A) The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.

a. Ink used for screen printing	Variable
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used	Mixed
c. Thread	Variable
d. Electricity costs of $0.038 per kilowatt-hour	Variable
e. Janitorial costs of $4,000 per month	Fixed
f. Advertising costs of $12,000 per month
g. Accounting salaries
h. Color dyes for producing different colors of T-shirts	Variable
i. Salary of the production supervisor
j. Straight-line depreciation on sewing machines	Fixed
k. Salaries of internal pattern designers
l. Hourly wages of sewing machine operators	Variable
m. Property taxes on factory, building, and equipment	Fixed
n. Cotton and polyester cloth
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.)	Mixed

B) Magnolia, Inc. manufactures bedding sets. The budgeted production is for 31,800 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,320 yards with the desired ending balance of 4,100 yards of material. If the material costs $6.80 per yard, determine the materials budget for the year. $_______

C) Gleason invested $90,000 in the James and Kirk partnership for ownership equity of $90,000. Prior to the investment, land was revalued to a market value of $425,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio.

a. Provide the journal entry for the revaluation of land. If an amount box does not require an entry, leave it blank.

b. Provide the journal entry to admit Gleason.

D)If the contribution margin ratio for France Company is 37%, sales were $413,000, and fixed costs were $106,000, what was the income from operations?

$152,810

$106,000

$37,448

$46,810

E) Cash and accounts receivable for Adams Company are provided below:

	Current Year		Prior Year
Cash	$70,000		$50,000
Accounts receivable (net)	70,400		80,000

Based on this information, What is the amount and percentage of increase or decrease that would be shown with horizontal analysis?

Account	Dollar Change	Percent Change
Cash	$	%
Accounts Receivable	$	%