14. Compute conversion costs given the following data: Direct Materials, $386,192; Direct Labor, $269,141; Factory Overhead, $181,054.

Select the correct answer.

a.

$567,246

b.

$836,387

c.

$386,192

d. $450,195

13. A building with a book value of $40,114 is sold for $55,538 cash Using the indirect method, choose how this transaction should be shown on the statement of cash flows.

Select the correct answer.

a.

an increase of $40,114 from investing activities

b. an increase of $55,538 from investing activities and a deduction from net income of $15,424

c.	an increase of $40,114 from investing activities and an addition to net income of $15,424

d. an increase of $55,538 from investing activities

10. A company with working capital of $236,881 and a current ratio of 2.4 pays a $76,697 short-term liability. Determine the amount of working capital immediately after payment.

Select the correct answer.

a. $76,697

b. $313,578

c.

$236,881

d. $160,184

8. If Department K had 2,500 units, 45% completed, in process at the beginning of the period, 15,000 units were completed during the period, and 1,200 units were 40% completed at the end of the period, what was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

a. 16,605

b. 16,855

c. 13,460

d. 14,355

4. The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:

a. Equal units sold.

b. Are less than units sold.

c. Exceed units sold.

d. Are equal to or greater than units sold.