1. Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the material and conversion cost per unit (to the nearest penny), respectively.

a.	$5.94 and $5.86
b.	$5.94 and $6.38
c.	$8.00 and $8.68
d.	$9.84 and $9.58

2.

The account Unrealized Gain (Loss) on Available-For-Sale Securities should be included in the

a.	Income statement as Other Revenue (Expenses)
b.	Balance sheet as an adjustment to the asset account
c.	Balance sheet as an adjustment to Stockholders Equity
d.	Statement of Retained Earnings

3. On the first day of the fiscal year, a company issues $4,000,000, 10%, 10-year bond that pays semiannual interest of $200,000, receiving cash of $3,760,992. Journalize the bond issuance.

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4.

At a total cost of $860,000 Acorn Corporation purchased 40% of the outstanding shares of First Corp. common stock as a long-term investment. Acorn Corporation uses the equity method of accounting for this investment. First Corp. reports net income of $640,000 for the current period. Prepare (journalize) the entry for Acorn Corporation for the share of First Corp. income.

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5. Sales reported on the income statement were $90,000. The account receivable balance decreased $8,000 over the year. The cost of merchandise sold account shows $50,000 debit balance. Under the direct method determine the amount of cash received from customers