Managerial Accounting

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Jeter Corporation had net income of $216,000 based on variable costing. Beginning and ending inventories were 6,400 units and 10,800 units, respectively. Assume the fixed overhead per unit was $6 for both the beginning and ending inventory. What is net income under absorption costing?

Multiple Choice

窗体顶端

$242,400

$216,000

$319,200

$268,800

$280,800

窗体底端

Alexis Co. reported the following information for May:

	Part A
Units sold		5,600	units
Selling price per unit	$	860
Variable manufacturing cost per unit		550
Sales commission per unit - Part A		86

What is the manufacturing margin for Part A?

Multiple Choice

窗体顶端

$3,080,000

$1,254,400

$4,334,400

$1,736,000

窗体底端

Sea Company reports the following information regarding its production cost.


Units produced		56,000	units
Direct labor	$	49	per unit
Direct materials	$	42	per unit
Variable overhead	$	31	per unit
Fixed overhead	$	119,000	in total

Compute the product cost per unit under variable costing.

Multiple Choice

窗体顶端

$124.13

$122.00

$49.00

$91.00

$42.00

窗体底端

Brush Industries reports the following information for May:


Sales	$	1,000,000
Fixed cost of goods sold		120,000
Variable cost of goods sold		270,000
Fixed selling and administrative costs		120,000
Variable selling and administrative costs		145,000

Calculate the operating income for May under absorption costing.

Multiple Choice

窗体顶端

$585,000

$610,000

$730,000

$345,000

窗体底端

Shore Company reports the following information regarding its production cost.


Units produced		31,000	units
Direct labor	$	26	per unit
Direct materials	$	27	per unit
Variable overhead	$	283,000	in total
Fixed overhead	$	97,920	in total

Compute product cost per unit under absorption costing.

Multiple Choice

窗体顶端

$65.29

$27.00

$62.00

$53.00

$26.00

窗体底端

Accurate Metal Company sold 35,500 units of its product at a price of $320 per unit. Total variable cost per unit is $175, consisting of $166 in variable production cost and $9 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

Multiple Choice

窗体顶端

$6,212,500

$6,532,000

$5,147,500

$11,360,000

$5,467,000

窗体底端

Decko Industries reported the following monthly data:


Units produced		64,000	units
Sales price	$	45	per unit
Direct materials	$	2.70	per unit
Direct labor	$	3.70	per unit
Variable overhead	$	4.70	per unit
Fixed overhead	$	235,200	in total

What is the company's contribution margin for this month if 62,000 units were sold?

Multiple Choice

窗体顶端

$2,169,600

$2,101,800

$2,880,000

$2,393,200

$2,790,000

窗体底端

Alexis Co. reported the following information for May:

	Part A
Units sold		5,800	units
Selling price per unit	$	950
Variable manufacturing cost per unit		600
Sales commission per unit - Part A		95

What is the contribution margin for Part A?

Multiple Choice

窗体顶端

$2,030,000

$1,479,000

$3,480,000

$4,959,000

窗体底端

Given the following data, calculate product cost per unit under absorption costing.


Direct labor	$	13	per unit
Direct materials	$	7	per unit
Overhead
Total variable overhead	$	26,000
Total fixed overhead	$	96,000
Expected units to be produced		46,000	units

Multiple Choice

窗体顶端

$24.00 per unit

$20.57 per unit

$22.09 per unit

$22.65 per unit

$20.00 per unit

窗体底端

Brush Industries reports the following information for May:


Sales	$	960,000
Fixed cost of goods sold		112,000
Variable cost of goods sold		262,000
Fixed selling and administrative costs		112,000
Variable selling and administrative costs		137,000

Calculate the gross margin for May under absorption costing.

Multiple Choice

窗体顶端

$586,000

$361,000

$585,000

$698,000

窗体底端

Geneva Co. reports the following information for July:


Sales	$	783,000
Variable costs		236,000
Fixed costs		111,000

Calculate the contribution margin for July.

Multiple Choice

窗体顶端

$436,000

$672,000

$783,000

$547,000

窗体底端

Kluber, Inc. had net income of $916,000 based on variable costing. Beginning and ending inventories were 56,600 units and 55,200 units, respectively. Assume the fixed overhead per unit was $2.05 for both the beginning and ending inventory. What is net income under absorption costing?

Multiple Choice

窗体顶端

$801,405

$910,260

$1,030,595

$913,130

$916,000

窗体底端

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $234,000. The company produced 26,000 units, and sold 18,000 units, leaving 8,000 units in inventory at year-end. What is the value of ending inventory under variable costing?

Multiple Choice

窗体顶端

$120,000

$234,000

$72,000

$192,000

窗体底端

Hayes Inc. provided the following information for the current year:


Beginning inventory		120	units
Units produced		770	units
Units sold		813	units
Selling price	$	170	/unit
Direct materials	$	37	/unit
Direct labor	$	18	/unit
Variable manufacturing overhead	$	17	/unit
Fixed manufacturing overhead	$	26,180	/yr
Variable selling/administrative costs	$	10	/unit
Fixed selling/administrative costs	$	17,500	/yr

What is the unit product cost for the year using absorption costing?

Multiple Choice

窗体顶端

$106

$104

$82

$72

窗体底端

Urban Company reports the following information regarding its production cost:


Units produced		33,000	units
Direct labor	$	26	per unit
Direct materials	$	31	per unit
Variable overhead	$	233,000	in total
Fixed overhead	$	123,000	in total

Compute production cost per unit under variable costing.

