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What was the net income for July using absorption costing

What was the net income for July using absorption costing?

a.$20,000

b.$40,000

c.$50,000

d.$80,000

 

 

 

52.Refer to Ramon Company. What was the net income for June using variable costing?

a.($40,000)

b.($20,000)

c.$20,000

d.$40,000

 

 

 

 

Steele Corporation has the following information for January, February, and March:

 

JanuaryFebruaryMarch

Units produced10,00010,00010,000

Units sold7,0008,50010,500

 

Production costs per unit (based on 10,000 units) are as follows:

 

Direct materials$12

Direct labour8

Variable factory overhead6

Fixed factory overhead4

Variable selling and administrative expenses10

Fixed selling and administrative expenses4

 

Steele Corporation had no beginning inventories for January, and all units were sold for $50 per unit. Costs are stable over the three months.

 

53.Refer to Steele Corporation. What is the February ending inventory for Steele Corporation when using the absorption costing method?

a.$39,000

b.$45,000

c.$135,000

d.$300,000

 

 

 

54.Refer to Steele Corporation. What is the January ending inventory for Steele Corporation when using the variable costing method?

a.$78,000

b.$90,000

c.$108,000

d.$260,000

 

 

 

55.Refer to Steele Corporation. What is the March ending inventory for Steele Corporation when using the variable costing method?

a.$15,000

b.$104,000

c.$120,000

d.$260,000

 

 

 

56.Refer to Steele Corporation. What is the February contribution margin for Steele Corporation when using the variable costing method?

a.$119,000

b.$170,000

c.$204,000

d.$240,000

 

 

 

The following information pertains to Stark Corporation:

 

Beginning inventory0 units

Ending inventory5,000 units

Direct labour per unit$20

Direct materials per unit16

Variable overhead per unit4

Fixed overhead per unit10

Variable selling costs per unit12

Fixed selling costs per unit16

 

 

57.Refer to Stark Corporation. What is the value of ending inventory when using the absorption-costing method?

a.$200,000

b.$250,000

c.$310,000

d.$390,000

 

 

 

58.Refer to Stark Corporation. What is the value of ending inventory when using the variable costing method?

a.$200,000

b.$250,000

c.$310,000

d.$390,000

 

 

 

59.Refer to Stark Corporation. What is the relationship between absorption-costing net income and variable-costing net income?

a.Absorption-costing net income is $50,000 less.

b.Absorption-costing net income is $70,000 less.

c.Absorption-costing net income is $50,000 greater.

d.Absorption-costing net income is $70,000 greater.

 

 

 

Nauman Company has the following information pertaining to its two divisions for 2011:

 

Division XDivision Y

Variable selling and administrative expenses$  70,000$  90,000

Direct fixed manufacturing expenses35,000100,000

Sales200,000400,000

Direct fixed selling and administrative expenses30,00070,000

Variable manufacturing expenses40,000100,000

 

Common expenses are $24,000 for 2011.

 

60.Refer to Nauman Company. What is the segment margin for Division Y?

a.$40,000

b.$210,000

c.$240,000

d.$310,000

 

 

 

 

61.Refer to Nauman Company. What is the net income for Nauman Company?

a.$41,000

b.$65,000

c.$300,000

d.$325,000

 

 

 

 

Barmore Company has the following information pertaining to its two divisions for 2010:

 

Division ADivision B

Variable selling and administrative expenses$  35,000$  45,000

Direct fixed manufacturing expenses17,50050,000

Sales100,000200,000

Direct fixed selling and administrative expenses15,00035,000

Variable manufacturing expenses20,00050,000

 

Common expenses are $12,000 for 2010.

 

62.Refer to Barmore Company. What is the segment margin for Division B?

a.$20,000

b.$55,000

c.$105,000

d.$155,000

 

 

 

63.Refer to Barmore Company. What is the net income for Barmore Company?

a.$20,500

b.$32,500

c.$150,000

d.$300,000

 

 

 

 

Assume the following information for a product line:

 

Sales$500,000

Variable manufacturing expenses100,000

Direct fixed manufacturing expenses75,000

Variable selling and administrative expenses50,000

Direct fixed selling and admin. expenses60,000

 

 

64.Refer to product line. What is the contribution margin of the product line?

a.$215,000

b.$325,000

c.$350,000

d.$400,000

 

 

 

65.Refer to product line. What is the segment margin of the product line?

a.$215,000

b.$325,000

c.$350,000

d.$400,000

 

Mar 13 2020 View more View Less

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