Acct 2 Chapter 07 exercises 5 and 10 extra problems

Acct 2 Chapter 07 exercises 5 and 10 extra problems - Acct...

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Acct 2 – Selected Solutions Exercises 7-5 and 7-10 Exercise 7-5  (30 minutes) 1. Under variable costing, only the variable manufacturing costs are  included in product costs. Direct materials. ...................................... $ 60 Direct labor. ............................................. 30 Variable manufacturing overhead. ...........       10     Unit product cost. .................................... $100 Note that selling and administrative expenses are not treated as  product costs; that is, they are not included in the costs that are  inventoried. These expenses are always treated as period costs  and are charged against the current period’s revenue. 2. The variable costing income statement appears below: Sales. .................................................... $1,800,000 Variable expenses: Variable cost of goods sold: Beginning inventory. ........................ $            0 Add variable manufacturing costs  (10,000 units × $100 per unit). ......   1,000,000     Goods available for sale.
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Acct 2 Chapter 07 exercises 5 and 10 extra problems - Acct...

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