1) (10 points) Grant's Ironhorse Company manufactures model railroad cars. At the end of October, 2019 the accounting records showed the following:

Inventories:	Beginning	Ending
Direct Materials	$10,000	$5,000
Work-in-Process	15,000	20,000
Finished Goods	0	5,800
Other Information:
Direct Materials Purchases		40,000
Plant maintenance services		6,800
Plant supervisor's salary		31,500
Sales salaries		12,700
Delivery costs		3,100
Sales revenue		236,000
Utilities for plant		10,500
Rent on plant		23,000
Advertising		8,000
Direct labor		30,000

(a) Prepare a schedule of cost of goods manufactured for Grant's Ironhorse Company and

(b) Prepare an income statement for Grant's Ironhorse Company for the year ended October 31, 2019

2) (10 points) At the beginning of the year, Barrington Manufacturing had the following account balances:

Work-in-Process Inventory

2,000

Finished Goods Inventory

8,000

Manufacturing Overhead

0

The following additional details are provided for the year:

Direct materials placed in production	$80,000
Direct labor incurred	190,000
Manufacturing overhead incurred	300,000
Manufacturing overhead allocated to production	295,000
Cost of jobs completed	500,000

Write the journal entries and calculate the ending balances (you may use T accounts) for Work-in-Process Inventory, Finished Goods Inventory, and Manufacturing Overhead accounts (unadjusted).

3) (6 points) At the start of June, the Polishing Department of Corona Counters, Inc. had 15,000 units in beginning inventory. During the month, it received 25,000 units from the Machining Department. It started and completed 17,000 units and transferred 32,000 units to the Packaging Department. It had 8,000 units in ending Work-in-Process Inventory. Direct materials are added at the beginning of the process. Units in beginning Work-in-Process Inventory were 50% complete in respect to conversion costs. Units in ending Work-in-Process Inventory were 40% complete with respect to conversion costs.

Prepare the production cost report for the Polishing Department for the equivalent units of production for the month of June. Use the FIFO method.

4) (6 points) The Zakchari Company has six processing departments for refining sugarAffination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process, and materials are added at the beginning of each process. Data from August for the Recovery Department are as follows:

	Metric Tons
Beginning Work-in-Process Inventory	3,000
Transferred In	18,500
Ending Work-in-Process Inventory	6,500

In August, 15,000 metric tons were completed and sent to the Packaging Department. The ending Work-in-Process Inventory was 50% complete with respect to conversion costs. Prepare a production cost report for the Recovery Department to show the equivalent units for direct materials and conversion costs. The weighted-average method is used.

5) (5 points) Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system:

Materials managementallocated by number of purchase orders

Chemical processingallocated on metric tons

Moldingallocated on direct labor hours

Packagingallocated by number of units produced

The activity rates are as follows:

Materials management $12.00 Per purchase order

Chemical processing $7.50 Per metric ton

Molding $24.00 Per direct labor hour

Packaging $0.10 Per unit

Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. The order will also require four purchase orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product. Calculate the total production of the order.

6) (4 points) Reeds Paper Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October using the contribution margin format.

7) (5 points) Thrills Amusement Park provides a variety of attractions. Thrills sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $166,500 per month.

Compute the breakeven point in tickets and in sales dollars.

8) (5 points) Tranquility Care provides home healthcare services at an average price of $70 per hour and incurs variable costs of $45 per hour. Assume average fixed costs are $3,600 a month. (Round your answer to the nearest whole unit.)

1. What is the number of hours that must be billed to reach the breakeven point?

2. If the company desires to make a profit of $2,000, how many hours must be completed?

9) (4 points) Amarantha Corp. has provided the following data for the current year.

Units produced	2,500 units
Sales price	$200 per unit
Direct materials	$75 per unit
Direct labor	$65 per unit
Variable manufacturing overhead	$25 per unit
Fixed manufacturing overhead	$225,000 per year
Variable selling and administrative costs	$30 per unit
Fixed selling and administrative costs	$150,000 per year

Calculate the unit product cost using absorption costing and variable costing.