1. Given: Department A 8,000 sq. ft., Department B 5,000 sq., and Department C 6,000 sq. ft. The percent of overhead expenses applied to Department C to the nearest whole will be: a) 68% b) 32% c) 26% d) 42% e) None of these 2. With Department A sales of $200,000, Department B sales of $600,000, and overhead expense to be allocated of $25,000, the distribution of overhead to Department A based on sales is: a) $18,750 b) $25,000 c) $2,600 d) $6,250 e) None of these 3. Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is: a) $28.00 b) $12.00 c) $21.00 d) $3.50 e) None of these 4. Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is: a) $7,600 b) $7,280 c) $3,120 d) $3,400 e) None of these 5. Melissa’s Dress Shop’s inventory at cost on January 1 was $19,400. Its retail value was $36,000. During the year, additional net purchases at a cost of $42,600 were brought in. Its retail value was $64,000. The net sales for the year were $70,000. Melissa’s inventory at cost by the retail method is: a) $30,000 b) $18,600 c) 18,000 d) $12,400 e) None of these 6. Which one of the following builds up no cash value? a) Universal Life b) Straight-Life c) Term d) 20-payment life e) None of these 7. Abby Kaminsky, age 32, has decided to take out a limited payment life policy. She chose this since she expects her income to decline in future years. Abby has decided to take out a 20-year pay life policy with a coverage amount of $200,000. Using the tables in her handbook, her annual premium will be: a) $1,158 b) $2,316 c) $2,136 d) $1,518 e) None of these 8. Mia's office building with a $300,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $120,000. Using the tables in the handbook, the total annual is: a) $1,046.40 b) $990.00 c) $1,064.40 d) $1,064.04 e) None of these 9. Bill Blum insured his hardware store with a fire insurance policy for$88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was: a) $739.20 b) $793.20 c) $591.36 d) $616.00 e) None of these 10. Calculate the optional bodily injury cost for the following: Class 10; optional bodily injury:100/300/50 a) $94 b) $144 c) $108 d) $187 e) None of These
