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1.
Lenart Corporation has provided the following data for its two most recent years of operation:
| | | |
| Manufacturing costs: | | |
| Variable manufacturing cost per unit produced: | | |
| Direct materials | $ | 13 |
| Direct labor | $ | 6 |
| Variable manufacturing overhead | $ | 4 |
| Fixed manufacturing overhead per year | $ | 70,000 |
| Selling and administrative expenses: | | |
| Variable selling and administrative expense per unit sold | $ | 6 |
| Fixed selling and administrative expense per year | $ | 83,000 |
| |
| | Year 1 | Year 2 |
| Units in beginning inventory | 0 | 1,000 |
| Units produced during the year | 10,000 | 7,000 |
| Units sold during the year | 9,000 | 6,000 |
| Units in ending inventory | 1,000 | 2,000 |
| |
The unit product cost under absorption costing in Year 2 is closest to:
2.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
| | | |
| Selling price | $ | 117 |
| Units in beginning inventory | | 0 |
| Units produced | | 2,900 |
| Units sold | | 2,500 |
| Units in ending inventory | | 400 |
| Variable costs per unit: | | |
| Direct materials | $ | 32 |
| Direct labor | $ | 45 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative expense | $ | 9 |
| Fixed costs: | | |
| Fixed manufacturing overhead | $ | 43,500 |
| Fixed selling and administrative expense | $ | 15,000 |
| |
The total gross margin for the month under absorption costing is:
3.
Bryans Corporation has provided the following data for its two most recent years of operation:
| | | |
| Selling price per unit | $ | 53 |
| Manufacturing costs: | | |
| Variable manufacturing cost per unit produced: | | |
| Direct materials | $ | 13 |
| Direct labor | $ | 6 |
| Variable manufacturing overhead | $ | 5 |
| Fixed manufacturing overhead per year | $ | 63,000 |
| Selling and administrative expenses: | | |
| Variable selling and administrative expense per unit sold | $ | 4 |
| Fixed selling and administrative expense per year | $ | 71,000 |
| |
| | Year 1 | | Year 2 |
| Units in beginning inventory | 0 | | 3,000 |
| Units produced during the year | 9,000 | | 7,000 |
| Units sold during the year | 6,000 | | 7,000 |
| Units in ending inventory | 3,000 | | 3,000 |
| |
The unit product cost under absorption costing in Year 1 is closest to:
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