1. Complete Problem 5- 33 using the FIFO method of process costing. 2. If you did Problem 5- 33, explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the mixing department under the weighted- average method and the FIFO method. Should CBC’s managers choose the weighted- average method or the FIFO method? Explain briefly.

Required
1. Using 2012 data as the cost bases, show the amount of the 2013 advertising cost ($ 1,900,000) that would be allocated to each of the divisions under the following criteria:
a. Dickens’s allocation method based on number of cars sold b. The stand- alone method
c. The incremental- allocation method, with divisions ranked on the basis of dollars spent on advertising in 2012
2. Which method do you think is most equitable to the divisional sales managers? What other options might President Dave Dickens have for allocating the advertisingcosts?

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Sales Location East West North South Actual Number of Cars Sold in 2012 3,900 1,040 2,730 5,330 13,000 Actual Advertising Cost Incurred in 2012 S 282,750 435,000 652,500 804,750 $2,175,000