## Units in beginning inventory

1.A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
Selling price \$ 182
Units in beginning inventory 0
Units produced 13,900
Units sold 13,000
Units in ending inventory 900
Variable costs per unit:
Direct materials \$ 54
Direct labor \$ 45
Variable selling and administrative expense \$ 15
Fixed costs:
Fixed selling and administrative expense \$169,000
What is the total period cost for the month under variable costing?
\$500,400
\$364,000
\$669,400
\$864,400
2.A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
Units in beginning inventory 0
Units produced 4,850
Units sold 4,750
Units in ending inventory 100
Variable costs per unit:
Direct materials \$ 58
Direct labor \$ 60
Variable selling and administrative expense \$ 21
Fixed costs:
Fixed selling and administrative expense \$ 47,500
What is the variable costing unit product cost for the month?
\$162 per unit
\$183 per unit
\$141 per unit
\$145 per unit
3.Beamish Inc., which produces a single product, has provided the following data for its most recent
month of operations:
Number of units produced 5,400
Variable costs per unit:
Direct materials \$ 104
Direct labor \$ 86
Variable selling and administrative expense \$ 14
Fixed costs:
Fixed selling and administrative expense \$394,200
There were no beginning or ending inventories. The absorption costing unit product cost was:
\$190 per unit
\$238 per unit
\$201 per unit
\$325 per unit
4.A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
Selling price \$ 154
Units in beginning inventory 0
Units produced 2,560
Units sold 2,230
Units in ending inventory 330
Variable costs per unit:
Direct materials \$ 51
Direct labor \$ 24
Variable selling and administrative expense \$ 16
Fixed costs:
Fixed selling and administrative expense \$11,150
The total gross margin for the month under absorption costing is:
\$62,440
\$15,610
\$96,240
\$107,040
5.Dukelow Corporation has two divisions: the Governmental Products Division and the Export
Products Division. The Governmental Products Division’s divisional segment margin is \$41,300 and
the Export Products Division’s divisional segment margin is \$93,700. The total amount of common
fixed expenses not traceable to the individual divisions is \$106,800. What is the company’s net
operating income (loss)?
Brewer 8e Rechecks 2018-06-22
\$241,800
\$135,000
\$28,200
(\$135,000)
6.Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month
appear below:
Total
Company Division L Division Q
Sales \$ 587,000 \$ 172,000 \$ 415,000
Variable expenses 376,090 98,040 278,050
Contribution margin 210,910 73,960 136,950
Traceable fixed expenses 105,290 30,870 74,420
Segment margin 105,620 \$ 43,090 \$ 62,530
Common fixed expenses 68,550
Net operating income \$ 37,070
The break-even in sales dollars for Division Q is closest to: (Round your intermediate calculations
to 2 decimal places.)
\$279,130
\$225,515
\$213,388
\$421,820
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7.WV Construction has two divisions: Remodeling and New Home Construction. Each division has
an on-site supervisor who is paid a salary of \$90,000 annually and one salaried estimator who is
paid \$50,000 annually. The corporate office has two office administrative assistants who are paid
salaries of \$54,000 and \$39,000 annually. The president’s salary is \$159,000. How much of these
salaries are common fixed expenses?
\$159,000
\$252,000
\$93,000
\$328,000
8.Aaron Corporation, which has only one product, has provided the following data concerning its
most recent month of operations:
Selling price \$ 127
Units in beginning inventory 0
Units produced 6,650
Units sold 6,350
Units in ending inventory 300
Variable costs per unit:
Direct materials \$ 19
Direct labor \$ 49
Variable selling and administrative expense \$ 13
Fixed costs:
Fixed selling and administrative expense \$ 26,100
What is the unit product cost for the month under variable costing?
\$94 per unit
\$121 per unit
\$108 per unit
\$81 per unit
9.Helmers Corporation manufactures a single product. Variable costing net operating income last
year was \$74,000 and this year was \$88,700. Last year, \$27,600 in fixed manufacturing overhead
costs were released from inventory under absorption costing. This year, \$10,400 in fixed
manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income last year?
\$78,300
\$74,000
\$46,400
\$101,600
10.Tubaugh Corporation has two major business segments–East and West. In December, the East
business segment had sales revenues of \$420,000, variable expenses of \$225,000, and traceable
fixed expenses of \$49,000. During the same month, the West business segment had sales revenues
of \$1,090,000, variable expenses of \$552,000, and traceable fixed expenses of \$209,000. The
common fixed expenses totaled \$326,000 and were allocated as follows: \$163,000 to the East
The contribution margin of the West business segment is:
\$538,000
\$(27,000)
\$753,000
\$146,000