Accounting Chapter 6 8 Farris Corporation, which has only one product, has provided

141

133) Elison 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

0

Units produced

7,500

Units sold

7,200

Units in ending inventory

300

Variable costs per unit:

Direct materials

$

24

Direct labor

$

34

Variable manufacturing overhead

$

1

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

217,500

Fixed selling and administrative expense

$

115,200

What is the net operating income for the month under variable costing?

A) $8,700

B) $5,700

C) $14,400

D) $(12,000)

143

134) Elison 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

0

Units produced

7,500

Units sold

7,200

Units in ending inventory

300

Variable costs per unit:

Direct materials

$

24

Direct labor

$

34

Variable manufacturing overhead

$

1

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

217,500

Fixed selling and administrative expense

$

115,200

What is the net operating income for the month under absorption costing?

A) $8,700

B) $5,700

C) $14,400

D) $(12,000)

135) Farris Corporation, which has only one product, has provided the following data concerning

its most recent month of operations:

Selling price

$

78

Units in beginning inventory

0

Units produced

8,800

Units sold

8,700

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

18

Direct labor

$

10

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

255,200

Fixed selling and administrative expense

$

87,000

What is the unit product cost for the month under variable costing?

A) $61 per unit

B) $37 per unit

C) $32 per unit

D) $66 per unit

Direct materials

18

Direct labor

10

Variable manufacturing overhead

4

Variable costing unit product cost

32

136) Farris Corporation, which has only one product, has provided the following data concerning

its most recent month of operations:

Selling price

$

78

Units in beginning inventory

0

Units produced

8,800

Units sold

8,700

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

18

Direct labor

$

10

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

255,200

Fixed selling and administrative expense

$

87,000

What is the unit product cost for the month under absorption costing?

A) $32 per unit

B) $61 per unit

C) $37 per unit

D) $66 per unit

Direct materials

18

Direct labor

10

Variable manufacturing overhead

4

produced)

29

Absorption costing unit product cost

61

147

137) Farris Corporation, which has only one product, has provided the following data concerning

its most recent month of operations:

Selling price

$

78

Units in beginning inventory

0

Units produced

8,800

Units sold

8,700

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

18

Direct labor

$

10

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

255,200

Fixed selling and administrative expense

$

87,000

What is the net operating income for the month under variable costing?

A) $14,500

B) $17,400

C) $11,300

D) $2,900

149

138) Farris Corporation, which has only one product, has provided the following data concerning

its most recent month of operations:

Selling price

$

78

Units in beginning inventory

0

Units produced

8,800

Units sold

8,700

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

18

Direct labor

$

10

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

255,200

Fixed selling and administrative expense

$

87,000

What is the net operating income for the month under absorption costing?

A) $2,900

B) $11,300

C) $17,400

D) $14,500

139) Janos 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

300

Units produced

2,000

Units sold

2,200

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

29

Direct labor

$

30

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

9

Fixed costs:

Fixed manufacturing overhead

$

34,000

Fixed selling and administrative expense

$

39,600

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?

A) $63 per unit

B) $80 per unit

C) $72 per unit

D) $89 per unit

Direct materials

29

Direct labor

30

Variable manufacturing overhead

Variable costing unit product cost

63

140) Janos 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

300

Units produced

2,000

Units sold

2,200

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

29

Direct labor

$

30

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

9

Fixed costs:

Fixed manufacturing overhead

$

34,000

Fixed selling and administrative expense

$

39,600

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?

A) $80 per unit

B) $72 per unit

C) $63 per unit

D) $89 per unit

Direct materials

$

29

Direct labor

30

Variable manufacturing overhead

Fixed manufacturing overhead cost

($34,000 ÷ 2,000 units produced)

17

Absorption costing unit product cost

$

80

153

141) Janos 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

300

Units produced

2,000

Units sold

2,200

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

29

Direct labor

$

30

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

9

Fixed costs:

Fixed manufacturing overhead

$

34,000

Fixed selling and administrative expense

$

39,600

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?

A) $8,800

B) $12,200

C) $1,700

D) $24,800

155

142) Janos 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

300

Units produced

2,000

Units sold

2,200

Units in ending inventory

100

Variable costs per unit:

Direct materials

$

29

Direct labor

$

30

Variable manufacturing overhead

$

4

Variable selling and administrative expense

$

9

Fixed costs:

Fixed manufacturing overhead

$

34,000

Fixed selling and administrative expense

$

39,600

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?

A) $8,800

B) $24,800

C) $1,700

D) $12,200

157

143) Keyser Corporation, which has only one product, has provided the following data

concerning its most recent month of operations:

Selling price

$

118

Units in beginning inventory

400

Units produced

2,100

Units sold

2,300

Units in ending inventory

200

Variable costs per unit:

Direct materials

$

37

Direct labor

$

23

Variable manufacturing overhead

$

3

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

73,500

Fixed selling and administrative expense

$

29,900

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?

A) $4,600

B) $11,600

C) $24,200

D) $7,000

159

144) Keyser Corporation, which has only one product, has provided the following data

concerning its most recent month of operations:

Selling price

$

118

Units in beginning inventory

400

Units produced

2,100

Units sold

2,300

Units in ending inventory

200

Variable costs per unit:

Direct materials

$

37

Direct labor

$

23

Variable manufacturing overhead

$

3

Variable selling and administrative expense

$

5

Fixed costs:

Fixed manufacturing overhead

$

73,500

Fixed selling and administrative expense

$

29,900

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?

A) $7,000

B) $4,600

C) $11,600

D) $24,200