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

 

 

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