A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced. Product Sales Value Feed $ 90,000 Flour 110,000 Starch 20,000 Total $ 220,000 How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.) Multiple Choice $0. $98,400. $90,000. $133,333. $240,000.
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced. Product Sales Value Feed $ 90,000 Flour 110,000 Starch 20,000 Total $ 220,000 How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.) Multiple Choice $0. $98,400. $90,000. $133,333. $240,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period,
unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were
produced.
Product Sales Value
Feed $ 90,000
Flour 110,000
Starch 20,000
Total $ 220,000
How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate
percentage to the nearest whole percent.)
Multiple Choice
$0.
$98,400.
$90,000.
$133,333.
$240,000.
A company has sales of $109,000; cost of goods sold of $69,870; and total direct expenses of $7,620. The department'
contribution to overhead is:
Multiple Choice
$101,380.
$77,490.
$62,250.
$31,510.
$39,130.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office
expenses are allocated to the two operating departments using different allocation bases. The following information is
available for the current period:
Office Expenses Total
Salaries
$ 45,000
Allocation Basis
Number of employees
Depreciation 23,000 Cost of goods sold
Advertising 46,000 Percentage of total sales
Department Number of employees Sales Cost of goods sold
Drilling 1,400
$ 344,000 $98,800
Grinding
516,000
161,200
Total
$860,000 $ 260,000
2,100
$22,000.
$18,000.
3,500
The amount of salaries that should be allocated to Drilling for the current period is:
Multiple Choice
$45,000.
$27,000.
$29,800.
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