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Question 1
The following cost data pertain to the operations of Left-hand Department Stores, Inc., for the month of December.
Corporate legal office salaries
$74,000
Shoe Department cost of sales, Brentwood Store
$35,000
Corporate headquarters building lease
$78,000
Store manager's salary Brentwood Store
$14,000
Shoe Department sales commissions, Brentwood Store
$5,000
Store utilities, Brentwood Store
Shoe Department manager's salary, Brentwood Store
$3,000
Central warehouse lease cost
$10,000
Janitorial costs, Brentwood Store
$8,000
The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.
What is the total amount of the costs listed above that are direct costs of the Shoe Department?
Question 2
Dewey Company uses the weighted-average method in its process-costing system. The first processing department, the Welding Department, started the month with 15,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $19,200. An additional 86,000 units were started into production during the month. There were 13,000 units in the ending work-in-process inventory of the Welding Department that were 60% complete with respect to conversion costs. A total of $575,360 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is
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