Question
1) Queens Co. produces a single product. Information about the product for the past year is as follows: Production (in units) 100,000 Sales (units) 80,000
1) Queens Co. produces a single product. Information about the product for the past year is as follows:
Production (in units) 100,000
Sales (units) 80,000
Selling price/unit $20.00
Machine hours 50,000
Manufacturing costs:
Direct materials $ 80,000
Direct labor $240,000
Variable overhead $ 40,000
Fixed overhead $200,000
Nonmanufacturing costs:
Variable selling $48,000
Fixed selling $20,000
There were no beginning inventories.
(Round amounts to two decimal places.)
The unit product cost for this product using variable costing would be
| a. | $4.00 | c. | $3.20 |
| b. | $3.60 | d. | $2.80 |
2!)
Refer to the data in question 1 The unit product cost for the product using absorption costing would be
| a. | $5.60 | c. | $5.00 |
| b. | $7.60 | d. | $4.00 |
3)
Refer to the data in question 1. The products variable cost of goods sold would be
| a. | $312,000 | c. | $288,000 |
| b. | $296,000 | d. | $256,000 |
4)Refer to the data in question 1. If Queens Co. uses absorption costing, the cost of goods sold would be
| a. | $860,000 | c. | $704,000 |
| b. | $728,000 | d. | $448,000 |
5) Refer to the data in question 1. If Queens Co. uses variable costing, its operating income would be
| a. | $1,264,000 | c. | $1,044,000 |
| b. | $1,064,000 | d. | $1,084,000
|
6). Refer to the data in question 1. If Queens Co. uses absorption costing, its operating income is:
a. $1,264,000 c. $1,044,000
b. $1,064,000 d. $1,084,000
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Internal Audit Practice From A To Z
Authors: Patrick Onwura Nzechukwu
1st Edition
149874205X, 978-1498742054
