Q 1. Strober Company sells its product for $40.00 per unit. For the current year Strober Company produced 60,000 units and sold 50,000 units. All fixed costs are the same each month throughout the year. Other information for the current year includes:

Direct Material costs $10.00 per unit

Direct Labor costs $ 8.00 per unit

Variable Manufacturing costs $ 4.00 per unit

Variable Selling & Admin costs $ 5.00 per unit

Fixed Manufacturing costs $240,000

Fixed Selling & Admin costs $100,000

Beginning inventories 0 units

What is the current year Gross Margin using full costing?

A. $700,000 B. $660,000 C. $1,779,996 D. $350,000

Q 2. Bolt Company sells heavy duty bolts for $16.00 per unit. For the current year Bolt Company produced 85,000 units and sold 80,000 units. All fixed costs are the same each month throughout the year. Other information for the current year includes:

Direct Material costs $ 5.00 per unit

Direct Labor costs $ 4.00 per unit

Variable Manufacturing costs $ 2.00 per unit

Variable Selling & Admin costs

$

1.00 per unit

Fixed Manufacturing costs $127,500

Fixed Selling & Admin costs $ 60,000

Beginning entories 0

units

What is the current year Operating Income using full costing?

A. $140,000

B. $272,500

C.$80,000

D. $1,084,998