6) A computer virus destroyed some of the accounting records for Dorchester Antique Remodeling Company for the periods of 2016-2018. The following information was salvaged from the computer system.

Required:

Determine the correct amounts for A through P.

12/31/16 12/31/17 12/31/18

Beginning direct materials $50,250 F $45,210

Purchases of direct materials A 65,250 70,125

Ending direct materials 34,165 45,210 L

Direct materials used 91,385 54,205 M

Direct labor B 155,050 162,000

Manufacturing overhead 115,325 G 127,145

Total manufacturing costs C 319,255 364,130

Beginning work-in-process inventory 36,450 H 29,635

Ending work-in-process inventory 21,985 29,635 N

Costs of goods manufactured 386,700 I 362,920

Beginning finished goods inventory 37,000 J 42,500

Ending finished goods inventory D 42,500 39,550

Cost of goods sold 377,500 315,755 O

Net sales 550,000 495,000 P

Selling and Administrative Expenses 135,950 K 130,130

Net income E 46,250 39,000

7) Wisigan Instruments manufactures two models of calculators. The research model is the RES-1 and the student model is the AS-2. Both models are assembled in the same plant and require the same assembling operations. The difference is in the cost of the internal components. The following data are available for February.

Wisigan uses operations costing and assigns conversion costs on the number of units assembled.

Required: Compute the cost of the RES-1 and AS-2 models for February.

8) Argenta, Inc. is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter:

Unit sales:

January 40,000

February 55,000

March 50,000

Unit sales price $25

Cost of goods sold per unit $13

Expenses:

Commissions 10% of sales

Rent $20,000/month

Advertising 15% of sales

Office salaries $75,000/month

Depreciation $50,000/month

Interest 15% annually on a $250,000 note payable

Tax rate 40%

REQUIRED a budgeted income statement for this first quarter.

9)

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:

April May

Sales $150,000 $157,500

Merchandise purchases 107,000 112,400

Operating expenses:

Payroll 13,600 14,280

Advertising 5,400 5,700

Rent 2,500 2,500

Depreciation 7,500 7,500

End of April balances:

Cash 30,000

Bank loan payable 26,000

Additional data:

(1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000.

(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month.

(3) Operating expenses are paid in the month they are incurred.

(4) A minimum cash balance of $25,000 is required at the end of each month.

(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available.

Prepare the company's cash budget for May. Show the ending loan balance at May 31.

10) The following information describes production activities of the Midtown Corp.:

Raw materials used 16,000 lbs. at $4.05 per lb.

Factory payroll 5,545 hours for a total of $72,085

30,000 units were completed during the year

Budgeted standards for each unit produced:

1/2 lb. of raw material at $4.15 per lb.

10 minutes of direct labor at $12.50 per hour

Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable