direct labor $4.00

Variable overhead $2.00

Fixed manufacturing overhead $11,000

Adelphi Company uses absorption costing. Use this information to determine for Adelphi Company the FY 2018 Cost of Goods Sold.