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1. Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 8,100 units 9,000 units Direct materials $494,910 $549,900 Direct labor $109,350 $121,500 Manufacturing overhead $1,008,500 $1,019,480 The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)
$906,680
$912,680
$909,680
$917,180
2. Sanchez Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. (Do not round Cost per equivalent unit.) Units Percent Complete with Respect to Conversion Beginning work in process inventory 7,700 70% Transferred in from the prior department during March 52,800 Ending work in process inventory 4,900 90% The Fitting Department's cost per equivalent unit for conversion cost for March was $9.36. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
$561,694
$566,280
$520,416
$494,208
Find out which case is FIFO and which is LIFO. State which case would result in the higher inventory value on the balance sheet and indicate why.
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