the most recent month are listed below . Work in process , beginning : Units in beginning work in process inventory 400 Materials costs $ 6,900 Conversion costs $ 2,500 Percent complete for materials 80 % Percent complete for conversion 15 % Units started into production during the month 6,000 Units transferred to the next department during the month 5,600 Materials costs added during the month $ 112,500 Conversion costs added during the month $ 210,300 1 . Question : ( TCO D ) Topple Company produces a single product . Operating data for the company and its absorption costing income statement for the last year are presented below . Units in beginning inventory 2,000 Units produced 9,000 Units sold 10,000 Sales $ 100,000 Less cost of goods sold : Beginning inventory 12,000 Add cost of goods manufactured 54,000 Goods available for sale 66,000 Less ending inventory 6,000 Cost of goods sold 60,000 Gross margin 40,000 Less selling and admin . expenses 28,000 Net operating income $ 12,000 2 . Question : ( TCO I ) ( Ignore income taxes in this problem .) Bill Anders retires in 8 years . He has $ 650,000 to invest and is considering a franchise for a fastfood outlet . He would have to purchase equipment costing $ 500,000 to equip the outlet and invest an additional $ 150,000 for inventories and other working