The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known:

	Direct Materials Inventory	$	13,700
	Work-in-Process Inventory		6,200
	Finished Goods Inventory		14,800
	Manufacturing Overhead Control		33,500
	Accounts Payable		7,700

Reviewing old documents and interviewing selected employees have generated the following additional information:

The production superintendent's job cost sheets indicated that materials of $4,300 were included in the June 30 Work-in-Process Inventory. Also, 470 direct labor-hours had been paid at $5.00 per hour for the jobs in process on June 30.

The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $9,700. An analysis of canceled checks indicated payments of $57,000 were made to suppliers during June.

Payroll records indicate that 6,900 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June.

Records at the warehouse indicate that the Finished Goods Inventory totaled $19,400 on June 30.

Another record kept manually indicates that the Cost of Goods Sold in June totaled $101,000.

The predetermined overhead rate was based on an estimated 77,000 direct labor-hours for the year and an estimated $385,000 in manufacturing overhead costs. What is the ending balance in the Work-in-Process Inventory on June 30?

Multiple Choice

• $6,670.

• $9,000.

• $12,870.

• $13,770.

Bachmann Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the following results:

Units Produced	Marginal Labor Time
1	100.00
2	70.00

How much time will be needed to complete the 4^th unit?

Multiple Choice

• 76.00 hours.

• 49.00 hours.

• 40.00 hours.

• 32.00 hours.

Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:

Month	Machine Hours	Electricity Costs
January	3,100	$	18,700
February	3,500	$	21,600
March	2,500	$	13,800
April	3,700	$	23,600
May	4,400	$	28,550
June	3,900	$	22,600
July	4,700	$	25,050
August	4,100	$	23,050
September	2,600	$	16,100
October	4,300	$	26,600
November	5,800	$	31,600
December	5,400	$	28,050

Summary Output
Regression Statistics
Multiple R	0.947
R Square	0.897
Adjusted R2	0.887
Standard Error	1,753.98
Observations	12.00

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	3,776.77	2,145.85	1.76	0.11	(1,004.49)	8,558.03
Machine Hours	4.87	0.52	9.35	0.00	3.71	6.04

The correlation coefficient for the regression equation for electricity costs is:

Multiple Choice

• 0.947.

• 0.897.

• 0.887.

• 0.947.