The level of inventory of a manufactured product has increased by 7,780 units during a period. The following data are also available:Fixed$4.001.00VariableUnit manufacturing costs of the periodUnit operating expenses of the periodThe effect on operating income if absorption costing is used rather than variable costing would be aOa.a. $31,120 decreaseOb. $38,900 increaseOc. $38,900 decreased. $31,120 increase$13.002.00

Cost accounting is one of the special branch of accounting, under which various costs are being…

Answered: The level of inventory of a…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
The level of inventory of a manufactured product has increased by 7,147 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $10.00 $7.00 Unit operating expenses of the period 2.00 3.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $50,029 increase Ob. $50,029 decrease. Oc. $71,470 decrease Od. $71,470 increase
The level of inventory of a manufactured product has increased by 7,871 units during a period. The following data are also available: Variable Fixed $12.00 $7.00 1.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if variable costing is used rather than absorption costing would be a(n) a. $55,097 increase Ob. $55,097 decrease Oc. $86,581 increase Od. $86,581 decrease
The level of inventory of a manufactured product has increased by 9,022 units during a period. The following data are also available: Line Item Description Variable Fixed Unit manufacturing costs of the period $14.00 $5.00 Unit operating expenses of the period 4.00 3.00 The effect on operating income if absorption costing is used rather than variable costing would be a a. $72,176 increase b. $45,110 decrease c. $45,110 increase d. $72,176 decrease
The level of inventory of a manufactured product has increased by 8,413 units during a period. The following data are also available: Varlable Fixed Unit manufacturing costs of the period $11.00 $6.00 Unit operating expenses of the period 1.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $50,478 increase Ob. s50,478 decrease Oc. s84,130 decrease Od. S84,130 increase Pre Submit Tes
The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00
The level of inventory of a manufactured product has increased by 7,848 units during a period. The following data are also available Variable Fixed Unit manufacturing costs of the period $11.00 $3.00 Unit operating expenses of the period 2.00 5.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $23,544 increase Ob. $62,784 decrease Oc. $62,784 increase Od. $23,544 decrease
The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $24.00 $10.00 8.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a a. $65,000 decrease O b. $50,000 decrease Oc. $50,000 increase O d. $65.000 increase
The level of inventory of a manufactured product has increased by 7,819 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $13.00 $8.00 Unit operating expenses of the period 1.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$86,009 increase b.$86,009 decrease c.$62,552 decrease d.$62,552 increase
The level of inventory of a manufactured product has increased by 7,675 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if absorption costing is used rather than variable costing would be a a.$61,400 decrease b.$61,400 increase c.$76,750 decrease d.$76,750 increase
The level of inventory of a manufactured product has increased by 7,809 units during a period. The following data are also available:Variable FixedUnit manufacturing costs of the period $14.00 $8.00 Unit operating expenses of the period 2.00 2.00 The effect on operating income if absorption costing is used rather than variable costing would be a. $62,472 increase b. $78,090 increase c. $78,090 decrease d. $62,472 decrease

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