170) The Southern Corporation manufactures a single product and has the following cost
structure:
Variable costs per unit:
$
38
Production
Selling and administrative
$
14
Fixed costs per year:
Production
$
140,000
Selling and administrative
$
84,000
Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning
inventory.
Under variable costing, the unit product cost would be:
A) $38 per unit
B) $52 per unit
C) $58 per unit
D) $70 per unit
171) The Southern Corporation manufactures a single product and has the following cost
structure:
Variable costs per unit:
$
38
Production
Selling and administrative
$
14
Fixed costs per year:
Production
$
140,000
Selling and administrative
$
84,000
Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning
inventory.
The carrying value on the balance sheet of the ending inventory of finished goods under variable
costing would be:
A) the same as absorption costing.
B) $6,800 greater than under absorption costing.
C) $6,800 less than under absorption costing.
D) $4,000 less than under absorption costing.
172) The Southern Corporation manufactures a single product and has the following cost
structure:
Variable costs per unit:
$
38
Production
Selling and administrative
$
14
Fixed costs per year:
Production
$
140,000
Selling and administrative
$
84,000
Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning
inventory.
Under absorption costing, the cost of goods sold for the year would be:
A) $258,400
B) $394,400
C) $353,600
D) $398,400
Variable production cost per unit
$
38
Fixed production cost per unit ($140,000 ÷ 7,000 units)
20
Absorption costing unit product cost (a)
$
58
Units sold (b)
Cost of goods sold (a) × (b)
$
394,400
173) Baraban Corporation has provided the following data for its most recent year of operation:
Selling price per unit
$
47
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
130,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
63,000
Units in beginning inventory
0
Units produced during the year
10,000
Units sold during the year
9,000
Units in ending inventory
1,000
The unit product cost under absorption costing is closest to:
A) $39.00
B) $21.00
C) $34.00
D) $13.00
Direct materials
$
10
Direct labor
6
Variable manufacturing overhead
5
($130,000 ÷ 10,000 units produced)
13
Absorption costing unit product cost
$
34
174) Baraban Corporation has provided the following data for its most recent year of operation:
Selling price per unit
$
47
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
130,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
63,000
Units in beginning inventory
0
Units produced during the year
10,000
Units sold during the year
9,000
Units in ending inventory
1,000
The unit product cost under variable costing is closest to:
A) $34.00
B) $39.00
C) $21.00
D) $26.00
Direct materials
$
10
Direct labor
6
Variable manufacturing overhead
5
Variable costing unit product cost
$
21
206
175) Baraban Corporation has provided the following data for its most recent year of operation:
Selling price per unit
$
47
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
130,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
63,000
Units in beginning inventory
0
Units produced during the year
10,000
Units sold during the year
9,000
Units in ending inventory
1,000
The net operating income (loss) under absorption costing closest to:
A) ($4,000)
B) $9,000
C) $117,000
D) $72,000
208
176) Baraban Corporation has provided the following data for its most recent year of operation:
Selling price per unit
$
47
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
130,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
63,000
Units in beginning inventory
0
Units produced during the year
10,000
Units sold during the year
9,000
Units in ending inventory
1,000
The net operating income (loss) under variable costing is closest to:
A) $234,000
B) $9,000
C) ($4,000)
D) $189,000
177) Smidt Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
140,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
65,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
10,000
7,000
Units sold during the year
7,000
6,000
Units in ending inventory
3,000
4,000
The unit product cost under absorption costing in Year 1 is closest to:
A) $19.00
B) $14.00
C) $33.00
D) $38.00
Year 1
Direct materials
9
Direct labor
6
Variable manufacturing overhead
5
($140,000 ÷ 10,000 units produced)
14
Absorption costing unit product cost
33
178) Smidt Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
140,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
65,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
10,000
7,000
Units sold during the year
7,000
6,000
Units in ending inventory
3,000
4,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $19.00
B) $44.00
C) $20.00
D) $39.00
Year 2
Direct materials
9
Direct labor
5
Variable manufacturing overhead
5
($140,000 ÷ 7,000 units produced)
20
Absorption costing unit product cost
39
179) Smidt Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
140,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
65,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
10,000
7,000
Units sold during the year
7,000
6,000
Units in ending inventory
3,000
4,000
The unit product cost under variable costing in Year 1 is closest to:
A) $24.00
B) $33.00
C) $19.00
D) $38.00
Year 1
Direct materials
9
Direct labor
5
Variable manufacturing overhead
14
Variable costing unit product cost
33
180) Tustin Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
68
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
220,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
11,000
10,000
Units sold during the year
10,000
7,000
Units in ending inventory
1,000
4,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $48.00
B) $22.00
C) $20.00
D) $42.00
Year 2
Direct materials
10
Direct labor
6
Variable manufacturing overhead
4
($220,000 ÷ 10,000 units produced)
22
Absorption costing unit product cost
42
181) Tustin Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
68
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
220,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
11,000
10,000
Units sold during the year
10,000
7,000
Units in ending inventory
1,000
4,000
The unit product cost under variable costing in Year 1 is closest to:
A) $20.00
B) $26.00
C) $46.00
D) $40.00
Year 1
Direct materials
10
Direct labor
6
Variable manufacturing overhead
4
Variable costing unit product cost
20
215
182) Tustin Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
68
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
220,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
11,000
10,000
Units sold during the year
10,000
7,000
Units in ending inventory
1,000
4,000
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $81,000
B) $13,000
C) $184,000
D) $142,000
217
183) Tustin Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
68
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
220,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
11,000
10,000
Units sold during the year
10,000
7,000
Units in ending inventory
1,000
4,000
The net operating income (loss) under variable costing in Year 1 is closest to:
A) $420,000
B) $480,000
C) $139,000
D) $159,000
219
184) Mandato Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
50
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
10
Direct labor
$
6
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
72,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
70,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
9,000
8,000
Units sold during the year
6,000
9,000
Units in ending inventory
3,000
2,000
The net operating income (loss) under absorption costing in Year 1 is closest to:
A) $126,000
B) $96,000
C) $26,000
D) $2,000
