59.

Production and sales estimates for March for the Robin Co. are as follows:

Estimated inventory (units), March 1	18,000
Desired inventory (unit), March 31	21,600
Expected sales volume (units):
Area M	7,000
Area L	8,000
Area O	9,000
Unit sales price	$15

The number of units expected to be manufactured in March is

a.24,000

b.27,000

c.27,600

d.21,600

66.

Conversion costs consist of product costs and period costs.

True

False

70. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

a. an increase in inventory

b. a gain on the sale of equipment

c. depreciation expense

d. dividends declared and paid

78.

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are

a.$237,500

b.$161,000

c.$241,000

d.$235,000

85.

Foreign currency translation adjustment is an example of an item that would be included in other comprehensive income.

True

False

87.

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 202,000 units.

True

False