Assignment
Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$119
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
6,550
|
|
Units sold
|
6,250
|
|
Units in ending inventory
|
300
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$17
|
|
Direct labor
|
$47
|
|
Variable manufacturing overhead
|
$11
|
|
Variable selling and administrative
|
$11
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$176,850
|
|
Fixed selling and administrative
|
$25,500
|
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the unit product cost for the month under absorption costing?
$102 per unit
$75 per unit
$86 per unit
$113 per unit
2. Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$143
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
6,850
|
|
Units sold
|
6,550
|
|
Units in ending inventory
|
300
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$23
|
|
Direct labor
|
$53
|
|
Variable manufacturing overhead
|
$17
|
|
Variable selling and administrative
|
$17
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$184,950
|
|
Fixed selling and administrative
|
$27,300
|
What is the unit product cost for the month under variable costing?
$110 per units
$137 per units
$120 per units
$93 per units
3. The WRT Corporation makes collections on sales according to the following schedule:
40% in month of sale
56% in month following sale
4% in second month following sale
The following sales have been are expected:
| |
Expected Sales
|
|
April
|
$150,000
|
|
May
|
$170,000
|
|
June
|
$160,000
|
Budgeted cash collections in June should be budgeted to be:
$159,200
$160,000
$160,600
$165,200.