Intro To SCM Cost Concepts Variable Costing Quiz
Intro To SCM Cost Concepts Variable Costing Quiz
1 D 1 B 1 A 1
2 D 2 B 2 B 2
3 D 3 D 3 D 3
4 A 4 D 4 B 4
5 B 5 C 5 B 5
6 B 6 B 6 D 6
7 C 7 B 7 C 7
8 D 8 A 8 B 8
9 B 9 D 9 A 9
10 A 10 A 10 D 10
11 A 11 A 11 A 11
12 A 12 B 12 B 12
13 B 13 A 13 D 13
14 B 14 D 14 A 14
15 A 15 A 15 A 15
A
D
B
B
B
C
D
B
A
A
A
D
D
B
A
July 01 July 31 A. Prime cost
Raw material inventory 93,200 69,600 DM used
Work in process inventory 146,400 120,000 DL
Finished goods inventory 72,000 104,800
Raw material inventory, beginning 93,200 D. Cost of goods transferred to the finished g
Raw material purchases 656,000
Raw materials available for use 749,200 E. Cost of goods sold
Raw material inventory, ending 69,600
Raw material used 679,600
Indirect material used 175,600
Direct material used 504,000
Direct labor (75% x 788,000) 591,000
Overhead
Various (given) 600,000
Indirect material (from above) 175,600
Indirect labor (25% x 788,000) 197,000 972,600
Total manufacturing cost 2,067,600
Work in process, beginning 146,400
Total cost of goods placed in process 2,214,000
Work in process, ending 120,000
Cost of goods manufactured 2,094,000
Finished goods, beginning 72,000
Cost of goods available for sale 2,166,000
Finished goods, ending 104,800
Cost of goods sold 2,061,200
504,000
591,000
1,095,000
591,000
972,600
1,563,600
2,067,600
2,061,200
Direct materials used 20,000.00 A. Prime Cost
Direct labor 60,000.00
Manufacturing Overhead 45,000.00 B. Conversion Cost
Total Manufacturing Costs 125,000.00 Checking: OK
DM 15,000.00
DL 20,000.00
MOH 15,000.00
TMC 50,000.00
105,000.00
Sales 32,000 A. Total Manufacturing Overhead Costs
Materials used (60% direct, 40% indirect) 7,240 Indirect materials used
Labor (50% direct, 50% indirect) 4,840 Indirect labor
Rent (90% factory, 10% office) 2,400 Factory rent
Factory utilities 800 Factory utilities
Depreciation on administration building 400 Factory insurance
Depreciation on delivery equipment 200
Salesmen’s salaries and commission 1,040 B. Total Product Costs
Insurance (60% factory, 40% office) 960 Direct Materials Used
Office supplies 600 Direct Labor
Advertising 560 Manufacturing Overhead
240.00
on on administration building 400.00
on on delivery equipment 200.00
s salaries and commission 1,040.00
384.00
600.00
560.00
3,424.00
anufactured 15,616.00
15,616.00
32,000.00
15,616.00
16,384.00
16,384.00
Period Costs) 3,424.00
12,960.00
Production 9,000 A. Product cost per unit absorption costing
Sales 7,000 Standard variable manufacturing costs
Standard variable manufacturing costs 20.00 Standard fixed manufacturing costs
Standard fixed manufacturing costs 25.00
Selling and administrative expenses (all fixed) 80,000.00
B. Product cost per unit under variable costing
Normal capacity 10,000 Standard variable manufacturing costs
Selling price per unit 75.00
Variable manufacturing cost (Materials) 12.00
Variable manufacturing cost (Others) 8.00 C. Product cost per unit under throughput costi
Variable manufacturing cost (Materials)
Budgeted fixed overhead 250,000.00
Standard fixed overhead 225,000.00
D. Variable costs expensed under absorption cos
Variable cost of goods sold
250,000.00
80,000.00
330,000.00
250,000.00
80,000.00
330,000.00
525,000.00
340,000.00
185,000.00
525,000.00
140,000.00
385,000.00
Absorption Costing Variable Costing
Sales 525,000.00 525,000.00
Cost of Goods Sold/Variable costs
Standard Cost of Goods Sold:
(7000 x 45) 315,000.00
(7000 x 20) 140,000.00
(7000 x 12)
Add (Deduct) Variances:
Materials - Favorable - -
Labor - Unfavorable - -
