Question :
86.Leesburg Bags produces backpacks. The costs and prices for the : 1302751
86.Leesburg Bags produces backpacks. The costs and prices for the backpacks follow (Assume the same unit costs in all years):
Selling price$23.00 per backpack
Variable costs:
Production$11.00 per backpack
Selling$2.00 per backpack
Fixed costs:
Production$900,000 per year
Selling and administrative$540,000 per year
Leesburg Bags produced 250,000 backpacks for the year and sold 200,000. There was no beginning inventory, and costs throughout the year were stable. What would be the difference in income between variable costing income and full costing income if the company had produced 215,000 backpacks instead of 250,000?
A.$62,791
B.$54,000
C.$46,400
D.$77,400
87.WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years):
Variable costs:
Product royalty fees$3.30 per DVD
DVD production$1.20 per DVD
Selling and admin costs$0.80 per DVD
Fixed costs:
Production$128,000 per month
Selling and administration$130,000 per month
During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is net income per month under variable costing?
A.$143,600
B.$130,800
C.$130,640
D. None of these answer choices are correct.
88.WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years):
Variable costs:
Product royalty fees$3.30 per DVD
DVD production$1.20 per DVD
Selling and admin costs$0.80 per DVD
Fixed Costs:
Production$128,000 per month
Selling and administration$130,000 per month
During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is net income per month under full costing?
A.$143,600
B.$130,640
C.$130,800
D. None of these answer choices are correct.
89.WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years):
Variable costs:
Product royalty fees$3.30 per DVD
DVD production$1.20 per DVD
Selling and admin costs$0.80 per DVD
Fixed Costs:
Production$128,000 per month
Selling and administration$130,000 per month
During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is inventory at the end of the month under variable costing?
A.$72,000
B.$148,500
C.$174,900
D.$84,800
90.WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years):
Variable costs:
Product royalty fees$3.30 per DVD
DVD production$1.20 per DVD
Selling and admin costs$0.80 per DVD
Fixed Costs:
Production$128,000 per month
Selling and administration$130,000 per month
During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is inventory at the end of the month under full costing?
A.$72,000
B.$148,500
C.$174,900
D.$84,800
91.Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:
Selling price$15.00 per t-shirt
Variable costs:
Production (manufacturing costs)$3.00 per t-shirt
Selling & administration$1.00 per t-shirt
Fixed costs:
Production (manufacturing costs)$1,000,000 per year
Selling & administration$2,000,000 per year
During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?
A.$975,000
B.$1,400,000
C.$850,000
D.$2,250,000
92.Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:
Selling price$15.00 per t-shirt
Variable costs:
Production (manufacturing costs)$3.00 per t-shirt
Selling & administration$1.00 per t-shirt
Fixed costs:
Production (manufacturing costs)$1,000,000 per year
Selling & administration$2,000,000 per year
During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under full costing?
A.$975,000
B.$1,400,000
C.$850,000
D.$2,250,000
93.Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:
Selling price$15.00 per t-shirt
Variable costs:
Production (manufacturing costs)$3.00 per t-shirt
Selling & administration$1.00 per t-shirt
Fixed costs:
Production (manufacturing costs)$1,000,000 per year
Selling & administration$2,000,000 per year
During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the inventory under variable costing at December 31, 2014?
A.$150,000
B.$275,000
C.$200,000
D.$325,000
94.Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:
Selling price$15.00 per t-shirt
Variable costs:
Production (manufacturing costs)$3.00 per t-shirt
Selling & administration$1.00 per t-shirt
Fixed costs:
Production (manufacturing costs)$1,000,000 per year
Selling & administration$2,000,000 per year
During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the inventory under full costing at December 31, 2014?
A.$150,000
B.$275,000
C.$200,000
D.$325,000
95. Brislin Gifts makes ceramic mugs and has the following amounts for 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 44,000 46,000
Inventory at January 1, 2014 consisted of 1,000 mugs. How much is net income for January using variable costing?
A.$89,600
B.$77,600
C.$67,480
D. None of these answer choices are correct.
