Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations. $133 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: 7,000 6,800 200 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense 41 5 517 Fixed costs: $133,e88 34,e08 Fixed manufacturing overhead Fixed selling and administrative expense What is the total period cost for the month under absorption costing? Multiple Choice $133.000 $61,200 Corpenter Corporation uses the weignted-average metihod in its process costing system. This month the beginning invertory in the first processing department consisted or 1.400 units. Tne costs and percentage completion of these unns in beginning inventory were Percent Conplete Cost Matertals casts Conversion costs 55% A total of 9,000 units were siarted and 7,900 unts were transferred to the second processing departmem dumng the monch. The folowing costs were incurred in the firs: processing department during the montn Msterials costs Conversion costs $ 95,88 5178,600 The ending mentory wos 85% complete wen respect to moterins and 70% complete with respect to conversion costs. How many unns are in ending work in process inventory in the first processing department at the end of the month? Mukple Cholcs 2.500 7800 O 1300 100 Foggs Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable nanufacturing cost per unit praduced: Direct materials Direct labor variable fixed manufacturing overhead per year 5520,096 Selling and administrative expenses Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year 5 63,636 Year 1 Year 2 e 1,e03 1e,e00 13,009 9,60e 11, 1,608 3,869 Units in beginning iventory Units produced during the year Units sold during the yesir Units in ending inventory The unlt product cost under absorption costing In Year 2 is closest to Multipe Chaice ng inventory in tho r Inventory were Damingo Corparatian uses the woightod-avoraga mechod In procors costing Systom. This month, tho beginnin pracosing dopartmat canalatod of 500 units. The cost and percontagecompladion of these unis In baginning Percent Complete Cost Materiols cost Conversion costs 5 1,800 department during the A cotal or 6,900 urits were storted and 6,200 unis were tronsferred to the second processing momh. The following costs were incured in the firs processing month deportment durng the Materiols costs 120,500 The ending memory was 05% complete with respect to matenals and 75% complete with respect to conversion costs. How many units ere In ending work In process Inventory In the first processing depertment at the end of the manth Mutiple Cho ce O 6400

Answer 1

Ans. 1	Option 2nd $61,200
	Fixed selling and administrative expenses	$34,000
	Variable selling and administrative expenses (6,800 * $4)	$27,200
	Total   Period Cost	$61,200
Ans. 2	Option 1st 2,500
	Beginning inventory units	1400
	Add: Units stated	9000
	Less: Units transferred	-7900
	Ending inventory units	2500
Ans. 3	Option 3rd   $61 per unit
	In absorption costing method, the unit product cost is the sum of all manufacturing costs per unit
	whether it is fixed or variable.
	Unit product cost under Absorption Costing:
	Direct materials	$10.00
	Direct labor	$6.00
	Variable Overhead per unit	$5.00
	Fixed overhead per unit   ($520,000 / 13,000)	$40.00
	Unit product cost	$61.00
Ans. 4	Option 2nd 1,200
	Beginning inventory units	500
	Add: Units stated	6900
	Less: Units transferred	-6200
	Ending inventory units	1200