Prepare a cost of production report for the Cutting Department of Borges Distributors for May 2006, using the following data and assuming that all materials are added at the beginning of the production process: Work in process, May 1, 8,000 units, 75% complete $70,400* * Direct materials (8,000 x $5.20) $41,600 Conversion costs (8,000 x 75% x $4.80) 28,800 $70,400 Materials added during May from Weaving Dept., 215,000 units 1,128,750 Direct labor for May 402,040 Factory overhead for May 603,060 Goods finished during May (includes goods in process, May 1), 214,000 units -- Work in process, May 31st, 9,000 units, 40% completed

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld