7. On Aug 15, 2019, Madison Mfg. purchased of $80,000 of raw materials (RM) on account. What is the correct journal entry to record this transaction? a. Aug 15 RM Inventory 80,000 Acct Rec. 80,000 b. Aug 15 Acct Pay RM Inventory 80,000 80,000 c. Aug 15 RM Inventory Cash 80,000 80,000 d. Aug 15 RM Inventory Acct Pay 80,000 80,000 8. In 2019, sales were $2,000,000. Variable costs were 65% of sales. Fixed costs were $450,000. Calculate net income. a. $450,000 b. $350,000 c. $500,000 d. $250,000 9. In May 2019, Villa Mfg. budgeted to make 12,000 laptops. Budgeted costs were: direct materials (DM): $36,000; direct labor (DL): 72,000; indirect materials (IDM): $18,000; fixed OH (FOH): $6,000; rent: $9,000; straight line depreciation of factory equipment (SLD): $24,000. Calculate Villa's flexible budget for 15,000 laptops. a. None of the above b. DM: $45,000; DL: $90,000; IDM: $22,500; FOH: $7,500; Rent: 11,250; SLD: $30,000 c. DM: $36,000; DL: $72,000; IDM: $18,000; FOH: $6,000; Rent: $9,000; SLD: $24,000 d. DM: $45,000; DL: $90,000; IDM: $22,500; FOH: $6,000; Rent: $9,000; SLD: $24,000