Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information has been extracted from the financial records of McCain Corporation for its first year of operations in 2021: Units produced 10,000 Units

The following information has been extracted from the financial records of McCain Corporation for its first year of operations in 2021:

Units produced 10,000
Units sold 7,000
Variable costs per unit:
Direct material $8
Direct labor 9
Manufacturing overhead 3
SG&A/unit sold 4
Fixed costs:
Manufacturing overhead ($70,000/10,000) = 7

SG&A

Beginning inventory units (1/1/21) 0

Ending inventory units (12/31/21) 3,000

$30,000

  1. Refer to McCain Corporation. What is the total cost of the ending inventory on the balance sheet under direct costing?

  1. $60,000

  1. $70,000

  1. $80,000

  1. $90,000

2. Refer to McCain Corporation. What is the total cost of the ending inventory on the balance sheet under absorption costing?

  1. $61,000

  1. $71,000

  1. $81,000

  1. $91,000

3. Refer to McCain Corporation. What is the net income under absorption costing?

a.

$53,000

b.

$83,000

c.

$93,000

d. $103,000

4 Refer to McCain Corporation. What is the net income under direct costing?

a.

$102,000

b.

$82,000

c.

$92,000

d. $72,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Fundamentals

Authors: John Wild

4th Edition

0078025591, 9780078025594

More Books

Students also viewed these Accounting questions

Question

Test the series for convergence or divergence. n? n+1 3 n' + 4 n=1

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago

Question

Technology

Answered: 1 week ago