Variable MOH - Favorable - -
Fixed MOH - Unfavorable 25,000.00 -
Actual Cost of Goods Sold 340,000.00 140,000.00
Add Variable MOH (Others) - -
Add Variable S&A Expenses - -
Total Cost of Goods Sold/Variable Costs 340,000.00 140,000.00
Gross Income/Contribution Margin 185,000.00 385,000.00
Less Operating Expenses/Fixed Costs:
Fixed MOH - 250,000.00
Fixed S&A Expenses 80,000.00 80,000.00
Variable S&A Expenses - -
Total Operating Expenses/Fixed Costs 80,000.00 330,000.00
Income 105,000.00 55,000.00
Throughput Costing
525,000.00
84,000.00
-
-
-
-
84,000.00
72,000.00
-
156,000.00
369,000.00
250,000.00
80,000.00
-
330,000.00
39,000.00
Selling price per unit 24.00 A. Unit product cost under variable costing
Variable costs per unit:
Production 8.00 B. Unit product cost under absorption costing
Selling and administrativ 2.00
Fixed costs per year: C. Ending finished goods inventory under variable costing
Production 48,000.00
Selling and administrativ 36,000.00 D. Ending finished goods inventory under absorption costing
Change in inventory
MOH Per Unit
Difference in net income
8.00
12.00
120,000.00
56,000.00
64,000.00
8,000.00
2,000
4.00
8,000.00
July 01 July 31 A. Prime cost
Raw material inventory 91,000 70,000 DM used
Work in process inventory 145,000 115,000 DL
Finished goods inventory 75,000 102,000
Raw material inventory, beginning 91,000 D. Cost of goods transferred to the finished g
Raw material purchases 650,000
Raw materials available for use 741,000 E. Cost of goods sold
Raw material inventory, ending 70,000
Raw material used 671,000
Indirect material used 165,000
Direct material used 506,000
Direct labor (75% x 772,000) 579,000
Overhead
Various (given) 580,000
Indirect material (from above) 165,000
Indirect labor (25% x 772,000) 193,000 938,000
Total manufacturing cost 2,023,000
Work in process, beginning 145,000
Total cost of goods placed in process 2,168,000
Work in process, ending 115,000
Cost of goods manufactured 2,053,000
Finished goods, beginning 75,000
Cost of goods available for sale 2,128,000
Finished goods, ending 102,000
Cost of goods sold 2,026,000
506,000
579,000
1,085,000
579,000
938,000
1,517,000
2,023,000
2,026,000
Direct materials used 25,000.00 A. Prime Cost
Direct labor 30,000.00
Manufacturing Overhead 24,000.00 B. Conversion Cost
Total Manufacturing Costs 79,000.00 Checking: OK
DM 25,000.00
DL 30,000.00
MOH 24,000.00
TMC 79,000.00
54,000.00
Sales 30,500 A. Total Manufacturing Overhead Costs
Materials used (60% direct, 40% indirect) 7,200 Indirect materials used
Labor (50% direct, 50% indirect) 4,800 Indirect labor
Rent (90% factory, 10% office) 2,730 Factory rent
Factory utilities 750 Factory utilities
Depreciation on administration building 350 Factory insurance
Depreciation on delivery equipment 220
Salesmen’s salaries and commission 1,000 B. Total Product Costs
Insurance (60% factory, 40% office) 950 Direct Materials Used
Office supplies 575 Direct Labor
Advertising 510 Manufacturing Overhead
273.00
on on administration building 350.00
on on delivery equipment 220.00
s salaries and commission 1,000.00
380.00
575.00
510.00
3,308.00
anufactured 15,777.00
15,777.00
30,500.00
15,777.00
14,723.00
14,723.00
Period Costs) 3,308.00
11,415.00
Production 9,250 A. Product cost per unit absorption costing
Sales 7,750 Standard variable manufacturing costs
Standard variable manufacturing costs 18.00 Standard fixed manufacturing costs
Standard fixed manufacturing costs 24.00
Selling and administrative expenses (all fixed) 70,000.00
B. Product cost per unit under variable costing
