Eam1 - What will ending inventory be using full costing? a....

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Accounting 285 – Exam II – Fall 2006 Use the following information for the next FIVE questions: Grossman Company sells miniature Bears footballs. Following is information about its revenue and cost structure: Selling Price $18.00 per ball Variable Costs: Production (manufacturing costs) $3.00 per ball Selling and Administration (non-manufacturing costs) $1.00 per ball Fixed Costs: Production (manufacturing costs) $4,000,000 per year Selling and Administration (non-mfg costs) $3,000,000 per year 1. Assume that 1,000,000 units are produced and 800,000 units are sold. There is no beginning inventory. What will ending inventory be using variable costing? a. $200,000 b. $600,000 c. $800,000 d. $1,400,000 2. Assume that 1,000,000 units are produced and 800,000 units are sold. There is no beginning inventory.
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Unformatted text preview: What will ending inventory be using full costing? a. $1,600,000 b. $600,000 c. $800,000 d. $1,400,000 3. Assume that 1,000,000 units are produced and 900,000 units are sold. There is no beginning inventory. What will income be using variable costing? a. $5,600,000 b. $12,600,000 c. $6,000,000 d. $5,500,000 4. Assume that 1,000,000 units are produced and 900,000 units are sold. There is no beginning inventory. What will income be using full costing? a. $5,600,000 b. $12,600,000 c. $6,000,000 d. $5,500,000 5. Assume that 1,000,000 units are produced and 900,000 units are sold. There is no beginning inventory. What is the cost of one unit of inventory using variable costing? a. $3.00 b. $4.00 c. $7.00 d. $8.00 Version 1 1 B 2 D 3 A 4 C 5 A...
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Eam1 - What will ending inventory be using full costing? a....

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