Managerial Accounting
Managerial Accounting
ORDER A PLAGIARISM FREE PAPER NOW
1
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
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
窗体顶端
$3,080,000
$1,254,400
$4,334,400
$1,736,000
窗体底端
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
窗体顶端
$124.13
$122.00
$49.00
$91.00
$42.00
窗体底端
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
窗体顶端
$585,000
$610,000
$730,000
$345,000
窗体底端
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
窗体顶端
$65.29
$27.00
$62.00
$53.00
$26.00
窗体底端
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
窗体顶端
$6,212,500
$6,532,000
$5,147,500
$11,360,000
$5,467,000
窗体底端
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
窗体顶端
$2,169,600
$2,101,800
$2,880,000
$2,393,200
$2,790,000
窗体底端
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
窗体顶端
$2,030,000
$1,479,000
$3,480,000
$4,959,000
窗体底端
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
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
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
窗体顶端
$586,000
$361,000
$585,000
$698,000
窗体底端
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
窗体顶端
$436,000
$672,000
$783,000
$547,000
窗体底端
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
窗体顶端
$801,405
$910,260
$1,030,595
$913,130
$916,000
窗体底端
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
窗体顶端
$120,000
$234,000
$72,000
$192,000
窗体底端
14
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
15
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
16
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
17
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
18
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
19
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
20
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
21
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
22
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
23
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
24
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
25
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
26
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
27
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
28
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
29
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
30
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
31
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
