6-279
6-280
96.
Peterson Corporation produces a single product. Data from the company’s records for last
year follow:
Units in beginning inventory
0
Units produced
70,000
Units sold
60,000
Sales
$1,400,000
Manufacturing costs:
Variable
$630,000
Fixed
$315,000
Selling and administrative expenses:
Variable
$98,000
Fixed
$140,000
Under variable costing the value of the ending finished goods inventory would be:
6-281
6-282
97.
Peterson Corporation produces a single product. Data from the company’s records for last
year follow:
Units in beginning inventory
0
Units produced
70,000
Units sold
60,000
Sales
$1,400,000
Manufacturing costs:
Variable
$630,000
Fixed
$315,000
Selling and administrative expenses:
Variable
$98,000
Fixed
$140,000
Sales
$1,400,000
Variable expenses:
Variable cost of goods sold (60,000 units × $9 per unit)
$540,000
Variable selling and administrative
Contribution margin
Fixed expenses:
Under variable costing, net operating income would be:
6-283
6-284
98.
Jarvix Corporation, which has only one product, has provided the following data concerning
its most recent month of operations:
Selling price
$111
Units in beginning inventory
400
Units produced
8,800
Units sold
8,900
Units in ending inventory
300
Variable costs per unit:
Direct materials
$34
Direct labor
$37
Variable manufacturing overhead
$3
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$61,600
Fixed selling and administrative
$169,100
The company produces the same number of units every month, although the sales in units
vary from month to month. The company’s variable costs per unit and total fixed costs
have been constant from month to month.
What is the unit product cost for the month under variable costing?
6-285
6-286
99.
Jarvix Corporation, which has only one product, has provided the following data concerning
its most recent month of operations:
Selling price
$111
Units in beginning inventory
400
Units produced
8,800
Units sold
8,900
Units in ending inventory
300
Variable costs per unit:
Direct materials
$34
Direct labor
$37
Variable manufacturing overhead
$3
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$61,600
Fixed selling and administrative
$169,100
Direct materials
The company produces the same number of units every month, although the sales in units
vary from month to month. The company’s variable costs per unit and total fixed costs
have been constant from month to month.
What is the unit product cost for the month under absorption costing?
6-287
6-288
100.
Jarvix Corporation, which has only one product, has provided the following data concerning
its most recent month of operations:
Selling price
$111
Units in beginning inventory
400
Units produced
8,800
Units sold
8,900
Units in ending inventory
300
Variable costs per unit:
Direct materials
$34
Direct labor
$37
Variable manufacturing overhead
$3
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$61,600
Fixed selling and administrative
$169,100
Direct materials
The company produces the same number of units every month, although the sales in units
vary from month to month. The company’s variable costs per unit and total fixed costs
have been constant from month to month.
What is the net operating income for the month under variable costing?
6-289
6-290
101.
Jarvix Corporation, which has only one product, has provided the following data concerning
its most recent month of operations:
Selling price
$111
Units in beginning inventory
400
Units produced
8,800
Units sold
8,900
Units in ending inventory
300
Variable costs per unit:
Direct materials
$34
Direct labor
$37
Variable manufacturing overhead
$3
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$61,600
Fixed selling and administrative
$169,100
Direct materials
The company produces the same number of units every month, although the sales in units
vary from month to month. The company’s variable costs per unit and total fixed costs
have been constant from month to month.
What is the net operating income for the month under absorption costing?
6-291
6-292
102.
Johnston Corporation manufactures a single product that it sells for $30 per unit. The
company has the following cost structure:
Variable costs per unit:
Production
$8
Selling and administrative
$5
Fixed costs in total:
Production
$80,000
Selling and administrative
$60,000
Last year there was no beginning inventory. During the year, 20,000 units were produced
and 17,000 units were sold.
Under absorption costing, the unit product cost would be:
6-293
103.
Johnston Corporation manufactures a single product that it sells for $30 per unit. The
company has the following cost structure:
Variable costs per unit:
Production
$8
Selling and administrative
$5
Fixed costs in total:
Production
$80,000
Selling and administrative
$60,000
Variable expenses:
Contribution margin
Fixed expenses:
Last year there was no beginning inventory. During the year, 20,000 units were produced
and 17,000 units were sold.
The company’s net operating income for the year under variable costing is:
6-294
6-295
104.
Hatfield Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$123
Units in beginning inventory
0
Units produced
6,400
Units sold
6,100
Units in ending inventory
300
Variable costs per unit:
Direct materials
$45
Direct labor
$30
Variable manufacturing overhead
$1
Variable selling and administrative
$8
Fixed costs:
Fixed manufacturing overhead
$140,800
Fixed selling and administrative
$91,500
Direct materials
Direct labor
Variable manufacturing overhead
What is the unit product cost for the month under variable costing?
6-296
6-297
105.
Hatfield Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$123
Units in beginning inventory
0
Units produced
6,400
Units sold
6,100
Units in ending inventory
300
Variable costs per unit:
Direct materials
$45
Direct labor
$30
Variable manufacturing overhead
$1
Variable selling and administrative
$8
Fixed costs:
Fixed manufacturing overhead
$140,800
Fixed selling and administrative
$91,500
Variable costs per unit:
Direct materials
$45
Direct labor
Variable manufacturing overhead
1
The total contribution margin for the month under variable costing is:
6-298