管理会计作业：Absorption

1、Chapter 6: Absorption and Variable Costing6.1-1 When a company produces more units than it sells, absorption costing income will exceed variable costing income. Answer: True6.1-2 The absorption costing approach considers fixed manufacturing costs to be product costs. Answer: True 6.1-3The absorption

2、 costing approach considers fixed marketing costs to be product costs. Answer: False 6.1-4If a companys beginning inventory is zero and everything is sold in the month it is produced, variable and absorption costing will always yield the same result. Answer: True 6.1-5A company sold everything it pr

3、oduced in the month; therefore, variable and absorption costing will always yield the same result. Answer: False 6.1-6A companys beginning and ending inventory count is the same. Therefore, the ending inventory amount on the balance sheet must be the same amount as the beginning inventory amount.Ans

4、wer: False 6.1-7If a companys beginning and ending inventory count is the same and production cost per unit are the same; then, the ending inventory amount on the balance sheet must be the same dollar amount as the beginning inventory dollar amount.Answer: True6.1-8If a companys beginning and ending

5、 inventory count is the same and production cost per unit are the same; then, the cost of goods sold must be the same dollar amount whether using variable or absorption costingAnswer: False 6.1-9GAAP requires that we assign fixed and variable manufacturing costs to the product. Answer: True 6.1-10If

6、 production exceeds units sold, which of the following statements is correct? A) The same operating income will result under both a variable costing and absorption costing income statement. B) A higher operating income will result under a variable costing income statement. C) A lower operating incom

7、e will result under an absorption costing income statement. D) A higher operating income will result under an absorption costing income statement. Answer: DDifficulty: 2 6.1-11An increase in inventory will cause which of the following when comparing operating income under absorption and variable cos

8、ting? A) The same operating income under both variable costing and absorption costing B) A higher operating income under variable costing C) A lower operating income under variable costing D) A lower cost of goods sold and a higher operating income under absorption costing Answer: C6.1-12A decrease

9、in inventory will cause which of the following when comparing operating income under absorption and variable costing? A) The same operating income under both variable costing and absorption costing B) A higher operating income under variable costing C) A lower operating income under variable costing

10、 D) A lower cost of goods sold and a higher operating income under absorption costing Answer: B6.2-1Variable costing considers all costs to be product costs.Answer: False 6.2-2 Absorption costing net income can be manipulated by management through inventory levels. Answer: True6.2-3Assuming no begin

11、ning inventory, if production is greater than sales, operating income is higher under absorption costing than under variable costing.Answer: True6.2-4Assuming no beginning inventory, if production is greater than sales, ending inventory is higher under absorption costing than under variable costing.

12、Answer: True6.2-5Assuming no beginning inventory and monthly production is greater than sales. Management who are paid a bonus based on operating income would receive a larger bonus under variable costing, because only the variable costs will be deducted in deriving operating income.Answer: False6.2

13、-6Commissions paid to sales persons are considered a variable product cost under variable costing.Answer: False 6.2-7Direct materials and direct labor are always considered product costs under both variable and absorption costing.Answer: True6.2-8Straight-line depreciation on the manufacturing equip

14、ment would be considered a product cost under both variable and absorption costing.Answer: False 6.2-9Selling and administrative expenses (such as commissions paid to sales personnel) are considered part of product costs under variable costing. Answer: False6.2-10Seattle Enterprises produces package

15、d fresh meals which it sells for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs w

16、ere $1,200. What is the product cost per meal under absorption and under variable costing? A) $6.00 under absorption costing and $6.00 under variable costing B) $6.50 under absorption costing and $6.00 under variable costing C) $7.50 under absorption costing and $7.00 under variable costing D) $6.00

17、 under absorption costing and $7.00 under variable costing Answer: B6.2-11Seattle Enterprises produces packaged fresh meals that sell for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal

18、were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Gross profit under absorption costing would be:A) $10,800. B) $9,450.C) $8,250.D) $5,550. Answer: B6.2-12Seattle Enterprises produces packaged fresh meals that sell for $10 each. Duri

19、ng the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Net income under absorption costing

20、 would be:A) $10,800. B) $9,450.C) $5,550.D) $5,500. Answer: C6.2-13Seattle Enterprises produces packaged fresh meals which it sells for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal w

21、ere $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Contribution margin profit under variable costing would be:A) $10,800. B) $9,450.C) $8,250.D) $5,550. Answer: A6.2-14Seattle Enterprises produces packaged fresh meals which it sells fo

22、r $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Net income under va

23、riable costing would be:A) $10,800. B) $9,450.C) $5,550.D) $5,500. Answer: D6.2-15During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. An absorption costing income statement would report the fixed manufacturing cost

24、s as a: A) $40,000 deduction from sales revenue to obtain contribution margin. B) $40,000 deduction from sales revenue to obtain operating income. C) $34,000 deduction from gross profit to obtain operating income. D) $34,000 deduction from sales revenue to obtain gross profit. Answer: D 6.2-16During

25、 the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs totaled $100,000, what is the cost per unit using variable costing? A) $2.00B) $5.00C) $7.00D) $7.35Answer: B Difficulty: 2LO: 6-2EOC Ref:

