Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 9, Problem 9.17MCQ
Queen Sales, Inc. has just completed its first year of operations. The company has not had any sales to date. Queen has incurred the following costs associated with its production as of December 31, Year 1:
| Direct materials | $45,000 |
| Production labor | 35,000 |
| Bookkeeper salary | 28,000 |
| Factory utilities | 18,500 |
| Office rent | 12,000 |
| Factory supervisor salary | 9,600 |
| Machine maintenance contract | 7,500 |
Under absorption costing, what is the inventory amount shown on the
- a. $155,600
- b. $115,600
- c. $98,500
- d. $80,000
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Students have asked these similar questions
Twisted Pretzel, Inc. had beginning Work-in-Process Inventory (WIP) of $10,000 and makes only one product. It incurred the following costs during the year:
Factory production worker wages
$ 40,000
Direct materials
20,000
Allocated factory rent
60,000
Allocated factory utilities
70,000
Sales commissions
100,000
At the end of the year WIP totaled $ 4,000. Calculate the total costs of goods manufactured and transferred to Finished Goods Inventory.
Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month:
Cost Information
Accounts
Amounts
Direct materials costs
$30,000
Direct labor costs
55,000
Variable manufacturing overhead costs
20,000
Fixed manufacturing overhead costs
25,000
Variable Selling and Administrative expenses
15,000
Fixed Selling and Administrative expenses
10,000
There was no inventory at the beginning of the period. If 1,500 units of inventory remain unsold at the end of the period, compute the costs of goods sold for the month under variable costing.
Group of answer choices
$89,250
$110,500
$15,750
$19,500
Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current period:
Cost Information
Accounts
Amounts
Direct materials costs
$30,000
Direct labor costs
55,000
Variable manufacturing overhead costs
20,000
Fixed manufacturing overhead costs
25,000
Variable Selling and Administrative expenses
15,000
Fixed Selling and Administrative expenses
10,000
There was no inventory at the beginning of the period. If 1,500 units of inventory remain unsold at the end of the period, compute the amount of inventory to be reported in the balance sheet at the end of the current month under absorption costing.
Group of answer choices
$15,750
$19,500
$23,250
$18,000
Chapter 9 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 9 - Differences in operating income between variable...Ch. 9 - Why is the term direct costing a misnomer?Ch. 9 - Do companies in either the service sector or the...Ch. 9 - Explain the main conceptual issue under variable...Ch. 9 - Companies that make no variable-cost/fixed-cost...Ch. 9 - The main trouble with variable costing is that it...Ch. 9 - Give an example of how, under absorption costing,...Ch. 9 - What are the factors that affect the breakeven...Ch. 9 - Critics of absorption costing have increasingly...Ch. 9 - What are two ways of reducing the negative aspects...
Ch. 9 - Prob. 9.11QCh. 9 - Describe the downward demand spiral and its...Ch. 9 - Will the financial statements of a company always...Ch. 9 - Prob. 9.14QCh. 9 - The difference between practical capacity and...Ch. 9 - In comparing the absorption and variable cost...Ch. 9 - Queen Sales, Inc. has just completed its first...Ch. 9 - King Tooling has produced and sold the following...Ch. 9 - The following information relates to Drexler Inc.s...Ch. 9 - Prob. 9.20MCQCh. 9 - Variable and absorption costing, explaining...Ch. 9 - Throughput costing (continuation of 9-21). The...Ch. 9 - Variable and absorption costing, explaining...Ch. 9 - Throughput costing (continuation of 9-23). The...Ch. 9 - Variable versus absorption costing. The Tomlinson...Ch. 9 - Absorption and variable costing. (CMA) Miami,...Ch. 9 - Absorption versus variable costing. Horace Company...Ch. 9 - Candyland uses standard costing to produce a...Ch. 9 - Capacity management, denominator-level capacity...Ch. 9 - Denominator-level problem. Thunder Bolt Inc., is a...Ch. 9 - Variable and absorption costing and breakeven...Ch. 9 - Variable costing versus absorption costing. The...Ch. 9 - Throughput Costing (continuation of 9-32) 1....Ch. 9 - Variable costing and absorption costing, the Z-Var...Ch. 9 - Comparison of variable costing and absorption...Ch. 9 - Effects of differing production levels on...Ch. 9 - Alternative denominator-level capacity concepts,...Ch. 9 - Motivational considerations in denominator-level...Ch. 9 - Denominator-level choices, changes in inventory...Ch. 9 - Variable and absorption costing and breakeven...Ch. 9 - Downward demand spiral. Market.com is about to...Ch. 9 - Absorption costing and production-volume...Ch. 9 - Operating income effects of denominator-level...Ch. 9 - Variable and absorption costing, actual costing....Ch. 9 - Prob. 9.45PCh. 9 - Cost allocation, responsibility accounting, ethics...Ch. 9 - Absorption, variable, and throughput costing....Ch. 9 - Costing methods and variances, comprehensive. Rob...
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