1) Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:

A B

Direct materials used $270,000 Beginning work in process $40,000

Direct labor 200,000 Ending work in process 20,000

Manufacturing overhead 300,000 Beginning finished goods 50,000

Operating expenses 350,000 Ending finished goods 30,000

A) $750,000 $790,000

B) $770,000 $750,000

C) $790,000 $810,000

D) $770,000 $790,000

2) Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

	Project Soup		Project Nuts
Initial investment	$400,000		$600,000
Annual net income	30,000		46,000
Net annual cash inflow	110,000		146,000
Estimated useful life	5 years		6 years
Salvage value	-0-		-0-

The company requires a 10% rate of return on all new investments.

	Present Value of an Annuity of 1
Periods		9%		10%		11%		12%
5		3.890		3.791		3.696		3.605
6		4.486		4.355		4.231		4.111

The annual rate of return for Project Soup is:

A) 55%.

B) 7.5%.

C) 27.5%.

D) 15.0%.