Cost Acc
Name: Class: Cost Accounting Date: 02.12.2012
Quiz 5
1) Absorption costing:
A) expenses marketing costs as cost of goods sold
B) treats direct manufacturing costs as a period cost
C) includes fixed manufacturing overhead as an inventoriable cost
D) is required for internal reports to managers
2) Variable costing:
A) expenses administrative costs as cost of goods sold
B) treats direct manufacturing costs as a product cost
C) includes fixed manufacturing overhead as an inventoriable cost
D) is required for external reporting to shareholders
3) The contribution-margin format of the income statement:
A) is used with absorption costing
B) highlights the lump sum of fixed manufacturing costs
C) distinguishes manufacturing costs from nonmanufacturing costs
D) calculates gross margin
4) The gross-margin format of the income statement:
A) distinguishes between manufacturing and nonmanufacturing costs
B) distinguishes variable costs from fixed costs
C) is used with variable costing
D) calculates contribution margin
Answer the following questions using the information below:
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
Variable manufacturing costs $20.00 per unit Variable marketing costs $ 3.00 per unit Fixed manufacturing costs $ 7.00 per unit Administrative expenses, all fixed $15.00 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 250 units
5) What is cost of goods sold per unit using variable costing?
A) $20
B) $23
C) $30
D) $45
6) What is cost of goods sold using variable costing?
A) $35,000
B) $40,000 20$*1750=35,000$
C) $47,250
D) $54,000
7) What is contribution margin using
Quiz 5
1) Absorption costing:
A) expenses marketing costs as cost of goods sold
B) treats direct manufacturing costs as a period cost
C) includes fixed manufacturing overhead as an inventoriable cost
D) is required for internal reports to managers
2) Variable costing:
A) expenses administrative costs as cost of goods sold
B) treats direct manufacturing costs as a product cost
C) includes fixed manufacturing overhead as an inventoriable cost
D) is required for external reporting to shareholders
3) The contribution-margin format of the income statement:
A) is used with absorption costing
B) highlights the lump sum of fixed manufacturing costs
C) distinguishes manufacturing costs from nonmanufacturing costs
D) calculates gross margin
4) The gross-margin format of the income statement:
A) distinguishes between manufacturing and nonmanufacturing costs
B) distinguishes variable costs from fixed costs
C) is used with variable costing
D) calculates contribution margin
Answer the following questions using the information below:
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
Variable manufacturing costs $20.00 per unit Variable marketing costs $ 3.00 per unit Fixed manufacturing costs $ 7.00 per unit Administrative expenses, all fixed $15.00 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 250 units
5) What is cost of goods sold per unit using variable costing?
A) $20
B) $23
C) $30
D) $45
6) What is cost of goods sold using variable costing?
A) $35,000
B) $40,000 20$*1750=35,000$
C) $47,250
D) $54,000
7) What is contribution margin using