Question
Units in beginning inventory= 0 Units produced= 20,000 Units sold =19,000 Variable Cost per unit: Direct materials $100 Direct labor $30 Variable MOH $20 Variable
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Units in beginning inventory= 0
Units produced= 20,000
Units sold =19,000
Variable Cost per unit:
Direct materials $100
Direct labor $30
Variable MOH $20
Variable Selling and Administrative$10
Fixed Costs:
Fixed MOH $400,000
Fixed Selling and Administrative$100,000
What is the unit product cost under absorption costing?
a. $160
b. $170
c. $180
d. $185
Units in beginning inventory= 0
Units produced= 20,000
Units sold =19,000
Variable Cost per unit:
Direct materials $100
Direct labor $30
Variable MOH $20
Variable Selling and Administrative$10
Fixed Costs:
Fixed MOH $400,000
Fixed Selling and Administrative$100,000
What is the unit product cost under absorption costing?
| a. $160 | ||
| b. $170 | ||
| c. $180 | ||
| d. $185 |
2. Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Variable Cost per unit:
Direct materials $100
Direct labor 30
Variable MOH 20
Variable Selling and Administrative 10
Fixed Costs:
Fixed MOH $400,000
Fixed Selling and Administrative 100,000
What is the unit product cost under variable costing?
| a. $150 | ||
| b. $160 | ||
| c. $170 | ||
| d. $180 |
3. Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Variable Cost per unit:
Direct materials $100
Direct labor 30
Variable MOH 20
Variable Selling and Administrative 10
Fixed Costs:
Fixed MOH $400,000
Fixed Selling and Administrative 100,000
What is the cost of ending inventory under absorption costing?
| a. $160,000 | ||
| b. $170,000 | ||
| c. $180,000 | ||
| d. $185,000 |
4. Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Variable Cost per unit:
Direct materials $100
Direct labor 30
Variable MOH 20
Variable Selling and Administrative 10
Fixed Costs:
Fixed MOH $400,000
Fixed Selling and Administrative 100,000
Which costing method will report a higher net income?
| a. Absorption costing | ||
| b. Variable costing | ||
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Auditing A Risk Based Approach to Conducting a Quality Audit
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
10th edition
978-1305080577
