Indiana Company incurred the following costs during the previous year when plann
ID: 2466518 • Letter: I
Question
Indiana Company incurred the following costs during the previous year when planned production and actual production each totaled 20,000 units:
90,000
6.
If Indiana uses variable costing, the total inventoried costs for the year would be:
$750,000.
$820,000.
$620,000.
$860,000.
$550,000.
7.
Indiana's per-unit inventoried cost under variable costing is (Do not round your intermediate calculations round your final answer to 2 decimal places):
$43.00.
$37.50.
$50.00.
$19.00.
$34.50.
8.
If Indiana uses absorption costing, the total inventoried costs for the year would be:
$820,000.
$860,000.
$550,000.
$750,000.
$620,000.
9.
Indiana's per-unit inventoried cost under absorption costing is:
$34.50.
$50.00.
$37.50.
$19.00.
$43.00.
Direct materials used $370,000 Direct labor 180,000 Variable manufacturing overhead 200,000 Fixed manufacturing overhead 110,000 Variable selling and administrative costs 70,000 Fixed selling and administrative costs90,000
Explanation / Answer
6)correct option is "A" - 750000
product cost = 370000+180000+200000
7) Per unit cost = 750000/ 20000 = $ 37.5
correct option is "B" - 37.5
8) correct option is "B" - 860000
Product cost = 370000+180000+200000+110000
9)correct option is ""E"
Unit cost = 860000 / 20000 = $ 43