Managerial Accounting Homework Revew Chapter 5 Answer Key

# Managerial Accounting Homework Revew Chapter 5 Answer Key -...

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Chapter 5 Homework Assignment Review Sheet EXERCISES E4. LO 1 Variable cost per unit \$300 Fixed manufacturing overhead per unit (\$600,000 ÷ 1,000 units) 600 Full cost per unit \$900 Ending inventory under full costing: \$900 × 100 units = \$90,000 E5. LO 1, 2 Ending inventory under variable costing: \$300 × 100 = \$30,000 E6. LO 1 Full cost per unit is \$900 per Exercise 4. Therefore, cost of goods sold under full costing is \$900 × 900 units sold = \$810,000. E7. LO 1, 2 Variable cost per unit is \$300. Therefore variable cost of goods sold is \$300 × 900 = \$270,000. Under variable costing, the \$600,000 of fixed manufacturing overhead is treated as a period expense. E8. LO 1 Sales (\$1,500 × 900 pairs) \$1,350,000 Less cost of goods sold (\$900 × 900 pairs) 810,000 Gross margin 540,000 Less selling expense 200,000 Less administrative expense 100,000 Net income \$ 240,000 E9. LO 1, 2 Sales (\$1,500 × 900 pairs) \$1,350,000 Less variable cost of goods sold (\$300 × 900 pairs) 270,000 Contribution margin 1,080,000

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Less fixed manufacturing overhead 600,000 Less selling expense 200,000 Less administrative expense 100,000 Net income \$ 180,000 E10. LO 1 The difference in net income between full and variable costing is \$240,000 - \$180,000 = \$60,000. This is equal to the amount of fixed manufacturing overhead in ending inventory under full costing (\$600 × 100 pairs = \$60,000). PROBLEMS P1. LO 1, 2, 3, 5 a. 2008 2009 2010 Fixed production overhead \$ 600,000 \$ 600,000 \$ 600,000 Divided by units produced 10,000 12,000 8,000 Fixed production overhead per unit 60 50 75 Variable production costs per unit 100 100 100 Full cost per unit \$ 160 \$ 150 \$ 175 Sales (\$200 * 10,000 units) \$ 2,000,000 \$ 2,000,000 \$ 2,000,000 Less cost of goods sold:
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## This note was uploaded on 09/22/2009 for the course BUSINESS ACG 2071 taught by Professor Love during the Fall '09 term at Florida State College.

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Managerial Accounting Homework Revew Chapter 5 Answer Key -...

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