Managerial Accounting
eter 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
绐椾綋椤剁
路
$242,400
路
$216,000
路
$319,200
路
$268,800
路
$280,800
绐椾綋搴曠
2
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
绐椾綋椤剁
路
$3,080,000
路
$1,254,400
路
$4,334,400
路
$1,736,000
绐椾綋搴曠
3
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
绐椾綋椤剁
路
$124.13
路
$122.00
路
$49.00
路
$91.00
路
$42.00
绐椾綋搴曠
4
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
绐椾綋椤剁
路
$585,000
路
$610,000
路
$730,000
路
$345,000
绐椾綋搴曠
5
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
绐椾綋椤剁
路
$65.29
路
$27.00
路
$62.00
路
$53.00
路
$26.00
绐椾綋搴曠
6
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
绐椾綋椤剁
路
$6,212,500
路
$6,532,000
路
$5,147,500
路
$11,360,000
路
$5,467,000
绐椾綋搴曠
7
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
绐椾綋椤剁
路
$2,169,600
路
$2,101,800
路
$2,880,000
路
$2,393,200
路
$2,790,000
绐椾綋搴曠
8
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
绐椾綋椤剁
路
$2,030,000
路
$1,479,000
路
$3,480,000
路
$4,959,000
绐椾綋搴曠
9
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
绐椾綋椤剁
路
$24.00 per unit
路
$20.57 per unit
路
$22.09 per unit
路
$22.65 per unit
路
$20.00 per unit
绐椾綋搴曠
10
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
绐椾綋椤剁
路
$586,000
路
$361,000
路
$585,000
路
$698,000
绐椾綋搴曠
11
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
绐椾綋椤剁
路
$436,000
路
$672,000
路
$783,000
路
$547,000
绐椾綋搴曠
12
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
绐椾綋椤剁
路
$801,405
路
$910,260
路
$1,030,595
路
$913,130
路
$916,000
绐椾綋搴曠
13
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
绐椾綋椤剁
路
$120,000
路
$234,000
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