ACCT 346 Course Great Wisdom / tutorialrank.com ACCT 346 Course Great Wisdom / tutorialrank.com | Page 10

1. Question :
(TCO 3) What are transferred-in costs? Which departments will never
have transferred-in costs?

2. Question :
(TCO 7) Computer Boutique sells computer equipment and home
office furniture. Currently, the furniture product line takes up
approximately 50% of the company's retail floor space. The president
of Computer Boutique is trying to decide whether the company
should continue offering furniture or just concentrate on computer
equipment. If furniture is dropped, salaries and other direct fixed costs
can be avoided. In addition, sales of computer equipment can increase
by 13%. Allocated fixed costs are assigned based on relative sales.
Computer
Home Office
Equipment
Furniture

3. Question :
(TCO 4) The following monthly data are available for RedEx, which
produces only one product that it sells for $84 each. Its unit variable
costs are $28 and its total fixed expenses are $64,960. Sales during
April totaled 1,600 units.
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