QUESTION 1:

During the most recent year, Hampton Company had the following data associated with the product it makes:

Units in beginning inventory	550
Units produced	10,000
Units sold ($350 per unit)	9,800
Variable costs per unit:
Direct materials	$27
Direct labour	$95
Variable overhead	$15
Fixed costs:
Fixed overhead per unit produced	$35
Fixed selling and administrative	$120,000

Required:

1. How many units are in ending inventory? _______________________units

2. Using absorption costing, calculate the per-unit product cost. $______________________ per unit

3. What is the value of ending inventory under absorption costing?$_____________________

QUESTION 2:

During the most recent year, Hampton Company had the following data associated with the product it makes:

Units in beginning inventory	550
Units produced	10,000
Units sold ($350 per unit)	9,800
Variable costs per unit:
Direct materials	$27
Direct labour	$95
Variable overhead	$15
Fixed costs:
Fixed overhead per unit produced	$35
Fixed selling and administrative	$120,000

Required:

1. How many units are in ending inventory? ____________ units

2. Using variable costing, calculate the per-unit product cost. $________________per unit

3. What is the value of ending inventory under variable costing? $_________________

QUESTION 3:

During the most recent year, Bennett Company had the following data:

Units in beginning inventory
Units produced	8,000
Units sold ($70 per unit)	7,500
Variable costs per unit:
Direct materials	$20
Direct labour	$14
Variable overhead	$3
Fixed costs:
Fixed overhead per unit produced	$5
Fixed selling and administrative	$142,000

Required:

Question Content Area

1. Calculate the cost of goods sold under absorption costing. $______________________

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2. an income statement using absorption costing.

(Cost of goods sold/Gross margin/Sales/Selling and administrative expenses)	$____
(Less: Cost of goods sold/Less: Gross margin/Less: Sales/Less: Selling and administrative expenses)	_____
(Cost of goods sold/Gross margin/Sales/Selling and administrative expenses)	$________
(Less: Cost of goods sold/Less: Gross margin/Less: Sales/Less: Selling and administrative expenses)	___________
(Operating income/Operating loss)	$_______

QUESTION 4:

During the most recent year, Bennett Company had the following data:

Units in beginning inventory
Units produced	10,000
Units sold ($47 per unit)	9450
Variable costs per unit:
Direct materials	$9
Direct labour	$6
Variable overhead	$4
Fixed costs:
Fixed overhead per unit produced	$5
Fixed selling and administrative	$139,500

Required:

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1. Calculate the cost of goods sold under variable costing. $______________

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2. an income statement using variable costing.

(Fixed overhead/Fixed selling and administrative expenses/Sales/Variable cost of goods sold)		$_____
(Less: Fixed overhead/Less: Fixed selling and administrative expenses/Less: Sales/Less: Variable costs)		_____
(Contribution margin/Fixed overhead/Fixed selling and administrative expenses/Sales/Variable cost of goods sold)		$____
Less fixed expense:
(Contribution margin/Fixed overhead/Sales/Variable cost of goods sold)	$_____
(Contribution margin/Fixed selling and administrative expenses/Sales/Variable cost of goods sold)	____	_____
(Operating income/Operating loss)		$_____

QUESTION 5:

Peninsula Garden Centres Inc. produces tomato plants and vines in a greenhouse/nursery operation. The following information was provided for the coming year.

	Tomatoes	Vines
Sales	$1,400,000	$3,500,000
Variable cost of goods sold	480,000	1,300,000
Direct fixed overhead	270,000	220,000

A sales commission of 4 percent of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $135,000 for the tomato plants and $84,000 for the vines.

Common fixed overhead for the nursery operation was estimated to be $1,350,000; common selling and administrative expense was estimated to be $410,000.

Required:

a segmented income statement for Peninsula Garden Centres Inc. for the coming year, using variable costing.

	Tomatoes	Vines	Total
(Common selling and administrative/Contribution margin/Direct fixed overhead/Sales/Segment margin)	$___	$___	$___
(Common fixed overhead/Common selling and administrative/Contribution margin/Direct fixed overhead/Direct selling and administrative/Variable cost of goods sold)	___	___	___
(Common fixed overhead/Contribution margin/Direct selling and administrative/Sales/Segment margin/Variable selling expense)	___	___	___
(Common fixed overhead/Common selling and administrative/Contribution margin/Direct fixed overhead/Direct selling and administrative)	___	___	___
Less direct fixed expenses:
(Direct fixed overhead/Sales/Segment margin/Variable cost of goods sold/Variable selling expense)	___	___	___
(Common fixed overhead/Common selling and administrative/Contribution margin/Direct selling and administrative/Sales)	___	___	___
(Contribution margin/Direct fixed overhead/Sales/Segment margin/Variable cost of goods sold)	$___	$___	___
Less common fixed expenses:
(Common fixed overhead/Contribution margin/Direct selling and administrative/Variable cost of goods sold/Variable selling expense)			___
(Common selling and administrative/Direct selling and administrative/Segment margin/Variable cost of goods sold/Variable selling expense)			___
(Operating income/Operating loss)			$___-