1. The budgeted cell conversion cost rate includes which of the following?

a.direct labor, direct materials, and factory overhead

b.only direct labor and factory overhead

c.only direct labor and direct materials

d.only factory overhead

2. The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
	Year 2	Year 1
Total current assets	$624,821	$550,864
Total investments	63,717	48,626
Total property, plant, and equipment	937,144	652,257
Total current liabilities	102,291	89,040
Total long-term liabilities	318,604	240,813
Preferred 9% stock, $100 par	97,464	97,464
Common stock, $10 par	541,098	541,098
Paid-in capital in excess of par-common stock	62,131	62,131
Retained earnings	504,094	221,201

Using the balance sheets for Kellman Company, if net income is $106,952 and interest expense is $43,131 for Year 2, and market price is $39, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?

Select the correct answer.

a.10.06

b. 1.81

c. 21.55

d. 10.43

3,

Based on the following data for the current year, what is the number of days' sales in inventory?

Net sales on account during year	$467,605
Cost of goods sold during year	154,097
Accounts receivable, beginning of year	43,369
Accounts receivable, end of year	52,343
Inventory, beginning of year	36,453
Inventory, end of year	42,074

Do not round interim calculations. Round your final answer up to the nearest whole day.

Select the correct answer.

a. 365 days

b. 113 days

c. 93 days

d. 4 days

4.

Based on the following data for the current year, what is the number of days' sales in receivable?

Net sales on account during year	$492,196
Cost of goods sold during year	182,117
Accounts receivable, beginning of year	48,557
Accounts receivable, end of year	46,485
Inventory, beginning of year	81,573
Inventory, end of year	116,169

Round your answer up to the nearest whole day.

Select the correct answer.

a. 73 days

b. 86 days

c. 35 days

d. 135 days