Management of Modugno Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 240 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired.   Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A. Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $405,000 in the new machine, the money could be invested in a project that would return a total of $456,000. In making the decision to invest in the model 240 machine, the opportunity cost was: $405,000 $456,000 $464,000 $439,000 Salvadore Inc., a local retailer, has provided the following data for the month of September:     Merchandise inventory, beginning balance $44,500     Merchandise inventory, ending balance $43,200     Sales $263,100     Purchases of merchandise inventory $137,600     Selling expense $17,000     Administrative expense $60,900   The cost of goods sold for September was: $137,600 $136,300 $215,500 $138,900 The following costs were incurred in September:       Direct materials $42,200      Direct labor $32,800      Manufacturing overhead $25,400      Selling expenses $18,800      Administrative expenses $40,200    Conversion costs during the month totaled: $58,200 $75,000 $159,400 $67,600 Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September. Direct materials cost was $61,000, direct labor cost was $47,000, and manufacturing overhead was $75,000. Selling expense was $19,000 and administrative expense was $36,000. The conversion cost for September was: $122,000 $141,000 $183,000 $116,000 Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $214.90 per unit.   Sales volume (units)   8,100    10,020      Cost of sales $664,200    $821,640      Selling and administrative costs $613,100    $649,580       The best estimate of the total monthly fixed cost is: $459,200 $1,471,220 $1,277,300 $1,323,260 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.   Production volume 9,500  units 11,000  units   Direct materials $575,700 $666,600   Direct labor $156,750 $181,500   Manufacturing overhead $1,009,000 $1,032,400 The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.) $860,800 $868,300 $857,800 $863,800 Nikkel Corporation, a merchandising company, reported the following results for.

1. Management of Modugno Corporation is considering whether
to purchase a new model 370 machine costing $464,000 or a
new model 240 machine costing $405,000 to replace a machine
that was purchased 10 years ago for $439,000. The old machine
was used to make product M25A until it broke down last week.
Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model 240 machine. It
has less capacity than the new model 370 machine, but its
capacity is sufficient to continue making product M25A.
Management also considered, but rejected, the alternative of
simply dropping product M25A. If that were done, instead of
investing $405,000 in the new machine, the money could be
invested in a project that would return a total of $456,000.
In making the decision to invest in the model 240 machine, the
opportunity cost was:
$405,000
$456,000
$464,000
$439,000
Salvadore Inc., a local retailer, has provided the following data
for the month of September:

2. Merchandise inventory, beginning balance
$44,500
Merchandise inventory, ending balance
$43,200
Sales
$263,100
Purchases of merchandise inventory
$137,600
Selling expense
$17,000
Administrative expense
$60,900
The cost of goods sold for September was:
$137,600
$136,300
$215,500
$138,900
The following costs were incurred in September:
Direct materials
$42,200
Direct labor
$32,800
Manufacturing overhead
$25,400
Selling expenses
$18,800

3. Administrative expenses
$40,200
Conversion costs during the month totaled:
$58,200
$75,000
$159,400
$67,600
Management of Lewallen Corporation has asked your help as an
intern in preparing some key reports for September. Direct
materials cost was $61,000, direct labor cost was $47,000, and
manufacturing overhead was $75,000. Selling expense was
$19,000 and administrative expense was $36,000.
The conversion cost for September was:
$122,000
$141,000
$183,000
$116,000
Gambarini Corporation is a wholesaler that sells a single
product. Management has provided the following cost data for
two levels of monthly sales volume. The company sells the
product for $214.90 per unit.

4. Sales volume (units)
8,100
10,020
Cost of sales
$664,200
$821,640
Selling and administrative costs
$613,100
$649,580
The best estimate of the total monthly fixed cost is:
$459,200
$1,471,220
$1,277,300
$1,323,260
Babuca Corporation has provided the following production and
total cost data for two levels of monthly production volume.
The company produces a single product.
Production volume
9,500
units
11,000
units
Direct materials
$575,700
$666,600

5. Direct labor
$156,750
$181,500
Manufacturing overhead
$1,009,000
$1,032,400
The best estimate of the total monthly fixed manufacturing cost
is: (Do not round intermediate calculations.)
$860,800
$868,300
$857,800
$863,800
Nikkel Corporation, a merchandising company, reported the
following results for July:
Sales
$447,000
Cost of goods sold (all variable)
$170,500
Total variable selling expense
$20,100
Total fixed selling expense
$21,600
Total variable administrative expense

6. $8,500
Total fixed administrative expense
$31,300
The gross margin for July is:
$394,100
$276,500
$195,000
$247,900
Babuca Corporation has provided the following production and
total cost data for two levels of monthly production volume.
The company produces a single product.
Production volume
15,300
units
17,000
units
Direct materials
$931,770
$1,035,300
Direct labor
$344,250
$382,500
Manufacturing overhead

