Question
Hello, thank you to the person who is willing to help me. I would like to see the equation, on how you got the answer
Hello, thank you to the person who is willing to help me. I would like to see the equation, on how you got the answer (all of them)
1. During its first year of operations, Vintage Co. made 4,000 units of a product and sold 3,000 units for $600,000. There was no ending work in process. Total costs were $600,000: $250,000 of direct materials and direct manufacturing labor, $200,000 of manufacturing overhead costs (50% fixed), and $150,000 of nonmanufacturing sots (100% variable). The cost of the 1,000 units of ending finished goods in inventory under variable costing is:
a. $112,500
b. $125,000
c. $87,500
d. none of the above
2. Using the information in question 1, the cost of ending finished goods inventory under absorption costing is:
a. $112,500
b. $150,000
c. $25,000
d. none of the above
3. Using the information in question 1, the contribution margin is:
a. $337,500
b. $187,500
c. $100,000
d. none of the above
4. Using the information in question 1, the gross margin is:
a. $100,000
b. $150,000
c. $262,500
d. none of the above
Indiana Corporation began its operations on January 1, 2005, and produces a single product that sells for $9.00 per unit. Production is 100,000 units and 90,000 units are sold in 2005. There is no work-in-process inventory at December 31, 2005. Manufacturing, marketing, and administrative costs for 2005 are as follows:
Total Fixed Costs Variable Cost Per Unit
Direct materials $1.75
Direct manufacturing labor $1.25
Indirect manufacturing costs $100,000
Nonmanufacturing costs 70,000
The cost driver for manufacturing costs is units produced, and the cost driver for nonmanufacturing costs is units sold. Indianas operating income for 2005 using variable costing is:
a. $181,000
b. $271,000
c. $281,000
d. $371,000
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