Question :
86. The level of inventory of a manufactured product has increased : 1226951
86. The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$24.00
$10.00
Unit operating expenses of the period
8.00
3.00
What would be the effect on income from operations if absorption costing is used rather than variable costing? A. $80,000 decreaseB. $80,000 increaseC. $104,000 increaseD. $104,000 decrease
87. The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$24.00
$10.00
Unit operating expenses of the period
8.00
3.00
What would be the effect on income from operations if variable costing is used rather than absorption costing? A. $50,000 decreaseB. $50,000 increaseC. $65,000 increaseD. $65,000 decrease
88. The level of inventory of a manufactured product has increased by 4,000 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$22.00
$11.00
Unit operating expenses of the period
7.00
5.00
What would be the effect on income from operations if absorption costing is used rather than variable costing? A. $44,000 decreaseB. $44,000 increaseC. $64,000 increaseD. $64,000 decrease
89. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (20,000 units):
Direct materials
$180,000
Direct labor
240,000
Variable factory overhead
280,000
Fixed factory overhead
100,000
$800,000
Operating expenses:
Variable operating expenses
$130,000
Fixed operating expenses
50,000
180,000
If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? A. $64,000B. $56,000C. $66,400D. $78,400
90. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units):
Direct materials
$ 80,000
Direct labor
120,000
Variable factory overhead
140,000
Fixed factory overhead
40,000
$380,000
Operating expenses:
Variable operating expenses
$ 65,000
Fixed operating expenses
25,000
90,000
If 1,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? A. $38,000B. $40,500C. $34,000D. $47,000
91. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (20,000 units):
Direct materials
$180,000
Direct labor
240,000
Variable factory overhead
280,000
Fixed factory overhead
100,000
$800,000
Operating expenses:
Variable operating expenses
$130,000
Fixed operating expenses
50,000
180,000
If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? A. $62,500B. $73,500C. $60,000D. $52,500
92. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units):
Direct materials
$ 80,000
Direct labor
120,000
Variable factory overhead
140,000
Fixed factory overhead
40,000
$380,000
Operating expenses:
Variable operating expenses
$ 65,000
Fixed operating expenses
25,000
90,000
If 600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? A. $24,300B. $28,200C. $22,800D. $34,000
93. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (2,500 units):
Direct materials
$42,500
Direct labor
85,000
Variable factory overhead
47,500
Fixed factory overhead
12,500
$187,500
Operating expenses:
Variable operating expenses
$15,000
Fixed operating expenses
4,500
19,500
If 75 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? A. $5,625B. $5,250C. $5,760D. $6,210
94. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units):
Direct materials
$170,000
Direct labor
360,000
Variable factory overhead
190,000
Fixed factory overhead
50,000
$770,000
Operating expenses:
Variable operating expenses
$ 60,000
Fixed operating expenses
18,000
78,000
If 500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? A. $41,500B. $36,000C. $42,800D. $38,500
95. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units):
Direct materials
$140,000
Direct labor
40,000
Variable factory overhead
20,000
Fixed factory overhead
4,000
$204,000
Operating expenses:
Variable operating expenses
$ 34,000
Fixed operating expenses
2,000
36,000
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? A. $100,800B. $100,000C. $114,800D. $140,000
