For the month of June, Clara Gum Company had cost per equivalent unit of $0.60 for materials (sugar, artificial flavors, etc.) and $.80 for conversion costs (labor and overhead). At Clara Gum, units are measured in packs. The company began the month with 5,000 packs of gum. By the end of the month, the company had completed 55,000 packs, and 9,000 packs were in process. The in-process units were 100 percent complete with respect to material and 60 percent complete with respect to labor and overhead. How much is the cost of items completed and transferred to finished goods inventory?

Three costs incurred by Hanson Company are summarized below at two different activity levels, 500 and 800 units:

500 Units

800 Units

Cost A	$12,000	$16,000
Cost B	$24,000	$42,000
Cost C	$17,500	$28,000

Which of these costs are variable?

A.

$86,720

B.

$38,400

C.

$9,720

D.

$77,000

Slider Slicker experienced the following costs in 2011 (assume the same unit costs in all years):

Direct materials	$8.75 / unit
Direct labor	$5.50 / unit
Manufacturing Overhead Costs

	Variable	$4.85 / unit
	Fixed	$87,250

Selling & Administrative Costs

	Variable selling	$1.05 / unit
	Fixed selling	$8,000
	Fixed administrative	$2,000

There were 6,000 units in beginning inventory. During the year the company manufactured 60,000 units and sold 63,500 units. If net income using variable costing was $109,750, how much is net income using full costing

A.

$103,375

B.

$113,375

C.

$105,375

D.

$111,375

Three costs incurred by Hanson Company are summarized below at two different activity levels, 500 and 800 units:

500 Units

800 Units

Cost A	$12,000	$16,000
Cost B	$24,000	$42,000
Cost C	$17,500	$28,000

Which of these costs are variable?

Answer

	A.	A, B, and C
	B.	A and C
	C.	A only
	D.	C only