1. Find out the categories in Activity based costing:

1.Indirect consumables

2. Inspection of products

3.Plant security

4.Design of the product

5.Advertising costs

6.Building maintenance

2. A firm incurred costs of $50,000 for direct materials (raw) purchased. Direct labor was $60,000 and factory overhead was $35,000 for May.

Inventories were as follows:

Raw materials beginning $14,000; raw materials ending $10,000

Work-in-process beginning $24,000; work-in-process ending $36,000

Finished goods beginning $10,000; finished goods ending $25,000

Calculate the cost of goods manufactured for May.

3.Cash budget: July and August

Forecast sales

May$12,000

June15,000

July$16,000

August $12,000

Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale

Accounts payable are paid 100% 2 months after the purchase

Expected A/P

May$5,000

June$6,000

July$7,000

August $8,000

In addition to purchases, there are utility bills of $1,500 each month

Beginning cash for July is $3,800

4.Cube Ltd uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal.

May1Purchased $21,600 of merchandise on credit from Kane, Inc., terms n/30.

14Purchased $470 of store supplies from Chang Company on credit, terms n/30.

17Purchased $490 of office supplies on credit from Man Company, terms n/30.

28Purchased store supplies from Par for $136 cash.

Record in purchase journal.