Indiana Company incurred the following costs during the previous year when plann

Question

Indiana Company incurred the following costs during the previous year when planned production and actual production each totaled 20,000 units:

If Indiana uses variable costing, the total inventoried costs for the year would be:

$860,000.

$550,000.

$710,000.

$490,000.

$770,000.

Indiana's per-unit inventoried cost under variable costing is (Do not round your intermediate calculations round your final answer to 2 decimal places):

$48.00.

$35.50.

$17.00.

$43.00.

$32.50.

If Indiana uses absorption costing, the total inventoried costs for the year would be:

$860,000.

$490,000.

$550,000.

$710,000.

$770,000

Indiana's per-unit inventoried cost under absorption costing is:

$32.50.

$48.00.

$43.00.

$35.50.

$17.00.

  Direct materials used $280,000      Direct labor 210,000      Variable manufacturing overhead 220,000      Fixed manufacturing overhead 150,000      Variable selling and administrative costs 60,000      Fixed selling and administrative costs 90,000   

Explanation / Answer

a) Total inventoried cost under variable cost = 280000+210000+220000 = 710000

so answer is c) 710000

b) per unit under variable costing = 710000/20000 = 35.50 per unit

so answer is b) $35.50

c) Inventoried cost under absorption costing = 280000+220000+210000+150000 = 860000

so answer is a) $860000

d) Per unit under absorption costing = 860000/20000 = 43 per unit

so answer is c) $43.00

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---