Answer:
1. Glennon Company
Total manufacturing costs and costs of goods sold:
C) $790,000 $810,000
2. Carr Company
Annual Rate of Return for Project Soup:
B) 7.5%.
Explanation:
1A) Total Manufacturing costs
Direct materials used      $270,000
Beginning work in process   40,000 Â
Direct labor               200,000
Ending work in process     (20,000 )
Manufacturing overhead    300,000
Total manufacturing costs $790,000
1B) Costs of goods sold:
Beginning finished goods      50,000
Costs of goods manufactured  790,000
less Ending finished goods     (30,000)
Cost of goods sold          $810,000
2)                 Project Soup    Project Nuts
Initial investment     $400,000      $600,000
Annual net income      30,000         46,000
Net annual cash inflow  110,000        146,000
Annual Rate of Return = Annual net income/Initial Investment
= $30,000/$400,000 x 100 = 7.5%
