Which of the following products probably would be manufactured using a job order costing system?

	a.	Computer monitors
	b.	Baseball bats (not correct answer)
	c.	Company business cards
	d.	Paper

part B.

Rods Manufacturing Company can make 100 units of a necessary component part with the following costs

Direct Materials $60,000

Direct Labor 10,000

Variable Overhead 30,000

Fixed Overhead 20,000 If Rods Manufacturing Company can purchase the component externally for $95,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

	a.	Make and save $5,000
	b.	Buy and save $5,000
	c.	Make and save $15,000
	d.	Buy and save $15,000

part c.

Cal, Inc. showed the following amounts in its manufacturing overhead account at the end of 2013:

Manufacturing Overhead
20,000
16,000	61,000
22,000

Based on this information, which statement is true?

	a.	No manufacturing overhead has been applied.
	b.	Manufacturing overhead expense will be reported in the operating section of the income statement in the amount of $3,000.
	c.	Manufacturing overhead has been overapplied.
	d.	Manufacturing overhead has been underapplied. (not correct answer)

part D Chicotti Company has 3,000 units in beginning work in process, 30% complete as to conversion costs, 26,000 units transferred out to finished goods, and 2,000 units in ending work in process 65% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for conversion costs if the weighted-average method is used?

a.	25,200
b.	27,300
c.	23,000
d.	24,300

part E Each production worker can produce 4 wooden chairs per hour. During the month of June, Chairs, Inc. has forecasted sales of 105,000 chairs. The beginning inventory was 2,200 chairs, and desired ending inventory is 3,200 chairs. How many hours of direct labor must be budgeted to meet production needs?

	a.	25,375
	b.	25,000
	c.	26,500 (not correct)
	d.	24,625

part F On the statement of cash flows, a gain on the sale of a long-term asset would be:

	a.	Not listed.
	b.	Added to operating activities.
	c.	Subtracted from operating activities.
	d.	Included in investing activities. (not correct)

Part G On the statement of cash flows, net income would be:

	a.	Not listed. (not correct)
	b.	Added to operating activities.
	c.	Subtracted from operating activities.
	d.	Included in investing activities.