1.IvanhoeForge manufactures saddles for show horses. The company has received a special order for365saddles for an international competition. Each of these saddles would include the specialized logo of the competition. Last yearIvanhoeproduced785saddles, and the company has the capacity to produce1150saddles per year.Ivanhoe's saddles normally sell for $725each, but the special offer is for $253675($695per saddle). The controller has provided information to management that estimates the variable cost per saddle is $460; fixed manufacturing overhead is $85/saddle. Of the fixed costs assigned to this special order, $16150is for the specialized logos, the remainder is attributable to costs that will be incurred regardless of whether the special order is produced. What is the operating income generated by the special order?

$69625

$85775

$54750

$38600

2.During the current year,WildhorseCorporation purchased a warehouse for $1220000. In order to pay for the warehouse,Wildhorsesold its investment in another company's common stock costing $920000for $1421000. What amount is reported inWildhorse's investing section of its statement of cash flows?

$920000

$201000

$1220000

$0

3.Micker Boots produces cowboy boots, Its Raw Materials account contains only direct materials. Ifthe ending balance in Raw Materials Inventory is $4700, $55000was purchased, and $56000was transferred to Work in Process Inventory during the period, what was the amount in beginning inventory?

$3700

$5700

$1000

$4700

4.Crane, Inc. applies overhead cost based on direct labor hours. In completing the200units in job #120, the company incurred $12600in direct materials and540direct labor hours at $16per hour. The predetermined overhead rate is $5per direct labor hour. What is the total cost of the units in job #120?

$22240

$21240

$23940

$16800

5, Bonita's Manufacturing had underapplied overhead totaling $4500during the period. To dispose of this underapplied overhead,Bonitashould

increase the Work in Process account by $4500.

decrease the Work in Process account by $4500.

increase the Cost of GoodsaccountSold by $4500.

decrease the Cost of GoodsaccountSold by $4500.