| 1.A company produces a single product. Variable production costs are $13.1 per unit and variable selling and administrative expenses are $4.1 per unit. Fixed manufacturing overhead totals $47,000 and fixed selling and administration expenses total $51,000. Assuming a beginning inventory of zero, production of 5,100 units and sales of 4,150 units, the dollar value of the ending inventory under variable costing would be: | 1b. Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | | Selling price | $112 | | Units in beginning inventory | 0 | | Units produced | 8,950 | | Units sold | 8,550 | | Units in ending inventory | 400 | | Variable costs per unit: | | | Direct materials | $18 | | Direct labor | $60 | | Variable manufacturing overhead | $6 | | Variable selling and administrative | $10 | | Fixed costs: | | | Fixed manufacturing overhead | $134,250 | | Fixed selling and administrative | $8,800 | What is the net operating income for the month under absorption costing? | 2. Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | | Selling price | $104 | | Units in beginning inventory | 0 | | Units produced | 8,850 | | Units sold | 8,450 | | Units in ending inventory | 400 | | Variable costs per unit: | | | Direct materials | $16 | | Direct labor | $58 | | Variable manufacturing overhead | $4 | | Variable selling and administrative | $8 | | Fixed costs: | | | Fixed manufacturing overhead | $132,750 | | Fixed selling and administrative | $8,600 | What is the net operating income for the month under variable costing? | 3. Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | | Selling price | $195 | | | | | Units in beginning inventory | 0 | | Units produced | 1,950 | | Units sold | 830 | | Units in ending inventory | 1,120 | | | | | Variable costs per unit: | | | Direct materials | $100 | | Direct labor | $35 | | Variable manufacturing overhead | $4 | | Variable selling and administrative | $15 | | Fixed costs: | | | Fixed manufacturing overhead | $25,350 | | Fixed selling and administrative | $11,620 | | What is the total period cost for the month under the variable costing? | | 4.. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: | | Selling price | $147 | | | | | Units in beginning inventory | 0 | | Units produced | 2,860 | | Units sold | 2,510 | | Units in ending inventory | 350 | | | | | Variable costs per unit: | | | Direct materials | $49 | | Direct labor | $23 | | Variable manufacturing overhead | $11 | | Variable selling and administrative | $16 | | Fixed costs: | | | Fixed manufacturing overhead | $94,380 | | Fixed selling and administrative expenses | $17,570 | | The total gross margin for the month under absorption costing is: | |
