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1. The Lakeside Company uses a weighted-average process costing system. The following data are available:

Beginning inventory		-0-
Units started in production		21,000
Units finished during the period		16,500
Units in process at the end of the period (complete as to materials, complete as to labor and overhead)		4,500
Cost of materials used	$	41,000
Labor and overhead costs	$	43,710

Unit cost of material is:

a$2.48.

b$2.30.

c$2.08.

d.$1.95.

2. Chang Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Plain and Fancy, about which it has provided the following data:

	Plain				Fancy
Direct materials per unit	$	24.90			$	59.70
Direct labor per unit	$	5.40			$	27.00
Direct labor-hours per unit		0.20				1.00
Annual production		55,000				35,000

The company's estimated total manufacturing overhead for the year is $1,255,800 and the company's estimated total direct labor-hours for the year is 46,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures	Estimated Overhead Cost
Supporting direct labor (DLHs)		$	598,000
Setting up machines (setups)			271,400
Parts administration (part types)			386,400
Total		$	1,255,800

	Expected Activity
	Plain		Fancy		Total
DLHs	11,000		35,000		46,000
Setups	1,734		980		2,714
Part types	640		280		920

The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:

a$5.46.

b.$2.60.

c.$13.47.

d.$18.93.

3. Upton Company produces two main products and a by-product out of a joint process. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Upton has employed the physical-volume method to allocate joint production costs to the two main products. The net realizable value of the by-product is used to reduce the joint production costs before the joint costs are allocated to the main products. Data regarding Upton's operations for the current month are presented in the chart below. During the month, Upton incurred joint production costs of $4,213,200. The main products are not marketable at the split-off point and, thus, have to be processed further.

	First Main Product			Second Main Product			By-Product
Monthly output in pounds		114,000			180,000			78,000
Selling Price per pound	$	40		$	14		$	2
Separable process costs	$	684,000		$	792,000

The amount of joint production cost that Upton would allocate to the Second Main Product by using the physical quantities method to allocate joint production costs would be:

a.$2,184,000.

b.$2,244,000.

c. $2,484,000.

d. $2,579,510.

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