Question 7 (2 points) Burger Hut, Inc. is a manufacturer of the best burgers in town. The company's Raw Materials Inventory only contains direct materials. $35,000 in Raw Materials were purchased during the year. Then ending Raw Materials Inventory account was $4,000 higher than the beginning Raw Materials Inventory. Burger Hut started the year with $19,000 it its Work-In-Progress inventory. By the end of the year, the Work-In-Progress Inventory contained $22,000. Additionally, at the end of the year, the company reported $13,000 in its Finished Goods Inventory, which was a decrease of $4,500.

Additionally, the following data were collected from the company:

Direct Labor Costs: $40,000

Factory Supervisor's Salary: $10,000

Factory Utilities: $12,000

Factory Depreciation: $9,000

Factory Rent: $8,000

Indirect Factory Materials: $500

Selling, General, and Administrative Expenses: $22,000

What is the cost assigned to the units completed during the year?

options: $107,500

$112,000

$110,500

$22,000

$35,000

Question 8 (2 points) Lola Industries, Inc. is a merchandiser of dog toys. The company sells two products: Tennis Balls and Chew Toys. At the beginning of the day, the store had 7 Tennis Balls and 8 Chew Toys in its inventory. During the course of business that day, the company purchased 4 more Tennis Balls and 6 more Chew Toys. The bags were delivered to the shop during that day. At the end of the day, 3 Tennis Balls and 10 Chew Toys were in Lola's Ending Inventory.

Each Tennis Ball costs $5 from the supplier and each Chew Toy costs $3.50 from the supplier. In addition, the company pays $2.00 in shipping and insurance for each item that is purchased and shipped to Lola. These prices have been constant from the time Lola began business.

What is Lola's Gross Profit for the day if it sells a Tennis Ball for $12 and a Chew Toy for $14.

options: $56

$74

$98

$40

$34

Question 9 (2 points) The following information was extracted from the accounting records of Wallentine, LLC, a manufacture of horse saddles.

Raw Materials used: $15,000

Indirect Materials used: $3,000

Direct Labor: $9,000

Indirect Factory Labor: $3,000

Administrative and Sales Salaries: $4,000

Building Depreciation*: $3,500

Building Rent*: $4,000

*The building is 5,000 square feet. 4,000 square feet are devoted to manufacturing operations. The remaining square footage is devoted to administrative selling activities. Shared costs are allocated based on square footage.

The company started the quarter with $25,000 in its Work-In-Progress inventory. The balance in Work-In-Progress inventory had increased to $28,000 by the end of the quarter. The net decrease in Finished Goods Inventory during the quarter was $5,000.

The company uses an actual costing system to account for MOH and includes both direct and indirect materials in its Raw Materials Inventory account.

Which of the following statements is correct?

options: The total period costs included in the schedule above total $3,000.

Costs assigned to units completed during the period was $25,900.

Gross Profit for the period was equal to Sales Revenue less $35,000.

The total indirect product costs for the period were $4,900.

More than one of the above answers is correct.