If I can have the explanations that would be great, thank you.
1. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price
|
$112
|
| |
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
5,500
|
|
Units sold
|
5,300
|
|
Units in ending inventory
|
200
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$33
|
|
Direct labor
|
$37
|
|
Variable manufacturing overhead
|
$5
|
|
Variable selling and administrative
|
$6
|
| |
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$71,500
|
|
Fixed selling and administrative
|
$79,500
|
What is the net operating income for the month under absorption costing?
$1,700
$15,900
$13,300
$2,600.
2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Units in beginning inventory
|
0
|
|
Units produced
|
7,300
|
|
Units sold
|
7,200
|
|
Units in ending inventory
|
100
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$29
|
|
Direct labor
|
$49
|
|
Variable manufacturing overhead
|
$5
|
|
Variable selling and administrative
|
$4
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$94,900
|
|
Fixed selling and administrative
|
$79,200
|
What is the absorption costing unit product cost for the month?
$87 per unit
$100 per unit
$83 per unit
$96 per unit
3. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price
|
$132
|
| |
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
1,100
|
|
Units sold
|
800
|
|
Units in ending inventory
|
300
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$48
|
|
Direct labor
|
$17
|
|
Variable manufacturing overhead
|
$2
|
|
Variable selling and administrative
|
$4
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$39,600
|
|
Fixed selling and administrative
|
$7,200
|
What is the total period cost for the month under absorption costing?
$50,000
$39,600
$7,200
$10,400
4. Under absorption costing, product costs include:
|
Variable manufacturing overhead
|
Fixed manufacturing overhead
|
|
Yes
|
Yes
|
|
No
|
No
|
|
Yes
|
No
|
|
No
|
Yes
|
Option B
Option A
Option C
Option D
5. Sharron Inc., which produces a single product, has provided the following data for its most recent month of operations:
|
Number of units produced
|
3,000
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$91
|
|
Direct labor
|
$13
|
|
Variable manufacturing overhead
|
$7
|
|
Variable selling and administrative expense
|
$6
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$237,000
|
|
Fixed selling and administrative expense
|
$165,000
|
There were no beginning or ending inventories. The variable costing unit product cost was:
$190 per unit
$111 per unit
$117 per unit
$110 per unit
6. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price
|
$89
|
| |
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
4,300
|
|
Units sold
|
4,000
|
|
Units in ending inventory
|
300
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$13
|
|
Direct labor
|
$35
|
|
Variable manufacturing overhead
|
$1
|
|
Variable selling and administrative
|
$10
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$77,400
|
|
Fixed selling and administrative
|
$24,000
|
The total contribution margin for the month under variable costing is:
$88,000
$42,600
$160,000
$120,000