Multiple Choice

窗体顶端

$57.00

$60.73

$64.06

$26.00

$31.00

窗体底端

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $189,000. The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at year-end. What is the value of ending inventory under absorption costing?

Multiple Choice

窗体顶端

$49,500

$115,500

$189,000

$66,000

窗体底端

Hayes Inc. provided the following information for the current year:


Beginning inventory		250	units
Units produced		900	units
Units sold		957	units
Selling price	$	300	/unit
Direct materials	$	50	/unit
Direct labor	$	31	/unit
Variable manufacturing overhead	$	30	/unit
Fixed manufacturing overhead	$	42,300	/yr
Variable selling/administrative costs	$	23	/unit
Fixed selling/administrative costs	$	30,500	/yr

What is the unit product cost for the year using variable costing?

Multiple Choice

窗体顶端

$111

$134

$158

$202

窗体底端

Chance, Inc. sold 5,000 units of its product at a price of $172 per unit. Total variable cost per unit is $131, consisting of $92 in variable production cost and $39 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

Multiple Choice

窗体顶端

$400,000

($450,000)

$460,000

$860,000

$655,000

窗体底端

Front Company had net income of $92,500 based on variable costing. Beginning and ending inventories were 2,800 units and 5,200 units, respectively. Assume the fixed overhead per unit was $8.90 for both the beginning and ending inventory. What is net income under absorption costing?

Multiple Choice

窗体顶端

$71,140

$21,300

$93,900

$163,700

$113,860

窗体底端

Sea Company reports the following information regarding its production costs:


Units produced		58,000	units
Direct labor	$	51	per unit
Direct materials	$	44	per unit
Variable overhead	$	33	per unit
Fixed overhead	$	145,000	in total

Compute the product cost per unit under absorption costing.

Multiple Choice

窗体顶端

$51.00

$44.00

$130.50

$128.00

$95.00

窗体底端

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $363,000. The company produced 33,000 units, and sold 27,000 units, leaving 6,000 units in inventory at year-end. Income calculated under variable costing is determined to be $385,000. How much income is reported under absorption costing?

Multiple Choice

窗体顶端

$319,000

$385,000

$451,000

$748,000

窗体底端

Reliance Corporation sold 5,100 units of its product at a price of $26 per unit. Total variable cost per unit is $14.00, consisting of $13.30 in variable production cost and $0.70 in variable selling and administrative cost. Compute the contribution margin for the company.

Multiple Choice

窗体顶端

$67,830

$74,970

$61,200

$71,400

$132,600

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, compute cost per unit of finished goods under variable costing.

Multiple Choice

窗体顶端

$54.00

$59.00

$57.00

$62.00

$55.88

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.

Multiple Choice

窗体顶端

$62.00

$67.33

$59.00

$54.00

$57.00

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, compute cost of finished goods in inventory under absorption costing.

Multiple Choice

窗体顶端

$1,562,400

$1,041,600

$957,600

$1,436,400

$2,604,000

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, compute cost of finished goods in inventory under variable costing.

Multiple Choice

窗体顶端

$1,562,400

$2,604,000

$1,041,600

$1,436,400

$957,600

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, and the knowledge that the product is sold for $82 per unit and operating expenses are $370,000, compute the net income under absorption costing.

Multiple Choice

窗体顶端

$134,000

$50,000

$260,000

$335,160

$84,000

窗体底端

Required information

[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.


Units produced this year		42,000	units
Units sold this year		25,200	units
Direct materials	$	26	per unit
Direct labor	$	28	per unit
Variable overhead	$	126,000	in total
Fixed overhead	$	210,000	in total

Given Advanced Company's data, and the knowledge that the product is sold for $82 per unit and operating expenses are $370,000, compute the net income under variable costing.

Multiple Choice

窗体顶端

$50,000

$378,400

$134,000

$335,160

$84,000

窗体底端

Required information

[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:


Units produced		3,900	units
Sales price	$	44	per unit
Direct materials	$	8	per unit
Direct labor	$	9	per unit
Variable overhead	$	10	per unit
Fixed overhead	$	8,970	in total

What is Red and White's contribution margin for this month if 1,170 units were sold?

Multiple Choice

窗体顶端

$171,600

$51,480

$19,890

$39,780

$66,300

窗体底端

Required information

[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:


Units produced		3,900	units
Sales price	$	44	per unit
Direct materials	$	8	per unit
Direct labor	$	9	per unit
Variable overhead	$	10	per unit
Fixed overhead	$	8,970	in total

What is Red and White's net income under absorption costing if 1,170 units are sold and selling and administrative expenses are $14,200?

rev: 06_14_2018_QC_CS-128902

Multiple Choice

窗体顶端

$10,920

$2,999

$5,690

($1,330)

($3,280)

窗体底端

Required information

[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:


Units produced		3,900	units
Sales price	$	44	per unit
Direct materials	$	8	per unit
Direct labor	$	9	per unit
Variable overhead	$	10	per unit
Fixed overhead	$	8,970	in total

What is Red and White's net income under variable costing if 1,170 units are sold and operating expenses are $14,200?

Multiple Choice

窗体顶端

$5,690

($3,280)

($1,330)

$2,999

$10,920

窗体底端