1. A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. b. $140,000 40,000 20,000 4,000 C. d. $ 34,000 2,000 36,000 If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, a. the amount of inventory on hand at the end of the month is a. under absorption costing b. the amount of inventory on hand under variable costing c. will operating income reported under variable costing be more or less than under absorption costing? d. the amount of operating income under absorption costing would be? $204,000

1. A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. b. $140,000 40,000 20,000 4,000 C. d. $ 34,000 2,000 36,000 If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, a. the amount of inventory on hand at the end of the month is a. under absorption costing b. the amount of inventory on hand under variable costing c. will operating income reported under variable costing be more or less than under absorption costing? d. the amount of operating income under absorption costing would be? $204,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,600 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $180,000 222,000 244,700 101,400 O a. $47,090 O b. $54,473 O c. $66,175 O d. $193,160 $120,400 40,300 $748,100 160,700 If 1,500 units remain unsold at the end of the month and sales total $1,055,000 for the month, the amount of operating income reported on the variable costing income statement would be
A business operated at 100% of capacity during its first month, with the following results: Sales (110 units) $660,000 Production costs (138 units): Direct materials $89,507 Direct labor 22,853 Variable factory overhead 39,992 Fixed factory overhead 38,088 190,440 Operating expenses: Variable operating expenses $5,766 Fixed operating expenses 4,136 9,902 The amount of gross profit that would be reported on the absorption costing income statement is a.$508,200 b.$498,298 c.$502,434 d.$659,862
A business operated at 100% of capacity during its first month, with the following results: Sales (107 units) $577,800 Production costs (134 units): Direct materials $78,221 Direct labor 19,971 Variable factory overhead 34,950 Fixed factory overhead 33,286 166,428 Operating expenses: Variable operating expenses $5,953 Fixed operating expenses 4,852 10,805 The amount of gross profit that would be reported on the absorption costing income statement is a.$577,666 b.$434,101 c.$444,906 d.$438,953
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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $70,000 20,000 10,000 2,000 $17,000 1,000 $102,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is a. $54,000 b. $50,000 c. $70,000 d. not reported
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,800 units): Direct materials $177,000 Direct labor 227,000 Variable factory overhead 261,600 Fixed factory overhead 100,400 $766,000 Operating expenses: Variable operating expenses $132,300 Fixed operating expenses 42,700 175,000 If 1,800 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a. $60,498 b. $72,536 Oc. $69,636 O d. $85,545
A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
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A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $60,000 15,000 27,000 24,000 126,000 Variable operating expenses $5,150 Fixed operating expenses 4,080 9,230 The amount of contribution margin that would be reported on the variable costing income statement is a. $470,770 Ob. $389,170 Oc. $393.250 Od. $479,880
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials $90,000 $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 69,000 9,000 What is the amount of the gross profit that would be reported on the absorption costing income statement? a. $21,000 b. $27,900 c. $18,000 d. $18,900