4. Select the best answer to the following multiple choice question. To discourage excessive use of a support department, management might
   1. Allocate costs based on user department usage
   2. Allocate a fixed amount to each department regardless of use
   3. Expense fixed costs of support departments directly to the income statement
   4. Not allocate any costs of the support department

Explain why you made this choice

5. Girard Enterprises processes 18,000 kilograms of raw coffee beans to product two products. The first product is roasted coffee that is sold for $25.00 per kilogram. The second product is the shell of the bean, called the husk. The husk is sold as a fertilizer for plant crops. Because it is sold for only $4.00 per kilogram, it is a by-product of coffee processing. The following information is available for the month of April:

Activity in kilograms	Roasted Coffee	Husks
Production	15,000	2,200
Sales	14,400	2,000
Beginning Inventory (April 1)	290	0

Costs to process the raw coffee beans were $190,000

What is the cost of roasted coffee inventory at the end of April using the Production method of by product costing? (Assume Girard uses first-in-first-out inventory costing)