# 6 50000 b 0 155 0 155 20000 c 155 50000 155 70000 155

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Chapter 7 / Exercise 1
OM
Collier/Evans
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\$6 × 50,000b ? × 0; \$1.55 × 0; \$1.55 × 20,000c\$1.55 × 50,000; \$1.55 × 70,000; \$1.55 × 30,000d\$1.55 × 0; \$1.55 × 20,000; \$1.55 × 0e\$.15 × 50,000(2)Absorption CostingApril 2011May 2011June 2011RevenuesaCost of goods soldBeginning inventoryb\$ 0\$300,000\$ 0\$300,000\$ 61,000\$300,000Variable manufacturing costsc77,500108,50046,500Allocated fixed manufacturing costsd105,000105,000105,000Cost of goods available for sale182,500213,500212,500Deduct ending inventorye0(61,000)0Adjustment for prod. vol. var.f000Cost of goods sold(182,500)(152,500)(212,500)Gross margin117,500147,50087,500Operating costsVariable selling costsg7,5007,5007,500Fixed administrative costs35,00035,00035,000Total operating costs(42,500)(42,500)(42,500)Operating income\$ 75,000\$105,000\$ 45,000a\$6 × 50,000b \$?× 0; \$3.65× 0; \$3.05 × 20,000c\$1.55 × 50,000; \$1.55 × 70,000; \$1.55 × 30,000d(\$105,000/50,000)×50,000; (\$105,000/70,000) ×70,000; (105,000/30,000)×30,000e\$3.65 × 0; \$3.05 × 20,000; \$5.05 × 0
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Chapter 7 / Exercise 1
OM
Collier/Evans
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