Reference no: EM132713437
Questions -
Question 1 - Towson Company manufactures book cases, and each requires 32 board feet of lumber. Towson expects that 1,800 and 1,550 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 30% of the next month's production needs. Use this information to find the number board feet of lumber that Towson Company should buy in June.
Question 2 - Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $115,000 and Maintenance Services has costs of $115,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:
Computer Operations 4
Maintenance Services 4
Mixing Department 7
Packaging Department 7
Question 3 - 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 $115,000 and Maintenance Services has costs of $195,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? (round to closest whole dollar) Employees are:
Computer Operations 3
Maintenance Services 3
Mixing Department 5
Packaging Department 5
Question 4 - Adelphi Company provides the following information for their first year of operations in 2018:
Sales, 8,000 units @ $20 each
Total production, 13,000 units
Production costs per unit:
Direct materials $2.00
Direct labor $3.00
Variable overhead $1.00
Fixed manufacturing overhead $8,000
Adelphi Company uses absorption costing. Use this information to determine for Adelphi Company the FY 2018 Cost of Goods Sold.
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