1. In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?

Multiple Choice

• Cost of ending work in process inventory

• Cost of ending finished goods inventory

• Cost of units transferred out

• Cost of beginning work in process inventory

2.

Job 910 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials	$	2,463
Direct labor-hours		79	labor-hours
Direct labor wage rate	$	16	per labor-hour
Machine-hours		137	machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $17 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Multiple Choice

• $6,056

• $3,727

• $6,896

• $3,380

3.

The Melville Corporation produces a single product called a Pong. Melville has the capacity to produce 60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows:

Direct materials	$	15
Direct labor	$	12
Variable manufacturing overhead	$	8
Fixed manufacturing overhead	$	9
Variable selling expense	$	8
Fixed selling expense	$	3

The regular selling price for one Pong is $80. A special order has been received by Melville from Mowen Corporation to purchase 6,000 Pongs next year. If this special order is accepted, the variable selling expense will be reduced by 75%. However, Melville will have to purchase a specialized machine to engrave the Mowen name on each Pong in the special order. This machine will cost $9,000 and it will have no use after the special order is filled. The total fixed manufacturing overhead and selling expenses would be unaffected by this special order. Assume that direct labor is a variable cost.

Assume Melville anticipates selling only 50,000 units of Pong to regular customers next year. At what selling price for the 6,000 special order units would Melville be financially indifferent between accepting or rejecting the special order from Mowen?

Multiple Choice

• $51.50 per unit

• $37.00 per unit

• $38.50 per unit

• $49.00 per unit

4.

The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 5 years. The company uses a discount rate of 14% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is $395,850. (Ignore income taxes.)

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $79,170

• $55,419

• $115,307

• $395,850