Company X owns two brands: A and B. Operating income for each product last year is as follows:

If the company discontinues product B, one administrative position could be eliminated, saving the company $5000. Assuming no change in the sales of product A, what effect would discontinuing product B have on the company’s operating income?

Company X has two main

departments – A and B - and two support departments - HR and Maintenance. The

company allocates support department costs in both departments using headcount

as a basis for allocation, as per the following data:

Which of the following sentences are TRUE?

i. 

Transferred-in costs are incurred in

previous departments and are carried forward to subsequent departments

ii. 

Transferred-in costs are conversion

costs added at the beginning of the process

iii. 

Transferred-in costs are costs of

beginning inventory added at the beginning of the process

iv. 

Transferred-in costs are treated as a

separate direct material added at the beginning of the process

Company X uses WA method in

process costing and has 2 departments. This question is related to department

2. Direct materials 1 are added at 40% of the process, Direct Materials 2 are

added evenly between 50% and 70% of the process and conversion costs are added

evenly during the process.

Company X produces three products

from the same process: A, B and C. Joint product costs are $105029.

Company X has two main departments – PW and PC - and two

support departments - SM and SP. The company is interested in using the

reciprocal allocation method. The following data from operations were collected

for analysis:

Budgeted manufacturing overhead costs:

• Support Dept SM = $660000
• Support Dept SP = $507729
• Operating Dept PW = $1320000
• Operating Dept PC = $880000

Services provided:

• By SM (budgeted labor-hours):

• to

  SP = 2200

• to

  PW = 15200

• to

  PC = 10000

• By SP (Number of employees serviced):
• SM = 18
• PW = 78
• PC = 50

Which of the following

linear equations represents the complete reciprocated cost of the SP department?

Which

of the following sentence is TRUE?

Company X uses WA method in process costing and presented

the following information:

• BWIP = 1500 physical units (20%

  completed for CC)

• Units started = 10000 physical units
• Units completed = 6684 physical units

• EWIP = 3000 physical units (80%

  completed for CC)

• Normal spoilage rate = 10%
• Inspection point = 70%

Which of the following

sentence is TRUE?

Which sentence is TRUE?