TEST QUESTIONS:

Questions 1-3 refer to the following:

The following selected data for March were taken from Rubenstein
Company's financial statements: Cost of goods available for sale Manufacturing overhead
Cost of goods manufactured
Finished goods inventory ‑ ending
Direct materials used
Sales
Selling and administrative expenses
Direct labor
Work in process inventory ‑ beginning
$ 65,000
20,000
51,000
10,000
15,000
105,000
30,000
20,000
0

1. The gross margin was:

1. $55,000. 2. $54,000. 3. $50,000. 4. $40,000.

2. The beginning finished goods inventory was:

1. $24,000. 2. $ 9,000. 3. $10,000. 4. $14,000.

3. The ending work in process inventory was:

1. $ 4,000. …show more content…

will decrease remain the same will increase 4. will decrease will increase will decrease

14. The following data pertain to last year's operations at Hruska Corp.:

Units in beginning inventory
Units produced
Units sold
0
5,000
4,000
Selling price per unit
$180.00
Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative

$20.00
30.00
10.00
20.00
Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative

$100,000
300,000

What was the variable costing net income last year?

1. $20,000 2. $80,000 3. $0 4. $60,000

15. The following data pertain to last year's operations at Clarkson, Incorporated:

Units in beginning inventory 0 Units produced 100,000 Units sold 98,000

Selling price per uni $10.00

Variable costs per unit: Direct materials $1.50 Direct labor 2.50 Variable manufacturing overhead 1.00 Variable selling and administrative 2.00

Fixed costs per year: Fixed manufacturing overhead $200,000 Fixed selling and administrative 50,000

What was the absorption costing net income last year?

1. $44,000 2. $48,000 3. $50,000 4. $49,000

16. Home Company will open a new store on January 1. Based on experience from its other retail outlets, Home Company is making the following sales projections:

Cash Sales Credit