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Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows:   ​ Costs ​ Units Materials Conversion Work in process, May 1 25,000 $  68,750 $167,650 Started during May 100,000 300,000 903,350 Work in process, May 31 10,000 ​ ​ Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.  How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO method?

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month’s planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. ​ The beginning finished inventory is valued at $31,320. ​ After preparing a finished goods inventory budget for August, what is the cost of goods sold for August?

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job’s use of the associated driver.

Causal factors are variables or activities within a producing department that stimulate the incurrence of support costs.

A flexible-based budgeting system

Abnormal spoilage is treated differently from normal spoilage in what way?

Allocation increases total costs.

Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ What is the break-even point in units using ABC?

Activity-based budgeting recognizes interdependencies among departments.

In a __________ costing system, production costs are accumulated by process.