In: Accounting
Understand you can only answer 1 question, but if you are able to answer them all I will guarantee a thumbs up.
Variable production cost per unit $8
Variable S and A cost per unit $2
Fixed overhead cost $150,000
Fixed selling and admin, cost $200,000
Units produced $50,000
Units sold $48,000
Using full costing, the cost per unit is
A. $8
B. $11
C. $12
D. $9.05
Using variable costing, the cost of the ending inventory is:
A. $40,000
b. $22,000
C. $16,000
D. $24,000
Using variable costing, the contribution margin is
A. $576,000
B. 432,000
C. $336,000
d. $480,000
Using full costing, the gross margin is
A. $576,000
B. 432,000
C.336,000
D. $480,000
Total period costs under variable costing are
A. $350,000
B. $296,000
C.$446,000
D.$200,000
1 | ||
Variable production cost per unit | 8 | |
Fixed overhead cost per unit | 3 | =150000/50000 |
Cost per unit | 11 | |
Option B $11 is correct | ||
2 | ||
Units in ending inventory | 2000 | =50000-48000 |
X Variable production cost per unit | 8 | |
Che cost of the ending inventory | 16000 | |
Option C $16,000 is correct | ||
3 | ||
Total sales | 960000 | =48000*20 |
Less: Total variable costs | 480000 | =48000*(8+2) |
Contribution margin | 480000 | |
Option D $480,000 is correct | ||
4 | ||
Total sales | 960000 | =48000*20 |
Less: Cost of goods sold | 528000 | =48000*11 |
Gross margin | 432000 | |
Option B $432,000 is correct | ||
5 | ||
Fixed overhead cost | 150000 | |
Variable S and A cost per unit | 200000 | |
Fixed selling and admin, cost | 96000 | =48000*2 |
Total period costs under variable costing | 446000 | |
Option C $446,000 is correct |