Hobbies Inc. has the following information related to the manufacture and sale of credit items for Year 1 and Year 2: Year 1 Year 2 Production unit Sales price per unit Units sold Direct materials per unit 3,000 2,750 $ 70 $ 70 2,250 3,200 $ 10 $ 10 Direct labor per unit Variable manufacturing overhead per unit $6 $6 $3 $ 3 Fixed manufacturing overhead costs $ 55,000 $ 55,000 Variable selling and admin. costs per unit $ 2 $2 Fixed selling and admin. costs $ 20,000 $ 20,000 There was no beginning inventory in Year 1. Using variable costing, what is the value of ending inventory in Year 2? A. $1,350 B. $8,550 C. $5,700 D. $900

Hobbies Inc. has the following information related to the manufacture and sale of credit items for Year 1 and Year 2: Year 1 Year 2 Production unit Sales price per unit Units sold Direct materials per unit 3,000 2,750 $ 70 $ 70 2,250 3,200 $ 10 $ 10 Direct labor per unit Variable manufacturing overhead per unit $6 $6 $3 $ 3 Fixed manufacturing overhead costs $ 55,000 $ 55,000 Variable selling and admin. costs per unit $ 2 $2 Fixed selling and admin. costs $ 20,000 $ 20,000 There was no beginning inventory in Year 1. Using variable costing, what is the value of ending inventory in Year 2? A. $1,350 B. $8,550 C. $5,700 D. $900

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18
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Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units 600 Units produced 2,800 Units sold 2,900 Ending balance, in units 500 Production costs: Variable manufacturing costs per unit $60 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? A. $84 B. $75 C. $130 D. $74
From the following data, determine the Cost of Goods Manufactured for 2020: Accounts Amounts Sales $ 870,000 Direct Materials used 170,000 Direct Labor costs 90,000 Total Overhead costs Work-in-Process inventory, 12-31-2019 Finished Goods inventory, 12-31-2019 Work-in-Process inventory, 12-31-2020 Finished Goods inventory, 12-31-2020 60,000 $ 35,000 $ 40,000 30,000 25,000 Rent, utilities for corporate headquarters building 70,000 A) $315,000 B) $325,000 C) $330,000 D) $340,000
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