7. $1,011,500
$1,036,150
The best estimate of the total variable manufacturing cost per
unit is: (Do not round intermediate calculations.)
$87.20
$83.40
$89.55
$97.90
A soft drink bottler incurred the following factory utility cost:
$3,811 for 1,050 cases bottled and $3,878 for 1,400 cases
bottled. Factory utility cost is a mixed cost containing both
fixed and variable components. The variable factory utility cost
per case bottled is closest to:
$3.63
$0.19
$2.77
$2.72
Stelmack Corporation, a manufacturing Corporation, has
provided data concerning its operations for September. The

8. beginning balance in the raw materials account was $20,000 and
the ending balance was $27,000. Raw materials purchases
during the month totaled $63,000. Manufacturing overhead cost
incurred during the month was $53,000, of which $3,000
consisted of raw materials classified as indirect materials. The
direct materials cost for September was:
$56,000
$53,000
$70,000
$63,000
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:
credit to Raw Materials of $71,000
debit to Raw Materials of $71,000
credit to Raw Materials of $107,000
debit to Raw Materials of $107,000
Sirmons Corporation bases its predetermined overhead rate on
the estimated labor-hours for the upcoming year. At the
beginning of the most recently completed year, the Corporation
estimated the labor-hours for the upcoming year at 70,000
labor-hours. The estimated variable manufacturing overhead
was $9.93 per labor-hour and the estimated total fixed

9. manufacturing overhead was $1,649,200. The actual labor-hours
for the year turned out to be 74,000 labor-hours. The
predetermined overhead rate for the recently completed year
was closest to:
$32.22
$9.93
$33.49
$23.56
At the beginning of December, Sneeden Corporation had
$32,000 of raw materials on hand. During the month, the
Corporation purchased an additional $71,000 of raw materials.
During December, $75,000 of raw materials were requisitioned
from the storeroom for use in production. The credits entered in
the Raw Materials account during the month of December total:
$32,000
$75,000
$71,000
$103,000
Sawyer Manufacturing Corporation uses a predetermined
overhead rate based on direct labor-hours to apply
manufacturing overhead to jobs. Last year, the Corporation
worked 57,000 actual direct labor-hours and incurred $345,000
of actual manufacturing overhead cost. The Corporation had
estimated that it would work 55,000 direct labor-hours during

10. the year and incur $330,000 of manufacturing overhead cost.
The Corporation's manufacturing overhead cost for the year
was:
overapplied by $15,000
underapplied by $15,000
overapplied by $3,000
underapplied by $3,000
Brusveen Corporation applies manufacturing overhead to jobs
on the basis of direct labor-hours. The following information
relates to Brusveen for last year:
What was Brusveen's underapplied or overapplied overhead for
last year?
$4,000 underapplied
$8,880 underapplied
$8,880 overapplied
$9,000 underapplied
Jameson Corporation uses a predetermined overhead rate based
on direct labor-hours to apply manufacturing overhead to jobs.
The Corporation has provided the following estimated costs for
the next year:

11. Jameson estimates that 24,000 direct labor-hours will be worked
during the year. The predetermined overhead rate per hour will
be:
$2.00
$2.79
$3.00
$4.00
Kaleohano Corporation has provided data concerning the
Corporation's Manufacturing Overhead account for the month of
July. Prior to the closing of the overapplied or underapplied
balance to Cost of Goods Sold, the total of the debits to the
Manufacturing Overhead account was $62,000 and the total of
the credits to the account was $73,000. Which of the following
statements is true?
Manufacturing overhead for the month was underapplied by
$11,000.
Manufacturing overhead applied to Work in Process for the
month was $62,000.
Manufacturing overhead transferred from Finished Goods to
Cost of Goods Sold during the month was $73,000.
Actual manufacturing overhead for the month was $62,000.
Hudek Inc., a manufacturing Corporation, has provided the

12. following data for the month of July. The balance in the Work
in Process inventory account was $20,000 at the beginning of
the month and $10,000 at the end of the month. During the
month, the Corporation incurred direct materials cost of
$50,000 and direct labor cost of $22,000. The actual
manufacturing overhead cost incurred was $58,000. The
manufacturing overhead cost applied to Work in Process was
$56,000. The cost of goods manufactured for July was:
$138,000
$140,000
$130,000
$128,000
Compute the amount of raw materials used during August if
$25,000 of raw materials were purchased during the month and
the inventories were as follows:
$16,000
$19,000
$23,000
$27,000
The following information relates to the Blending Department
of Kedakai Products Corporation for the month of May. Kedakai
uses a weighted-average process costing system.

13. What are the Blending Department's equivalent units related to
materials for May?
260,000
277,000
290,000
307,000
Dodd Corporation uses the weighted-average method in its
process costing system. This month, the beginning inventory in
the first processing department consisted of 400 units. The costs
and percentage completion of these units in beginning inventory
were:
A total of 5,400 units were started and 4,700 units were
transferred to the second processing department during the
month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 85% complete with respect to
materials and 30% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest
to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.

