6-359
6-360
139.
Crossbow Corp. produces a single product. Data concerning June’s operations follow:
Units in
beginning
inventory
0
Units produced
6,000
Units sold
5,000
Variable costs
per unit:
Manufacturing
$7
Selling and
administrative
$3
Fixed costs in
total:
Manufacturing
$12,000
Selling and
administrative
$3,000
Under variable costing, ending inventory on the balance sheet would be valued at:
6-361
6-362
140.
Crossbow Corp. produces a single product. Data concerning June’s operations follow:
Units in
beginning
inventory
0
Units produced
6,000
Units sold
5,000
Variable costs
per unit:
Manufacturing
$7
Selling and
administrative
$3
Fixed costs in
total:
Manufacturing
$12,000
Selling and
administrative
$3,000
Variable manufacturing cost
Under absorption costing, ending inventory on the balance sheet would be valued at:
6-363
6-364
141.
Crossbow Corp. produces a single product. Data concerning June’s operations follow:
Units in
beginning
inventory
0
Units produced
6,000
Units sold
5,000
Variable costs
per unit:
Manufacturing
$7
Selling and
administrative
$3
Fixed costs in
total:
Manufacturing
$12,000
Selling and
administrative
$3,000
For the year in question, net operating income under variable costing will be:
6-365
6-366
142.
During its first year of operations, Carlos Manufacturing Corporation incurred the following
costs to produce 8,000 units of its only product:
Direct materials
$7 per unit
Direct labor
$3 per unit
Variable manufacturing
overhead
$18 per unit
Fixed manufacturing overhead
$450,000 in
total
The company also incurred the following costs in selling 7,500 units of product during its
first year:
Variable selling and
administrative
$2 per unit
Fixed selling and administrative
$60,000 in
total
Direct materials
Direct labor
Variable manufacturing overhead
Assume that direct labor is a variable cost.
Under absorption costing, what is the total cost that would be assigned to Carlos’ finished
goods inventory at the end of the first year of operations?
6-367
6-368
143.
During its first year of operations, Carlos Manufacturing Corporation incurred the following
costs to produce 8,000 units of its only product:
Direct materials
$7 per unit
Direct labor
$3 per unit
Variable manufacturing
overhead
$18 per unit
Fixed manufacturing overhead
$450,000 in
total
The company also incurred the following costs in selling 7,500 units of product during its
first year:
Variable selling and
administrative
$2 per unit
Fixed selling and administrative
$60,000 in
total
Direct materials
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
Assume that direct labor is a variable cost.
Under variable costing, what is the total cost that would be assigned to Carlos’ finished
goods inventory at the end of the first year of operations?
6-369
6-370
144.
During its first year of operations, Carlos Manufacturing Corporation incurred the following
costs to produce 8,000 units of its only product:
Direct materials
$7 per unit
Direct labor
$3 per unit
Variable manufacturing
overhead
$18 per unit
Fixed manufacturing overhead
$450,000 in
total
The company also incurred the following costs in selling 7,500 units of product during its
first year:
Variable selling and
administrative
$2 per unit
Fixed selling and administrative
$60,000 in
total
Assume that direct labor is a variable cost.
If Carlos’ absorption costing net operating income for this first year is $118,125, what
would its variable costing net operating income be for this first year?
6-371
6-372
145.
The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory
0
Units produced
5,000
Units sold
4,500
Variable costs per unit:
Manufacturing
$10
Selling and administrative
$4
Fixed costs, in total:
Manufacturing
$15,000
Selling and administrative
$10,000
Under variable costing, the unit product cost is:
146.
The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory
0
Units produced
5,000
Units sold
4,500
Variable costs per unit:
Manufacturing
$10
Selling and administrative
$4
Fixed costs, in total:
Manufacturing
$15,000
Selling and administrative
$10,000
Variable manufacturing cost
Absorption costing unit product cost
Under absorption costing, the unit product cost is:
6-374
147.
The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory
0
Units produced
5,000
Units sold
4,500
Variable costs per unit:
Manufacturing
$10
Selling and administrative
$4
Fixed costs, in total:
Manufacturing
$15,000
Selling and administrative
$10,000
For the year in question, one would expect the net operating income under absorption
costing to be:
6-375
148.
Chown Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$110
Units in beginning inventory
0
Units produced
8,000
Units sold
7,800
Units in ending inventory
200
Variable costs per unit:
Direct materials
$22
Direct labor
$31
Variable manufacturing overhead
$3
Variable selling and administrative
$4
Fixed costs:
Fixed manufacturing overhead
$248,000
Fixed selling and administrative
$140,400
The total contribution margin for the month under variable costing is:
6-376
6-377
149.
Chown Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$110
Units in beginning inventory
0
Units produced
8,000
Units sold
7,800
Units in ending inventory
200
Variable costs per unit:
Direct materials
$22
Direct labor
$31
Variable manufacturing overhead
$3
Variable selling and administrative
$4
Fixed costs:
Fixed manufacturing overhead
$248,000
Fixed selling and administrative
$140,400
Direct materials
Direct labor
Variable manufacturing overhead
31
The total gross margin for the month under the absorption costing approach is:
6-378