CHAPTER 2 Solutions to Multiple Choice Exercises

# CHAPTER 2 Solutions to Multiple Choice Exercises -...

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CHAPTER 2 MULTIPLE-CHOICE EXERCISES 2–1 c 2–2 d 2–3 d Conversion cost per unit = \$6 + \$10 = \$16 2–4 b Sales = \$75 × 1,000 units = \$75,000 Production cost per unit = \$15 + \$6 + \$10 = \$31 Cost of goods sold = \$31 × 1,000 = \$31,000 Gross profit = \$75,000 – \$31,000 = \$44,000 2–5 e 2–6 c 2–7 d 2–8 c 2–9 a 2–10 b 2–11 e Prime cost per unit = \$8.65 + \$1.10 = \$9.75 2–12 b 2–13 a Total prime cost = \$50,000 + \$20,000 = \$70,000 Prime cost per unit = 10,000 \$70,000 = \$7.00 2–14 c Total conversion cost = \$20,000 + \$130,000 = \$150,000
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Unformatted text preview: Conversion cost per unit = 10,000 \$150,000 = \$15.00 2–15 b Cost of goods sold = \$50,000 + \$20,000 + \$130,000 = \$200,000 Cost of goods sold per unit = 10,000 \$200,000 = \$20.00 2–16 b Sales = \$31 × 10,000 = \$310,000 Gross margin = \$310,000 – \$200,000 = \$110,000 Gross margin per unit = 10,000 \$110,000 = \$11.00 2–17 c Period expense = \$40,000 + \$36,000 = \$76,000 2–18 a Operating income = \$310,000 – \$200,000 – \$76,000 = \$34,000...
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