Lone Star has computed the following unit costs for the year just ended: Direct materials used $12 Direct labor 18 Variable manufacturing o/head 25 Fixed manufacturing o/head 29 Variable Selling and admin costs 10 Fixed selling and admin costs Under variable costing, each unit of the company's inventory would be carried at: A. $35. B. $55. C. $65. D. $84. E. None of the above.

Lone Star has computed the following unit costs for the year just ended: Direct materials used $12 Direct labor 18 Variable manufacturing o/head 25 Fixed manufacturing o/head 29 Variable Selling and admin costs 10 Fixed selling and admin costs Under variable costing, each unit of the company's inventory would be carried at: A. $35. B. $55. C. $65. D. $84. E. None of the above.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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MC Qu. 8-30 Falisari Corporation has computed the following... Falisari Corporation has computed the following unit costs for the year just ended: Direct material used $ 22 Direct labor 19 Variable manufacturing overhead 37 Fixed manufacturing overhead 39 Variable selling and administrative cost 17 Fixed selling and administrative cost 30 Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing? Variable Costing Absorption Costing A. $ 78 $ 117 B. $ 78 $ 147 C. $ 95 $ 117 D. $ 95 $ 147 E. None of the answers is correct. Multiple Choice Choice A Choice B Choice C Choice D Choice E
Santa Fe Corporation has computed the following unit costs for the year just: Direct material used Direct labor $ 25 19 Variable manufacturing overhead 35 Fixed manufacturing overhead 40 Variable selling and administrative cost 17 Fixed selling and administrative cost 32 Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing? Variable Costing a. b. C. d. e. Absorption Costing $ 79 $ 119 79 151 96 119 96 151 some other combination
SIM Company has computed the following unit costs for the year just ended: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative cost Fixed selling and administrative cost $10 15 20 29 10 17 What is the unit cost of the company's inventory under variable costing?