1.Rock Stone LLC uses variable costing and absorption costing. Using the absorption costing income statement direct materials are: a. Inventoriable b. Not inventoriable

2.Smith LLC sells inexpensive toolkits. Smith sells 2 models, model A and model B. Model As selling price is $20 and has a variable cost of $14. Model B has a selling price of $30 and has a variable cost of $20. Typically Smith sells three times as many model Bs as model As. Fixed costs are $270,000. How many model Bs must Smith sell to breakeven? A. 21,500 b. 22,500 c. 23,500 d. None of the above

3.Charles LLC sells inexpensive toolkits. Charles sells 2 models, model A and model B. Model As selling price is $20 and has a variable cost of $14. Model B has a selling price of $30 and has a variable cost of $20. Typically Charles sells three times as many model Bs as model As. Fixed costs are $270,000. How many units are required to breakeven? A. 20,000 b. 30,000 c. 40,000 d. None of the above

4.Ellision LLC uses variable costing and absorption costing. In the variable costing income statement which of the following is not a period cost? A. Fixed administrative expenses b. Fixed Manufacturing overhead c. Variable manufacturing overhead d. None of the above

5.If Ezra collects 80% of its credit sales in the month of the sale and 20% in the month after the sale how much will Ezra collect in March on a $220,000 credit sale in January? A. $176,000 b. $44,000 c. $88,000 d. none of the above

6.Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produces to make direct materials purchases $54,000? A. 3,000 b. 4,000 c. 1,000 d. cannot tell from data given