In the month of march the caron company produced

10. In the month of March, the Caron Company produced 100,000 units but only sold 85,000
units. Costs incurred were:

Direct materials $18,000
Direct labour $36,000
Variable manufacturing overhead $18,000
Variable selling & administrative $16,000
Fixed manufacturing overhead $19,000
Fixed selling & administrative $10,000
Total $117,000
If the company utilizes absorption costing, the value in the finished goods inventory account at
the end of March will be:
11. In the month of December the Carrier Manufacturing Company produced 28,000 units and
sold 30,000 units. Under absorption costing:
12. In the month of November, the Philly Company produced and sold 40,000 units of a single
product. Costs incurred during the month included:
Direct materials and labour $600,000
Variable manufacturing overhead $380,000
Fixed manufacturing overhead $360,000
Variable selling & administrative $280,000
Using variable costing, the unit product cost would be:

13. In the month of November, the Linux Company provided the following information:
Units in beginning inventory 0
Units produced 20,000
Units sold 18,000
Variable costs per unit:
Direct materials $10
Direct labour 14
Variable manufacturing overhead 6
Variable selling & administrative 5
Fixed costs:
Fixed manufacturing overhead $22,000
Fixed selling & administrative $9,000
Using absorption costing the unit product cost would be:
a) $35.00.
b) $30.00.
c) $31.10.
d) $36.10.
Answer: c
14. In 2015, the Jetson Company reported net operating income of $160,000 using absorption
costing and $146,000 using variable costing. With this information only it is known that: