Soledad Corporation had $36,000 of raw materials on hand on December 1. During the month, the Corporation purchased an additional $71,000 of raw materials. The journal entry to record the purchase of raw materials would include a

A. credit to Raw Materials of $71,000.

B. debit to Raw Materials of $71,000.

C. debit to Raw Materials of $107,000.

D. credit to Raw Materials of $107,000.

When the activity level declines within the relevant range, what should happen with respect to the fixed and variable costs per unit?

A. Neither the fixed nor variable costs per unit change.

B. The fixed cost per unit increases and the variable cost per unit doesn't change.

C. The variable cost per unit increases and the fixed cost per unit doesn't change.

D. Both the fixed and variable costs per unit increase.

What would be an example of a discretionary fixed cost?

A. Insurance

B. Research and development

C. Taxes on the factory

D. Depreciation on manufacturing equipment

Winker Corp. uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs.

Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?

A. 6,700 units

B. 13,200 units

C. 10,000 units

D. 12,000 units

What does contribution margin represent?

A. The sum of cost of goods sold and variable expenses

B. What remains from total sales after deducting fixed expenses

C. What remains from total sales after deducting all variable expenses

D. What remains from total sales after deducting cost of goods sold