Subject: Cost Management & accounting MCQ'S: Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Columbia Corporation Income Statement For the Month ended November 30 Sales ($30 per unit) $ 1,200,000 Variable expenses: Variable cost of goods sold 720,000 Variable selling expense 160,000 Total variable expenses 880,000 Contribution margin 320,000 Fixed expenses: Manufacturing 140,000 Selling and administrative 35,000 Total fixed expenses 175,000 Net operating income $ 145,000 During November, 35,000 units were manufactured and 8,000 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months. The value of the company's inventory on November 30 under absorption costing would be: a) $81,000 b) $54,000 c) $66,000 d) $78,000
Subject: Cost Management & accounting
MCQ'S:
Columbia Corporation produces a single product. The company's variable costing income statement for November appears below:
Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($30 per unit) $ 1,200,000
Variable expenses:
Variable cost of goods sold 720,000
Variable selling expense 160,000
Total variable expenses 880,000
Contribution margin 320,000
Fixed expenses:
Manufacturing 140,000
Selling and administrative 35,000
Total fixed expenses 175,000
Net operating income $ 145,000
During November, 35,000 units were manufactured and 8,000 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months.
The value of the company's inventory on November 30 under absorption costing would be:
a) $81,000
b) $54,000
c) $66,000
d) $78,000
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