Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 12,000 9,000 Units sold 9,000 10,000 Units in ending inventory 3,000 2,0000 Which of the following statements is true for Year 1? The amount of fixed manufacturing overhead deferred in inventories is $108,000 The amount of fixed manufacturing overhead released from inventories is $108,000 The amount of fixed manufacturing overhead deferred in inventories is $513,000 The amount of fixed manufacturing overhead released from inventories is $513,000
Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 12,000 9,000 Units sold 9,000 10,000 Units in ending inventory 3,000 2,0000 Which of the following statements is true for Year 1? The amount of fixed manufacturing overhead deferred in inventories is $108,000 The amount of fixed manufacturing overhead released from inventories is $108,000 The amount of fixed manufacturing overhead deferred in inventories is $513,000 The amount of fixed manufacturing overhead released from inventories is $513,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Neef Corporation has provided the following data for its two most recent years of operation:
Which of the following statements is true for Year 1?
| Selling price per unit | $ | 84 |
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 12 |
| Direct labor | $ | 5 |
| Variable manufacturing |
$ | 4 |
| Fixed manufacturing overhead per year | $ | 432,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 5 |
| Fixed selling and administrative expense per year | $ | 61,000 |
| Year 1 | Year 2 | ||
| Units in beginning inventory | 0 | 3,000 | |
| Units produced | 12,000 | 9,000 | |
| Units sold | 9,000 | 10,000 | |
| Units in ending inventory | 3,000 | 2,0000 |
Which of the following statements is true for Year 1?
|
The amount of fixed manufacturing overhead deferred in inventories is $108,000
|
||
|
The amount of fixed manufacturing overhead released from inventories is $108,000
|
||
|
The amount of fixed manufacturing overhead deferred in inventories is $513,000
|
||
|
The amount of fixed manufacturing overhead released from inventories is $513,000
|
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