\[\begin{array} { l r } \text { Direct materials } & \$ 10,000 \\ \text { Direct labour } & 15,000 \\ \text { Variable factory overhead } & 5,000 \\ \text { Fixed factory overhead } & 20,000 \\ \text { Variable selling expense } & 7,200 \\ \text { Fixed selling expense } & 5,000 \\ \text { Fixed administrative expense } & 12,000 \end{array}\] -Refer to the Figure.Assume that beginning inventory was zero.What is the value of ending inventory under variable costing?

A) $2,000 B) $3,000 C) $3,720 D) $5,000 A) $2,000 B) $3,000 C) $3,720 D) $5,000

$\begin{array}{lrr}&\text { Units }\\\text { Month }&\text { Produced }&\text { Sold }\\ \text { June } & 100,000 & 90,000 \\ \text { July } & 100,000 & 105,000 \end{array}$ -Refer to the Figure.What is the June ending inventory for Theele Corporation when using the variable costing method?

A) $15,000 B) $116,000 C) $120,000 D) $260,000 A) $15,000 B) $116,000 C) $120,000 D) $260,000

Exam 8: Absorption and Variable Costing,and Inventory Management

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Direct materials \ 10,000 Direct labour 15,000 Variable factory overhead 5,000 Fixed factory overhead 20,000 Variable selling expense 7,200 Fixed selling expense 5,000 Fixed administrative expense 12,000 -Refer to the Figure.Assume that beginning inventory was zero.What is the value of ending inventory under variable costing?

(Multiple Choice)

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Question 81

What is the difference between absorption-costing income and variable-costing income?

(Essay)

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Question 82

Absorption costing income statements and variable costing income statements may differ because of their treatment of fixed overhead costs.

(True/False)

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Question 83

Units Month Produced Sold June 100,000 90,000 July 100,000 105,000 -Refer to the Figure.What is the June ending inventory for Theele Corporation when using the variable costing method?

(Multiple Choice)

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Question 84

Product cost includes all costs of the company.

(True/False)

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Question 85

Match each statement with the correct item below. -Ordering costs

(Multiple Choice)

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Question 86

Which of the following occurs under a JIT system?

(Multiple Choice)

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Question 87

If the number of units produced in a period is larger than the number of units sold in a period,absorption costing income will be higher than variable costing income.

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Question 88

Showing 81 - 88 of 88

What is the difference between absorption-costing income and variable-costing income?

Absorption costing income statements and variable costing income statements may differ because of their treatment of fixed overhead costs.

Units Month Produced Sold June 100,000 90,000 July 100,000 105,000 -Refer to the Figure.What is the June ending inventory for Theele Corporation when using the variable costing method?

Product cost includes all costs of the company.

Match each statement with the correct item below. -Ordering costs

Which of the following occurs under a JIT system?

If the number of units produced in a period is larger than the number of units sold in a period,absorption costing income will be higher than variable costing income.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

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