Question : 56.If the number of units sold greater than the number : 1302748

 

 

56.If the number of units sold is greater than the number of units produced,

A.full costing and variable costing will yield the same net income.

B.variable costing will assign some fixed manufacturing costs to the units in ending inventory.

C.net income will be higher under variable costing than under full costing.

D.inventory levels will increase.

57.Meow Foods had 2,000 25-pound bags of cat food in beginning inventory. During 2014, the company manufactured 16,000 bags and sold 15,000 units. Assume the same unit costs in all years. Each bag of food is sold for $17. The company experienced the following costs:

 

Direct materials$4.50 per unit

Direct labor$2.10 per unit

Variable manufacturing overhead$1.90 per unit

Variable selling$1.00 per unit

Fixed manufacturing overhead$48,000

Fixed selling$24,000

Fixed administrative$30,000

 

If the company uses full costing, how much will be reported as inventory on the December 31, 2014 balance sheet?

A.$9,000

B.$25,500

C.$28,500

D.$34,500

 

58.Meow Foods had 2,000 25-pound bags of cat food in beginning inventory. During 2014, the company manufactured 16,000 bags and sold 15,000 units. Each bag of food is sold for $17. Assume the same unit costs in all years. The company experienced the following costs:

 

Direct materials$4.50 per unit

Direct labor$2.10 per unit

Variable manufacturing overhead$1.90 per unit

Variable selling$1.00 per unit

Fixed manufacturing overhead$48,000

Fixed selling$24,000

Fixed administrative$30,000

 

If the company uses variable costing, at what amount is the ending inventory for the year valued?

A.$25,500

B.$28,500

C.$34,500

D.$9,000

 

59.Macho Enterprises experienced the following costs in 2014:

 

Direct materials$2.65 per unit

Direct labor$1.80 per unit

Variable manufacturing overhead$3.25 per unit

Variable selling$1.15 per unit

Fixed manufacturing overhead$94,000

Fixed selling$35,000

Fixed administrative$10,000

 

During the year, the company manufactured 47,000 units and sold 40,000 units. How much is the unit product cost using full costing?

A.$7.70

B.$9.70

C.$8.85

D.$10.85

 

60.Ranger Roadsters experienced the following costs in 2014 (Assume the same unit costs in all years):

 

Direct materials$4.85 per unit

Direct labor$2.10 per unit

Manufacturing overhead costs

Variable$2.25 per unit

Fixed$75,075

Selling & administrative costs

Variable selling$0.95 per unit

Fixed selling$8,000

Fixed administrative$2,000

 

There were 6,000 units in beginning inventory. During the year, the company manufactured 45,500 units and sold 48,000 units. If net income using variable costing was $82,500, how much is net income using full costing?

A.$78,375

B.$86,625

C.$76,725

D.$88,275

 

61.The Crab Shack experienced the following costs in 2014 (Assume the same unit costs in all years):

Direct materials$2.25 per unit

Direct labor$1.50 per unit

Manufacturing overhead costs

Variable$1.10 per unit

Fixed$60,000

Selling & administrative costs

Variable selling$0.80 per unit

Fixed selling$9,000

Fixed administrative$13,000

 

There were 1,800 units in beginning inventory. During the year, the company manufactured 24,000 units and sold 25,000 units. If net income using variable costing was $76,250, how much is net income using full costing?

A.$5,880

B.$79,250

C.$73,750

D.$74,350

 

62.If a company’s levels of total fixed costs and unit variable costs remain unchanged from one year to the next, under which costing method is it possible for managers to manipulate net income through production?

A.Variable costing

B.Full costing

C.Both variable and full costing

D.Neither variable nor full costing

 

63.Full costing income is a function of

A.units sold only.

B.units produced only.

C.both units sold and units produced.

D.neither units sold nor units produced.

64.Which of the following is true when units produced exceed units sold?

A.Full costing and variable costing will yield the same net income.

B.Full costing assigns a portion of the fixed manufacturing costs to the units in ending inventory.

C.Net income will be higher under variable costing than under full costing.

D.Inventory levels will decrease.

 

65.Futon Delight experienced the following costs in 2014 (Assume the same unit costs in all years):

 

Direct materials$2.00 per unit

Direct labor$1.00 per unit

Manufacturing Overhead Costs:

Variable$1.50 per unit

Fixed$45,000

 

There were 600 units in beginning inventory. During the year, the company manufactured 18,000 units and sold 17,600 units. If net income for the year was $54,000 using full costing, how much will net income be if the company uses variable costing?

A.$53,000

B.$50,000

C.$55,000

D.More information is needed to determine the answer.