14. What are the equivalent units for conversion costs for the month
in the first processing department?
5,800
5,030
4,700
330
Yoder Corporation uses the weighted-average method in its
process costing system. The following data pertain to operations
in the first processing department for a recent month:
How many units were completed and transferred to the next
department during the month?
750,000 units
790,000 units
760,000 units
740,000 units
Larner Corporation uses the weighted-average method in its
process costing system. Operating data for the first processing
department for the month of June appear below:

15. According to the company's records, the conversion cost in
beginning work in process inventory was $68,064 at the
beginning of June. Additional conversion costs of $585,324
were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for
the month? (Round off to three decimal places.)
$6.892
$6.806
$5.575
$7.090
Baker Corporation uses the weighted-average method in its
process costing system. The Assembly Department started the
month with 8,000 units in its beginning work in process
inventory that were 90% complete with respect to conversion
costs. An additional 95,000 units were transferred in from the
prior department during the month to begin processing in the
Assembly Department. There were 11,000 units in the ending
work in process inventory of the Assembly Department that
were 90% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the
Assembly Department for the month?
94,700
101,900
98,000
92,000

16. Ibarra Corporation uses the weighted-average method in its
process costing system. Data concerning the first processing
department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest
to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.
What are the equivalent units for conversion costs for the month
in the first processing department?
7,070
6,800
8,600
270
Kuzuck Corporation uses the weighted-average method in its
process costing system. Data concerning the first processing
department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest
to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.

17. The total cost transferred from the first processing department
to the next processing department during the month is closest
to:
$562,368
$543,200
$527,219
$536,200
Valley Manufacturing Corporation's beginning work in process
inventory consisted of 10,000 units, 100% complete with
respect to materials cost and 40% complete with respect to
conversion costs. The total cost in the beginning inventory was
$30,000. During the month, 50,000 units were transferred out.
The equivalent unit cost was computed to be $2.00 for materials
and $3.70 for conversion costs under the weighted-average
method. Given this information, the total cost of the units
completed and transferred out was:
$255,000
$270,000
$240,000
$285,000
Acklac Corporation uses the weighted-average method in its
process costing system. This month, the beginning inventory in
the first processing department consisted of 700 units. The costs
and percentage completion of these units in beginning inventory

18. were:
A total of 9,200 units were started and 8,300 units were
transferred to the second processing department during the
month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 75% complete with respect to
materials and 15% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest
to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.
What are the equivalent units for conversion costs for the month
in the first processing department?
8,300
240
9,900
8,540
Kuzuck Corporation uses the weighted-average method in its
process costing system. Data concerning the first processing
department for the most recent month are listed below:

19. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest
to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.
The cost of ending work in process inventory in the first
processing department according to the company's cost system
is closest to:
$28,118
$15,981
$35,148
$5,272
Graded Assignment
HST303A/304A: U.S. History | Unit 3 | Lesson 6: Exploring
Name:
Date:
Graded Assignment
The Game with No Name
A friend of yours would like to capture the adventures of Lewis
and Clark in a video game, but she needs your help. She wants
the game to be awarded Top 10 Kudos like Super Mario, Rock
Band, and SimCity. Read all the directions first and follow them
carefully to get this new expedition rolling.
(12 points)

20. Score
1. Evaluate each of the following websites and choose the three
that provide the best explanation and description of the
expedition. Explain each of your choices.
· Lewis and Clark http://www.pbs.org/lewisandclark/
· Lewis and Clark Trail Heritage Foundation
http://www.lewisandclark.org
· The Lewis and Clark Journey Log
http://www.nationalgeographic.com/lewisandclark/journey_intro
.html
· Lewis and Clark The National Bicentennial Exhibition
http://www.lewisandclarkexhibit.org/index_flash.html
Answer:
(9 points)
Score
2. Write a two or three sentence description for each website
you selected in Question 1. Be sure to highlight its most
informative features.
Example:
http://www.lewisandclark.org
Lewis and Clark Trail Heritage Foundation
This site keeps the Lewis and Clark Expedition alive in the
modern world. At the same time, it also gives comprehensive
background about the exploration, including FAQs, a history of
the expedition, and a roster and genealogy chart of participants.
It could be especially important in developing game characters.
Answer:

21. (6 points)
Score
3. Now suggest three possible game names that are both
exciting and descriptive.
Answer:
(8 points)
Score
4. Here are some other websites your friend could check in
order to get additional information about the expedition. Which
two would you recommend first and why?
· List of Supplies for the Expedition
http://www.pbs.org/lewisandclark/inside/idx_equ.html
· Circa 1803 – Historical Background of the Times
http://www.pbs.org/lewisandclark/inside/idx_cir.html
· Sacagawea http://www.pbs.org/lewisandclark/inside/saca.html
Answer:
(15 points)
Score
5. What five characters should be included in the game and
why? You should name and describe each character and his or
her role. You must include at least one Native American and
one woman in your list.
Answer:
(10 points)

22. Score
6. Use all of your information to provide a list of 10 possible
elements she should include in the game in order to make it as
informative and exciting as possible. Explain your choices and
be sure they relate clearly to the Lewis and Clark expedition.
Answer:
Your Score
___ of 60
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