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1. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.

The journal entry to record the flow of costs into Department 1 during the period for direct materials is

a.

Materials 55,000

Work in ProcessDepartment 1 55,000

b.

Work in ProcessDepartment 1 55,000

Materials55,000

c.

Materials 100,000

Work in ProcessDepartment 1 100,000

d.

Work in ProcessDepartment 1 100,000

Materials100,000

2. The following production data were taken from the records of the Finishing Department for June:

Inventory in process, June 1 (35% completed)	4,900	units
Completed units during June	64,700	units
Ending inventory (56% complete)	3,400	units

The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is

a. 63,200 units

b. 68,100 units

c. 3,400 units

d. 59,800 units

3. Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

	Activity Cost		Activity Base
Procurement	$393,300		Number of purchase orders
Scheduling	232,500		Number of production orders
Materials handling	494,000		Number of moves
Product development	739,300		Number of engineering changes
Production	1,487,300		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	4,110	350	1,290	12	2,300	1,800
Tape drives	2,400	175	780	4	9,900	4,300
Wire drives	11,500	800	4,400	22	10,600	2,000

The activity rate for the scheduling activity cost pool is

a.$296.83 per production order

b.$175.47 per production order

c.$21.84 per production order

d.$65.23 per production order

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