26、P6-18AAACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting 6.2-17During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable pro

27、duction costs totaled $100,000, what is the cost per unit using absorption costing? A) $2.00B) $5.00C) $7.00D) $7.35Answer: C Difficulty: 26.2-18During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. A variable costin

28、g income statement would report the fixed manufacturing costs as a: A) $40,000 deduction from sales revenue to obtain contribution margin. B) $40,000 deduction from sales revenue to obtain gross profit. C) $34,000 deduction from gross profit to obtain operating income. D) $34,000 deduction from sale

29、s revenue to obtain gross profit. Answer: B 6.2-19During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs were $100,000, a variable costing income statement would report the variable manufa

30、cturing costs as a: A) $85,000 deduction from sales revenue to obtain contribution margin. B) $85,000 deduction from sales revenue to obtain gross profit. C) $100,000 deduction from sales revenue to obtain contribution margin. D) $100,000 deduction from sales revenue to obtain gross profit. Answer:

31、A 6.2-20During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs were $100,000, an absorption costing income statement would report the variable manufacturing costs as a: A) part of cost of

32、goods sold. B) $85,000 deduction from sales revenue to obtain contribution margin. C) $100,000 deduction from sales revenue to obtain contribution margin. D) $100,000 deduction from sales revenue to obtain gross profit. Answer: A 6.2-21Pats Hats produces sun visors. Production data for the first mon

33、th follow:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable manufacturing overhead cost per unit $ 0.25 Total fixed manufacturing overhead costs $10,000 Total fixed selling and administrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,6

34、00 Sale price per unit $ 10 What is the absorption cost per hat for October? A)$2.25 B) $2.50 C) $3.00 D) $5.00 Answer: C 6.2-22Pats Hats produces sun visors. Production data for the first month follow:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable manufactur

35、ing overhead cost per unit $ 0.25 Total fixed manufacturing overhead costs $10,000 Total fixed selling and administrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,600 Sale price per unit $ 10 What is the variable cost per hat for October? A)$2.25 B) $2.50 C) $3.00 D) $5.0

36、0 Answer: B 6.2-23Pats Hats produces sun visors. Production data for the first month follow:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable manufacturing overhead cost per unit $ 0.25 Total fixed manufacturing overhead costs $10,000 Total fixed selling and adm

37、inistrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,600 Sale price per unit $ 10 What is the October net income using absorption costing? A) $97,000 B) $97,200C) $137,200 D) $137,000 Answer: B 6.2-24Pats Hats produces sun visors. Production data for the first month follo

38、w:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable manufacturing overhead cost per unit $ 0.25 Total fixed manufacturing overhead costs $10,000 Total fixed selling and administrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,600 Sale

39、price per unit $ 10 What is the October net income using variable costing? A) $97,000 B) $97,200C) $137,200 D) $137,000 Answer: B 6.2-25Pats Hats produces sun visors. Production data for the first month follow:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable ma

40、nufacturing overhead cost per unit $ 0.25 Total fixed manufacturing overhead costs $10,000 Total fixed selling and administrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,600 Sale price per unit $ 10 What is the value of the October ending inventory using absorption costi

41、ng? A) $1,200 B) $1,000C) $200 D) $400 Answer: A 6.2-26Pats Hats produces sun visors. Production data for the first month follow:OctoberDirect materials cost per unit $ 0.75 Direct labor cost per unit $ 1.50 Variable manufacturing overhead cost per unit $ 0.25 Total fixed manufacturing overhead cost

42、s $10,000 Total fixed selling and administrative costs $40,000 Number of units produced 20,000 Number of unit sold 19,600 Sale price per unit $ 10 What is the value of the October ending inventory using variable costing? A) $1,200 B) $1,000C) $200 D) $400 Answer: B 6.2-27Robertas Hot Stuff began mak

43、ing hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory

44、was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the total absorption cost per hot and sour soup package.A) $0.70 B) $0.72 C) $0.80 D) $0.82 Answer: C 6.2-28Robertas Hot Stuff

45、 began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending

46、inventory was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the total variable cost per hot and sour soup package.A) $0.70 B) $0.72 C) $0.80 D) $0.82 Answer: A 6.2-29Robertas H

47、ot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012

48、 ending inventory was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the September net income using absorption costing.A) $479,800 B) $479,200 C) $487,200 D) $527,800 Answer: B

49、6.2-30Robertas Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On

50、 August 31, 2012 ending inventory was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the September net income using variable costing.A) $479,800 B) $479,200 C) $487,200 D) $527,

51、800 Answer: A 6.2-31Robertas Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost

52、 of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the September ending inventory value using absorption costing.A) $2,800 B) $3,

53、200 C) $4,800 D) NoneRobertas sold more soup than they made. Answer: B 6.2-32Robertas Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Robertas Hot Stuff incurs monthly fixed manufacturing overhead c

54、osts of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Robertas Hot Stuff produced 400,000 soup packages in September. Robertas Hot Stuff sold 406,000 of the soup packages in September. Calculate the September ending inventory value using variable costing.A) $2,800 B) $3,200 C) $4,800 D) NoneRobertas sold more soup than they made. 6.2-33Burrito-Blast