Normal capacity 14,000 Standard variable manufacturing costs
Selling price per unit 78.00
Variable manufacturing cost (Materials) 15.00
Variable manufacturing cost (Others) 3.00 C. Product cost per unit under throughput costi
Variable manufacturing cost (Materials)
Budgeted fixed overhead 336,000.00
Standard fixed overhead 222,000.00
D. Variable costs expensed under absorption cos
Variable cost of goods sold
336,000.00
70,000.00
406,000.00
336,000.00
70,000.00
406,000.00
604,500.00
439,500.00
165,000.00
604,500.00
139,500.00
465,000.00
Absorption Costing Variable Costing
Sales 604,500.00 604,500.00
Cost of Goods Sold/Variable costs
Standard Cost of Goods Sold:
(7750 x 42) 325,500.00
(7750 x 18) 139,500.00
(7750 x 15)
Add (Deduct) Variances:
Materials - Favorable - -
Labor - Unfavorable - -
Variable MOH - Favorable - -
Fixed MOH - Unfavorable 114,000.00 -
Actual Cost of Goods Sold 439,500.00 139,500.00
Add Variable MOH (Others) - -
Add Variable S&A Expenses - -
Total Cost of Goods Sold/Variable Costs 439,500.00 139,500.00
Gross Income/Contribution Margin 165,000.00 465,000.00
Less Operating Expenses/Fixed Costs:
Fixed MOH - 336,000.00
Fixed S&A Expenses 70,000.00 70,000.00
Variable S&A Expenses - -
Total Operating Expenses/Fixed Costs 70,000.00 406,000.00
Income 95,000.00 59,000.00
Throughput Costing
604,500.00
116,250.00
-
-
-
-
116,250.00
27,750.00
-
144,000.00
460,500.00
336,000.00
70,000.00
-
406,000.00
54,500.00
Selling price per unit 25.00 A. Unit product cost under variable costing
Variable costs per unit:
Production 7.00 B. Unit product cost under absorption costing
Selling and administrativ 2.00
Fixed costs per year: C. Ending finished goods inventory under variable costing
Production 55,000.00
Selling and administrativ 40,000.00 D. Ending finished goods inventory under absorption costing
Change in inventory
MOH Per Unit
Difference in net income
7.00
12.00
104,000.00
33,000.00
48,000.00
15,000.00
3,000
5.00
15,000.00
July 01 July 31 A. Prime cost
Raw material inventory 90,000 68,000 DM used
Work in process inventory 142,000 117,000 DL
Finished goods inventory 74,000 101,000
Raw material inventory, beginning 90,000 D. Cost of goods transferred to the finished g
Raw material purchases 648,000
Raw materials available for use 738,000 E. Cost of goods sold
Raw material inventory, ending 68,000
Raw material used 670,000
Indirect material used 160,000
Direct material used 510,000
Direct labor (80% x 762,000) 609,600
Overhead
Various (given) 595,000
Indirect material (from above) 160,000
Indirect labor (20% x 762,000) 152,400 907,400
Total manufacturing cost 2,027,000
Work in process, beginning 142,000
Total cost of goods placed in process 2,169,000
Work in process, ending 117,000
Cost of goods manufactured 2,052,000
Finished goods, beginning 74,000
Cost of goods available for sale 2,126,000
Finished goods, ending 101,000
Cost of goods sold 2,025,000
510,000
609,600
1,119,600
609,600
907,400
1,517,000
2,027,000
2,025,000
Direct materials used 22,000.00 A. Prime Cost
Direct labor 28,000.00
Manufacturing Overhead 22,400.00 B. Conversion Cost
Total Manufacturing Costs 72,400.00 Checking: OK
DM 22,000.00
DL 28,000.00
MOH 22,400.00
TMC 72,400.00
50,400.00
Sales 31,750 A. Total Manufacturing Overhead Costs
Materials used (60% direct, 40% indirect) 7,000 Indirect materials used
Labor (50% direct, 50% indirect) 5,000 Indirect labor
Rent (90% factory, 10% office) 3,000 Factory rent
Factory utilities 750 Factory utilities
Depreciation on administration building 300 Factory insurance
Depreciation on delivery equipment 250
