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 = $15.00 215 b Cost of goods sold = $50,000 + $20,000 + $130,000 = $200,000 Cost of goods sold per unit = 10,000 $200,000 = $20.00 216 b Sales = $31 10,000 = $310,000 Gross margin = $310,000 $200,000 = $110,000 Gross margin per unit = 10,000 $110,000 = $11.00 217 c Period expense = $40,000 + $36,000 = $76,000 218 a Operating income = $310,000 $200,000 $76,000 = $34,000...
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