Question : 96.Brislin Gifts makes ceramic mugs and has the following amounts : 1302752

 

 

96.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per month

Fixed selling and administrative cost $60,000 per month

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. How much is net income for February using full costing?

A.$70,500

B.$83,000

C.$183,000

D. None of these answer choices are correct.

 

97.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per month

Fixed selling and administrative cost$60,000 per month

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. During which months will ending inventory be the same if variable costing is used?

A.January and February

B.February and March

C.January and March

D.No two months would have the same ending inventory

 

98.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per month

Fixed selling and administrative cost$60,000 per month

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. Which two months would have the same net income under full costing?

A.January and February

B.February and March

C.January and March

D.No two months would have the same net income.

 

99.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per year

Fixed selling and administrative cost$60,000 per year

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. How many units will remain in inventory at the end of February?

A.2,000

B.0

C.7,000

D.6,000

 

100.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per year

Fixed selling and administrative cost$60,000 per year

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. How much is the inventory cost per unit under full costing during March?

A.$4.50

B.$4.00

C.$2.50

D.$5.10

 

101.Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years):

 

Selling price$9.00 per mug

Variable production cost$2.50 per mug

Variable selling cost$1.10 per mug

Fixed production cost$100,000 per year

Fixed selling and administrative cost$60,000 per year

 

Production and sales in units for the first three months of 2014 are as follows:

YearProductionSales

January              50,000              44,000

February              40,000              45,000

March              50,000              45,000

 

Inventory at January 1, 2014 consisted of 1,000 mugs. How much is the inventory cost per unit under variable costing during March?

A.$4.50

B.$3.60

C.$2.50

D.$5.60

 

102.A company with fixed manufacturing costs of $500,000 produces 100,000 units in 2014 and 125,000 units in 2015. The company sells 90,000 units each in both years. Other costs and selling price are unchanged for 2014 and 2015. Assume that there was no beginning inventory in 2014. Which of the following is true?

A.Variable costing income will be greater in 2014 than in 2015.

B.The dollar amount of ending inventory will be greater in 2014 than in 2015.

C.Variable costing income will be the same in 2015 and 2014.

D.All of these answer choices are correct.

 

103.Zintec has fixed manufacturing costs of $400,000 and produces 10,000 and sells 8,000 wagons during the year. There is no beginning inventory. Which of the following conclusions can be drawn?

A.Variable costing income will be $80,000 higher than full costing income.

B.Full costing income will be $80,000 higher than variable costing income.

C.Variable and full costing income will be the same.

D.There is not enough information to draw a conclusion.

 

104.Boulder Blowers produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

 

Direct material per unit              $         20

Direct labor per unit              12

Variable manufacturing overhead per unit              10

Fixed manufacturing overhead per year              148,500

 

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers. There was no beginning inventory. What is the value of ending inventory using full costing?

A.$679,500

B.$630,000

C.$652,500

D.$780,000

105.Boulder Blowers produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

 

Direct material per unit              $         20

Direct labor per unit              12

Variable manufacturing overhead per unit              10

Fixed manufacturing overhead per year              148,500

 

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers. There was no beginning inventory. What is the value of ending inventory using variable costing?

A.$679,500

B.$630,000

C.$652,500

D.$780,000

 

106.Boulder Blowers produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

 

Direct material per unit                $         20

Direct labor per unit              12

Variable manufacturing overhead per unit              10

Fixed manufacturing overhead per year              148,500

 

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers. There was no beginning inventory. How much is the cost of goods sold using full costing?

A.$1,359,000

B.$1,260,000

C.$2,038,500

D.$1,408,500

 

107.Boulder Blowers produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

 

Direct material per unit              $         20

Direct labor per unit              12

Variable manufacturing overhead per unit              10

Fixed manufacturing overhead per year              148,500

 

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers. There was no beginning inventory. How much is net income using full costing?

A.$1,641,000

B.$1,590,000

C.$1,441,500

D.$1,491,000

 

108.Boulder Blowers produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

 

Direct material per unit              $          20

Direct labor per unit              12

Variable manufacturing overhead per unit              10

Fixed manufacturing overhead per year              148,500

 

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers. Beginning inventory consists of no units. How much fixed manufacturing overhead is in ending inventory under full costing?

A.$0

B.$49,500

C.$148,500

D.$99,000

 

109.The following information relates to Winslee Widgets during the company’s first year of operations:

 

Units produced              11,000

Units sold              10,000

Units in ending inventory              1,000

Fixed manufacturing overhead              $220,000

 

How much fixed manufacturing overhead will be expensed during the year using full costing?

A.$220,000

B.$20,000

C.$200,000

D.$0