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What is the value of the ending inventory using the absorption costing method

What is the value of the ending inventory using the absorption costing method?

a.$240,000

b.$360,000

c.$420,000

d.$600,000

 

 

 

43.Refer to Mayberry Corporation. What is the relationship between absorption costing net income and variable costing net income?

a.Absorption costing net income is $150,000 less.

b.Absorption costing net income is $150,000 greater.

c.Absorption costing net income is $240,000 less.

d.Absorption costing net income is $240,000 greater.

 

 

 

44.Refer to Mayberry Corporation. What is the value of the ending inventory using the variable costing method?

a.$240,000

b.$350,000

c.$360,000

d.$420,000

 

 

 

Eastwood Company has the following information for 2011:

 

Selling price$150 per unit

Variable production costs$40 per unit produced

Variable selling and administrative expenses$16 per unit sold

Fixed production costs$200,000

Fixed selling and administrative expenses$140,000

Units produced10,000 units

Units sold8,000 units

 

Eastwood had no beginning inventories.

 

45.Refer to Eastwood Company. What is the ending inventory for Eastwood using the absorption costing method?

a.$80,000

b.$120,000

c.$180,000

d.$300,000

 

 

 

46.Refer to Eastwood Company. What is the cost of ending inventory for Eastwood using the variable costing method?

a.$80,000

b.$120,000

c.$180,000

d.$300,000

 

 

 

47.Refer to Eastwood Company. What is the net income for Eastwood using the absorption costing method?

a.$452,000

b.$480,000

c.$600,000

d.$1,200,000

 

 

 

48.Refer to Eastwood Company. What is the net income for Eastwood using the variable costing method?

a.$412,000

b.$480,000

c.$600,000

d.$1,200,000

 

 

 

 

Toshi Company incurred the following costs in manufacturing desk calculators:

 

Direct materials$14

Indirect materials (variable)4

Direct labour8

Indirect labour (variable)6

Other variable factory overhead10

Fixed factory overhead28

Variable selling expenses20

Fixed selling expenses14

 

During the period, the company produced and sold 1,000 units.

 

49.Refer to Toshi Company. What is the inventory cost per unit using absorption costing?

a.$32

b.$70

c.$84

d.$104

 

 

 

50.Refer to Toshi Company. What is the inventory cost per unit using variable costing?

a.$42

b.$52

c.$62

d.$70

 

 

 

 

Ramon Company reported the following units of production and sales for June and July:

 

Units

MonthProducedSold

June100,00090,000

July100,000105,000

 

Net income under absorption costing for June was $40,000; net income under variable costing for July was $50,000. Fixed manufacturing costs were $600,000 for each month.

Mar 13 2020 View more View Less

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