221
185) Mandato 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) $74,000
B) $183,000
C) $68,000
D) $138,000
223
186) Mandato 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) $144,000
B) $2,000
C) $26,000
D) $174,000
225
187) Mandato 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 2 is closest to:
A) $74,000
B) $216,000
C) $261,000
D) $68,000
188) Pavelko Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
90,000
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
10,000
9,000
Units sold during the year
9,000
8,000
Units in ending inventory
1,000
2,000
The unit product cost under absorption costing in Year 1 is closest to:
A) $38.00
B) $32.00
C) $23.00
D) $9.00
Year 1
Direct materials
13
Direct labor
Variable manufacturing overhead
($90,000 ÷ 10,000 units produced)
Absorption costing unit product cost
32
189) Pavelko Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
90,000
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
10,000
9,000
Units sold during the year
9,000
8,000
Units in ending inventory
1,000
2,000
The unit product cost under variable costing in Year 2 is closest to:
A) $23.00
B) $38.00
C) $32.00
D) $29.00
Year 2
Direct materials
13
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
23
190) Lenart Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
70,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
83,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
10,000
7,000
Units sold during the year
9,000
6,000
Units in ending inventory
1,000
2,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $39.00
B) $23.00
C) $10.00
D) $33.00
Year 2
Direct materials
13
Direct labor
Variable manufacturing overhead
($70,000 ÷ 7,000 units produced)
10
Absorption costing unit product cost
33
191) Lenart Corporation has provided the following data for its two most recent years of
operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
90,000
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
10,000
9,000
Units sold during the year
9,000
8,000
Units in ending inventory
1,000
2,000
The unit product cost under variable costing in Year 1 is closest to:
A) $29.00
B) $30.00
C) $23.00
D) $36.00
Year 1
Direct materials
13
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
23
231
192) Cahalane Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
4
Fixed selling and administrative expense per year
$
78,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
9,000
12,000
Units sold during the year
8,000
10,000
Units in ending inventory
1,000
3,000
Which of the following statements is true for Year 1?
A) The amount of fixed manufacturing overhead deferred in inventories is $48,000
B) The amount of fixed manufacturing overhead released from inventories is $560,000
C) The amount of fixed manufacturing overhead deferred in inventories is $560,000
D) The amount of fixed manufacturing overhead released from inventories is $48,000
233
193) Cahalane Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
5
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
4
Fixed selling and administrative expense per year
$
78,000
Year 1
Year 2
Units in beginning inventory
0
1,000
Units produced during the year
9,000
12,000
Units sold during the year
8,000
10,000
Units in ending inventory
1,000
3,000
Which of the following statements is true for Year 2
A) The amount of fixed manufacturing overhead deferred in inventories is $60,000
B) The amount of fixed manufacturing overhead released from inventories is $60,000
C) The amount of fixed manufacturing overhead deferred in inventories is $592,000
D) The amount of fixed manufacturing overhead released from inventories is $592,000
194) Moskowitz Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
7
Variable manufacturing overhead
$
3
Fixed manufacturing overhead per year
$
480,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
84,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
12,000
10,000
Units sold during the year
9,000
10,000
Units in ending inventory
3,000
3,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $77.00
B) $48.00
C) $23.00
D) $71.00
Year 2
Direct materials
13
Direct labor
7
Variable manufacturing overhead
3
($480,000 ÷ 10,000 units produced)
48
Absorption costing unit product cost
71
195) Moskowitz Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
7
Variable manufacturing overhead
$
3
Fixed manufacturing overhead per year
$
480,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
84,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
12,000
10,000
Units sold during the year
9,000
10,000
Units in ending inventory
3,000
3,000
The unit product cost under variable costing in Year 1 is closest to:
A) $63.00
B) $69.00
C) $23.00
D) $29.00
Year 1
Direct materials
13
Direct labor
7
Variable manufacturing overhead
3
Variable costing unit product cost
23
237
196) Moskowitz Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
7
Variable manufacturing overhead
$
3
Fixed manufacturing overhead per year
$
480,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
84,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
12,000
10,000
Units sold during the year
9,000
10,000
Units in ending inventory
3,000
3,000
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $56,000
B) $224,000
C) $80,000
D) $164,000
239
197) Moskowitz Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
13
Direct labor
$
7
Variable manufacturing overhead
$
3
Fixed manufacturing overhead per year
$
480,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
6
Fixed selling and administrative expense per year
$
84,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced during the year
12,000
10,000
Units sold during the year
9,000
10,000
Units in ending inventory
3,000
3,000
The net operating income (loss) under variable costing in Year 2 is closest to:
A) $80,000
B) $680,000
C) $620,000
D) $56,000
