7

8

Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S 109 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory 650 8.550 8,650 550 Variable costs per unit: Direct naterials S 23 $ 40 Direct labor Variable manufacturing overhead Variable selling and administrative expense 4 14 Fixed costs: $ 68,400 $162,400 Fixed manufacturing overhead Fixed selling and administrative expense The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month What is the net operating income for the month under absorption costing? Multiple Choice $10,600 $3,500 $11,400 $18,100 The BRS Corporation makes collections on sales according to the following schedule 30% in month of sale 668 in month following sale 4 in second month following sale The following sales have been budgeted: Sales April $130,000 $150,000 $140,000 May June Budgeted cash collections in June would be: Multiple Choice $141,000 $140,000 $146,200 $140,520