Salesmen’s salaries and commission 1,000 B. Total Product Costs
Insurance (60% factory, 40% office) 900 Direct Materials Used
Office supplies 550 Direct Labor
Advertising 500 Manufacturing Overhead
300.00
on on administration building 300.00
on on delivery equipment 250.00
s salaries and commission 1,000.00
360.00
550.00
500.00
3,260.00
anufactured 15,990.00
15,990.00
31,750.00
15,990.00
15,760.00
15,760.00
Period Costs) 3,260.00
12,500.00
Production 9,000 A. Product cost per unit absorption costing
Sales 8,250 Standard variable manufacturing costs
Standard variable manufacturing costs 16.00 Standard fixed manufacturing costs
Standard fixed manufacturing costs 21.00
Selling and administrative expenses (all fixed) 84,000.00
B. Product cost per unit under variable costing
Normal capacity 12,000 Standard variable manufacturing costs
Selling price per unit 76.00
Variable manufacturing cost (Materials) 10.00
Variable manufacturing cost (Others) 6.00 C. Product cost per unit under throughput costi
Variable manufacturing cost (Materials)
Budgeted fixed overhead 252,000.00
Standard fixed overhead 189,000.00
D. Variable costs expensed under absorption cos
Variable cost of goods sold
252,000.00
84,000.00
336,000.00
252,000.00
84,000.00
336,000.00
627,000.00
368,250.00
258,750.00
627,000.00
132,000.00
495,000.00
Absorption Costing Variable Costing
Sales 627,000.00 627,000.00
Cost of Goods Sold/Variable costs
Standard Cost of Goods Sold:
(8250 x 37) 305,250.00
(8250 x 16) 132,000.00
(8250 x 10)
Add (Deduct) Variances:
Materials - Favorable - -
Labor - Unfavorable - -
Variable MOH - Favorable - -
Fixed MOH - Unfavorable 63,000.00 -
Actual Cost of Goods Sold 368,250.00 132,000.00
Add Variable MOH (Others) - -
Add Variable S&A Expenses - -
Total Cost of Goods Sold/Variable Costs 368,250.00 132,000.00
Gross Income/Contribution Margin 258,750.00 495,000.00
Less Operating Expenses/Fixed Costs:
Fixed MOH - 252,000.00
Fixed S&A Expenses 84,000.00 84,000.00
Variable S&A Expenses - -
Total Operating Expenses/Fixed Costs 84,000.00 336,000.00
Income 174,750.00 159,000.00
15,750.00
15,750.00
Throughput Costing
627,000.00
82,500.00
-
-
-
-
82,500.00
54,000.00
-
136,500.00
490,500.00
252,000.00
84,000.00
-
336,000.00
154,500.00
4,500.00
4,500.00
Selling price per unit 22.00 A. Unit product cost under variable costing
Variable costs per unit:
Production 6.00 B. Unit product cost under absorption costing
Selling and administrativ 3.00
Fixed costs per year: C. Ending finished goods inventory under variable costing
Production 51,250.00
Selling and administrativ 38,000.00 D. Ending finished goods inventory under absorption costing
Change in inventory
MOH Per Unit
Difference in net income
6.00
11.00
88,000.00
14,750.00
26,000.00
11,250.00
2,250
5.00
11,250.00
July 01 July 31 A. Prime cost
Raw material inventory 92,000 65,000 DM used
Work in process inventory 140,000 120,000 DL
Finished goods inventory 75,000 100,000
Raw material inventory, beginning 92,000 D. Cost of goods transferred to the finished g
Raw material purchases 650,000
Raw materials available for use 742,000 E. Cost of goods sold
Raw material inventory, ending 65,000
Raw material used 677,000
Indirect material used 177,000
Direct material used 500,000
Direct labor (75% x 800,000) 600,000
Overhead
Various (given) 625,000
Indirect material (from above) 177,000
Indirect labor (25% x 800,000) 200,000 1,002,000
Total manufacturing cost 2,102,000
Work in process, beginning 140,000
Total cost of goods placed in process 2,242,000
Work in process, ending 120,000
Cost of goods manufactured 2,122,000
