Question

upiter Manufacturing began business on January 1, 2014. During its first year of operation, Jupiter 50) worked on five industrial jobs, and reported the following information at year-end Job 5 1,500 800 200 Not 3,500 4,000 1,000 12,000 20,000 13,000 12,000 1,500! 7,500 Direct Materials Direct Labor Allocated Mfg. Overhead-I- 6,000 Jun 30 Sep Oct 15Novl completed Job completed: Job sold: Revenues: N/A N/A Not sold N/A Not sold | N/A Jul iol 25,00039,000 Sep 12 | Jupiter's allocation of overhead costs left a debit balance of $1,200 in the Manufacturing Overhead account which was adjusted to zero at year-end. What was the amount of gross profit earned in 2014? D) $16,000 A) $14,800 B) $17,200 C) $1,700 51) 51) The Assembly Department of Smart Inc, manufacturer of computers, had 500 units of beginning inventory in the month of September and 2,000 units were transferred to it by the Production Department. The Assembly Department completed 1,000 units during the month and transferred them to the Packaging Department. Calculate the total number of units accounted for by the Assembly Department if it had 1,500 units in ending inventory D) 1,500 units B) 2,000 units C 500 units A) 2,500 units 52) includes the number of units completed and transferred out 52) In a production cost report, of a process and the number of units remaining in ending work-in-process. B) total units accounted for D) total units estimated for A) total units budgeted for C) total units to account for 53) 53) Quality Stereo Company has provided the following information regarding its activity-based costing system: . Purchasing department costs are allocated based on purchase orders and the cost allocation rate is $75 per purchase order. . Assembly department costs are allocated based on the number of parts used and the cost allocation rate is $1.00 per part. Packaging department costs are allocated based on the number of units produced and the allocation rate is $2.00 per unit produced. Each stereo produced has fifty parts, and the direct materials cost per unit is $70. There are no direct labor costs. Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all. What is the total cost for the 1,000 stereos? D) $125,750 C) $122,000 B) $123,750 A) $55,750

Answer 1

Ques 1

A.$14800

Sales Revenue:
Job 1	$25,000
Job 2	39,000	$64,000
Less: Cost of Goods Sold:
Job 1 ($1,000 + $12,000 + $1,500)	14,500
Job 2 ($7,500 + $20,000 + $6,000)	33,500
Underallocated overhead costs	1,200	-49,200
Gross profit	$14,800

Ques 2

a.2500 units

beg inventory = 500 + units tfd = 2000 units

Ques 3

b. Total units accounted for

these are the units which are started and completed in the production process

Ques 4

d.125750

Direct materials $70,000

Overheads

Purchasing dept costs $3,750

Assembly dept costs $50,000

Packaging dept costs $2,000

Total costs $125,750