1. Tango Enterprises manufacturing costs for 2017 are as follows:

• Direct materials $65,000
• Direct labor $118,000
• Manufacturing supplies $9,000
• Depreciation of factory equipment $22,000
• Other fixed manufacturing expenses $43,000

What amount should be considered product costs for external reporting purposes?

a.} $248,000

b.} $183,000

c.} $192,000

d.} $257,000

2. Tractor Productions experienced the following costs in 2017:

• Direct materials $1.50 per unit
• Direct labor $2.60 per unit
• Variable manufacturing overhead $1.20 per unit
• Variable selling costs $4.40 per unit
• Fixed manufacturing overhead $84,000
• Fixed sales costs $32,000
• Fixed administrative costs: $15,000

During 2017, the company manufactured 65,000 units and sold 62,000 units. The unit cost is the same throughout the year. The beginning inventory is zero. How much will the company report as total variable product costs on its 2017 contribution income statement?

a.} $344,000

b.} $630,000

c.} $328,600

d.} $601,400

3. Doggie Foods had 2,000 25-pound bags of dog food in beginning inventory. During 2017, the company manufactured 16,000 bags and sold 15,000 units. Each bag of food sells for $17. Assuming the same unit costs in all years, the company experienced the following costs:

• Direct materials $4.50 per unit
• Direct labor $2.10 per unit
• Variable manufacturing overhead $1.90 per unit
• Variable selling costs $1.00 per unit
• Fixed manufacturing overhead $48,000
• Fixed sales costs $24,000
• Fixed Administrative Expenses $30,000

If the company uses the variable costing method, at what amount is the year's ending inventory valued?

a.} $28,500

b.} $34,500

c.} $9,000

d} $25,500