The materials requisition is used to

	A.	record the acquisition of materials from a vendor
	B.	release finished goods to the shipping department
	C.	record and electronically transmit materials data in place of a receiving report
	D.	release materials from the storeroom to the factory

Carmelita Inc., has the following information available:

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	Costs from Beginning Inventory	Costs from current Period
Direct materials	2,000	$ 22,252
Conversion costs	6,200	150,536

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At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.

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The equivalent units of production for direct materials and conversion costs, respectively, were

		4,902 for direct materials and 4,802 for conversion costs
		4,602 for direct materials and 4,802 for conversion costs
		4,840 for direct materials and 4,802 for conversion costs
		5,340 for direct materials and 4,902 for conversion costs

Chelsa Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $23,000. At 8,000 units of production, a flexible budget would show

		variable and fixed costs totaling $107,000
		variable costs of $64,000, and $23,000 of fixed costs
		variable costs of $64,000, and $28,000 of fixed costs
		variable costs of $72,000, and $23,000 of fixed costs

S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows:

	Variable	Fixed
Unit manufacturing costs of the period	$11.00	$7.00
Unit operating expenses of the period	3.00	2.50

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Which of the following statements is true?

		Net income under absorption costing will be $40,000 more than under variable costing.
		Net income will be the same under both variable and absorption costing.
		Net income under variable costing will be $45,000 less than net income under absorption costing
		The difference in net income cannot be determined.