i) A company uses the weighted-average method in its process costing system. The company had 2,000 units in work in process at April 1, that were 60% complete with respect to conversion cost. During April, 15,000 units were completed. At 30 April 5,000 units remained in work in process and they were 40% complete with respect to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April?

Select one:

a. 5000

b. 15000

c. 20000

d. 18000

ii)

Boxhill Ltd makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity is:

Direct materials

$4.50

Direct labor

$4.60

Variable manufacturing overhead

$3.75

Fixed manufacturing overhead

$3.45

An outside supplier has offered to supply all the motors the company needs for $15 each. If Boxhill decided not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. If Boxhill decides to continue making the motor, how much higher or lower would net operating income be than if the motors are purchased from the outside supplier?

Select one:

a.

$75,250 higher.

b.

$45,500 lower.

c.

$311,500 higher.

d.

$120,750 higher.