Commerce 2AB3 Tutorial3

# Calculate the product inventoriable cost per unit

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Unformatted text preview: Product (Inventoriable) cost per unit under variable costing and absorption costing? Variable Absorption Costing Costing a. \$79 \$151 b. \$96 \$119 c. \$96 \$151 d. \$79 \$119 e. None of the above 2. Calculate the Period cost per unit under variable costing and absorption costing? a. b. c. d. e. Variable Costing \$89 \$96 \$89 \$79 None of the above Absorption Costing \$49 \$119 \$72 \$49 3. a. b. c. d. e. 4. a. b. c. d. e. Rose Corporation produces a single product. Last year, the company had net operating income of \$50,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was \$2.00 per unit, what would have been the net operating income using absorption costing? \$40,000 \$50,000 \$60,000 \$86,000 None of the above For the most recent year, Atlantic Company's net income computed by the absorption costing method was \$7,400, and its net income computed by the variable costing method was \$10,100. The company's unit product cost was \$17 under variable costing and \$22 under absorption costing. What must have been the beginning inventory if the ending inventory consisted of 1,460 units? 920 units 1,460 units 2,000 units 12,700 units None of the above...
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• Winter '14