The Copy Department in the College of Business at State

question 97

Multiple Choice

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department.The following budget has been prepared for the year. If the Copy Department uses a dual-rate for allocating its costs,how much cost will be allocated to the Economics Department,assuming the Economics Department actually made 1,500,000 copies during the year?

• A)$77,500.
• B)$92,500.
• C)$132,500.
• D)$112,500.

Calculate the effect of inventory valuation methods on financial statements.

Understand the concept of realized holding gains and their calculation.

Learn how to apply the lower of cost or market rule to inventory valuation.

Understand how LIFO layers affect inventory valuation and financial reporting.