During January, DAC Inc. produced 5,000 units of product with costs as follows:   Direct materials $40,000 Direct labour 22,000 Variable overhead 10,000 Fixed overhead  90,000        $162,000 At the end of January, there were 1,000 units of the product left in closing inventory.  What is the value of closing inventory under variable costing?

7

Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1. Costs and expenses for July were as follows: Total Num   Total Cost Number of Units Unit Cost Manufacturing costs:        Variable $660,000   30,000  $22.00  Fixed 300,000  30,000 10.00 Total 960,000     Selling and administrative expenses:       Variable $200,000     Fixed  160,000     Total. $360,000     If the company sells 25,000 units at $75 (units manufactured exceed units sold), prepare an income statement for July using: b. Variable costing

6,7&8

At the end of the first year of operations, 5,600 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $29.10   Direct labor 13.20   Fixed factory overhead 4.80   Variable factory overhead 4.20   Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing $

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $174,500 232,600 249,000 104,200 $760,300 $134,700 43,300 Fixed operating expenses 178,000 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $67,318 O b. $70,019 O c. $58,089 O d. $83,079

The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units Units produced 1,400 100,000 Units sold 101,000 Variable costs per unit: Direct materials $8.00 Direct labor $9.00 Variable overhead $1.00 Variable selling expenses $2.00 Fixed costs per year: Fixed overhead $300,000 Fixed selling and administrative expenses $230,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is $32. Prepare an income statement using (a) variable costing and (b) absorption costing.

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,700 units): Direct materials $179,300 Direct labor 234,800 Variable factory overhead 268,300 Fixed factory overhead 103,400 $785,800 Operating expenses: Variable operating expenses $124,300 Fixed operating expenses 48,100 172,400 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is Oa. $72,124 Ob. $74,045 Oc. $87,951 Od. $62,636