The following balance sheet has been prepared by the accountant for limestone company as of june 3, 2013, the date on which the company is to file a voluntary petition of bankruptcy:
    limestone company
balance sheet
june 3, 2013
assets
cash $ 3,000
accounts receivable (net) 65,000
inventory 88,000
land 100,000
buildings (net) 300,000
equipment (net) 180,000
total assets $ 736,000
liabilities and equities
accounts payable $ 98,000
notes payable—current 250,000
(secured by equipment) notes payable—long term 190,000
(secured by land and
buildings)
common stock 120,000
retained earnings 78,000
total liabilities and 736,000
equities $
additional information
• if the company is liquidated, administrative expenses are estimated at $18,000.
• the accounts payable figure includes $10,000 in wages earned by the company’s 12 employees during may. no one
earned more than $2,200.
• liabilities do not include taxes of $14,000 owed to the u. s. government.
• company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the
inventory disposal will bring $80,000. the land and buildings will be sold together for approximately $310,000; the
equipment should bring $130,000 at auction.
prepare a statement of financial affairs for limestone company as of june 3, 2013.

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02