24.On August 1, Shead Corporation had $30,400 of raw materials on hand. During the month, the company purchased an additional $80,000 of raw materials. During August, $85,100 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total: 25.The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July. Corporate headquarters building lease $87,100 Cosmetics Department sales commissions--Northridge Store $5,870 Corporate legal office salaries $63,700 Store manager's salary-Northridge Store $14,900 Heating-Northridge Store $12,800 Cosmetics Department cost of sales--Northridge Store $38,800 Central warehouse lease cost $14,100 Store security-Northridge Store $19,700 Cosmetics Department manager's salary--Northridge Store $4,970 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department? 26.Management of Modugno Corporation is considering whether to purchase a new model 370 machine costing $459,000 or a new model 240 machine costing $415,000 to replace a machine that was purchased 4 years ago for $423,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A. Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $415,000 in the new machine, the money could be invested in a project that would return a total of $433,000. In making the decision to invest in the model 240 machine, the opportunity cost was: $459,000 27.Nikkel Corporation, a merchandising company, reported the following results for July: Sales $419,000 Cost of goods sold (all variable) $175,500 Total variable selling expense $23,600 Total fixed selling expense $17,200 Total variable administrative expense $15,400 Total fixed administrative expense $31,400 The gross margin for July is: 28.Bowe Corporation's fixed monthly expenses are $24,500 and its contribution margin ratio is 66%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $81,000?