Finished goods, beginning 75,000
Cost of goods available for sale 2,197,000
Finished goods, ending 100,000
Cost of goods sold 2,097,000
500,000
600,000
1,100,000
600,000
1,002,000
1,602,000
2,102,000
2,097,000
Direct materials used 23,500.00 A. Prime Cost
Direct labor 27,250.00
Manufacturing Overhead 21,800.00 B. Conversion Cost
Total Manufacturing Costs 72,550.00 Checking: OK
DM 23,500.00
DL 27,250.00
MOH 21,800.00
TMC 72,550.00
49,050.00
Sales 34,000 A. Total Manufacturing Overhead Costs
Materials used (60% direct, 40% indirect) 7,500 Indirect materials used
Labor (50% direct, 50% indirect) 5,750 Indirect labor
Rent (90% factory, 10% office) 3,210 Factory rent
Factory utilities 820 Factory utilities
Depreciation on administration building 410 Factory insurance
Depreciation on delivery equipment 245
Salesmen’s salaries and commission 965 B. Total Product Costs
Insurance (60% factory, 40% office) 870 Direct Materials Used
Office supplies 475 Direct Labor
Advertising 490 Manufacturing Overhead
321.00
on on administration building 410.00
on on delivery equipment 245.00
s salaries and commission 965.00
348.00
475.00
490.00
3,254.00
anufactured 17,481.00
17,481.00
34,000.00
17,481.00
16,519.00
16,519.00
Period Costs) 3,254.00
13,265.00
Production 9,500 A. Product cost per unit absorption costing
Sales 8,950 Standard variable manufacturing costs
Standard variable manufacturing costs 17.00 Standard fixed manufacturing costs
Standard fixed manufacturing costs 20.00
Selling and administrative expenses (all fixed) 84,000.00
B. Product cost per unit under variable costing
Normal capacity 11,500 Standard variable manufacturing costs
Selling price per unit 75.00
Variable manufacturing cost (Materials) 12.00
Variable manufacturing cost (Others) 5.00 C. Product cost per unit under throughput costi
Variable manufacturing cost (Materials)
Budgeted fixed overhead 230,000.00
Standard fixed overhead 190,000.00
D. Variable costs expensed under absorption cos
Variable cost of goods sold
230,000.00
84,000.00
314,000.00
230,000.00
84,000.00
314,000.00
671,250.00
371,150.00
300,100.00
671,250.00
152,150.00
519,100.00
Absorption Costing Variable Costing
Sales 671,250.00 671,250.00
Cost of Goods Sold/Variable costs
Standard Cost of Goods Sold:
(8950 x 37) 331,150.00
(8950 x 17) 152,150.00
(8950 x 12)
Add (Deduct) Variances:
Materials - Favorable - -
Labor - Unfavorable - -
Variable MOH - Favorable - -
Fixed MOH - Unfavorable 40,000.00 -
Actual Cost of Goods Sold 371,150.00 152,150.00
Add Variable MOH (Others) - -
Add Variable S&A Expenses - -
Total Cost of Goods Sold/Variable Costs 371,150.00 152,150.00
Gross Income/Contribution Margin 300,100.00 519,100.00
Less Operating Expenses/Fixed Costs:
Fixed MOH - 230,000.00
Fixed S&A Expenses 84,000.00 84,000.00
Variable S&A Expenses - -
Total Operating Expenses/Fixed Costs 84,000.00 314,000.00
Income 216,100.00 205,100.00
11,000.00
11,000.00
Throughput Costing
671,250.00
107,400.00
-
-
-
-
107,400.00
47,500.00
-
154,900.00
516,350.00
230,000.00
84,000.00
-
314,000.00
202,350.00
2,750.00
2,750.00
Selling price per unit 26.00 A. Unit product cost under variable costing
Variable costs per unit:
Production 9.00 B. Unit product cost under absorption costing
Selling and administrativ 4.00
Fixed costs per year: C. Ending finished goods inventory under variable costing
Production 56,250.00
Selling and administrativ 35,000.00 D. Ending finished goods inventory under absorption costing
Change in inventory
MOH Per Unit
Difference in net income
9.00
14.00
117,000.00
35,500.00
43,000.00
7,500.00
1,500
5.00
7,500.00