Chapter 6 Exam 2 Accounting

Assuming a beginning inv of ______, production of ____ units and sales of _____ units, the dollar value of the ending inventory under the variable costing would be:

units in ending inv = beginning inv / production units - sales units value of ending inv under variable costing = units in ending inv x variable production cost

What is the total period cost for the month under variable costing?

(Variable selling and administrative expense x units sold) + fixed manufacturing overhead + fixed selling and administrative expense

What is the absorption costing unit product cost for the month?

Fixed Manufacturing overhead cost = fixed manufacturing / units produced Absorption costing unit product cost = Direct materials + Direct labor + Variable manufacturing overhead + fixed manufacturing overhead cost

The company's common fixed expenses total ______. The break-even in sales dollars for ________ (segment) is closest to:

Segment contribution margin = segment sales- segment variable expenses segment CM ratio = segment contribution margin / segment sales dollar sales for a segment to break even = segment traceable fixed expenses / segment CM ratio

The variable costing unit product cost is:

Variable costing unit product cost = Direct Materials + Direct Labor + Variable manufacturing overhead

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

fixed manufacturing overhead per unit = fixed production / units produced units in ending inv = beginning inv / units produced - units sold manufacturing overhead deferred in inv = (fixed manufacturing overhead per unit x units in ending inv) - units in beginning inv

The break-even in sales dollars for _________ (segment) is closest to:

segment CM ratio = segment contribution margin / segment sales dollar sales for a segment to break even = segment traceable fixed expenses / segment CM ratio

Under absorption costing, the ending inventory for the year would be valued at:

step 1. direct materials / manufactured units step 2. direct labor / manufactured units step 3. variable manufacturing overhead / manufactured units step 4. fixed manufacturing overhead / manufactured units step 5. add all steps step 6. ending inventory= (beginning inv / manufactured units - sold units) x step 5.

Between the beginning and the end of the year, the inventory level:

step 1. fixed manufacturing overhead per unit = fixed manufacturing overhead / production units step 2. manufacturing overhead deferred in inv = (fixed manufacturing overhead per unit x units in ending inv) - (fixed manufacturing overhead per unit x units in beginning inv) step 3. manufacturing overhead deferred in inv (step 2) / fixed manufacturing overhead per unit (step 1)

** The contribution margin per unit was:

step 1. selling price = sales / units sold step 2. variable expenses = (direct materials + direct labor + variable manufacturing overhead) / variable selling and admin overhead step 3. Unit CM = selling price - variable expenses

What is the net operating income for the month under absorption costing?

step 1. selling price x units SOLD step 2. direct materials + direct labor + variable manufacturing overhead + (fixed manufacturing / units PRODUCED) step 3.absorption cost x units SOLD step 4. sales (step 1) + cost of goods sold (step 3) step 5. variable selling and admin expense x units SOLD / fixed selling and administrative expense step 6. gross margin (step 4) - selling and admin expenses (step 5)

The total gross margin for the month under absorption costing is:

step 1. selling price x units SOLD step 2. direct materials + direct labor + variable manufacturing overhead + (fixed manufacturing overhead / units PRODUCED) step 3. step 2 x units SOLD step 4. (step 1) - (step 3)

The total contribution margin for the month under variable costing is:

step 1. variable costing unit product cost = direct materials + direct labor + variable manufacturing overhead unit cm = selling price - (variable costing unit

Under absorption costing, for (given month) the company would report a: ______ profit or loss

step 1.(sales / $ per unit) step 2. variable cost of goods sold / units SOLD step 3. fixed manufacturing expenses / units manufactured step 4. (step 2) +(step 3) step 5. absorption costing unit product cost x units SOLD step 6. sales - cost of goods sold step 7. variable selling expense / fixed selling and admin expense step 8. (step 6) - (step 7)

What is the amount of the common fixed expense not traceable to the individual divisions?

total segment margin = division 1 divisional segment margin + division 2 divisional segment margin common fixed assets = total segment margin - net operating income

What is the company's net operating income (loss)?

total segment margin = division 1 divisional segment margin + division 2 divisional segment margin total net operating income = total segment margin - common fixed expenses

Last year, the company's variable production costs totaled $______ and its fixed manufacturing overhead costs totaled $_______. The company produced ______ units during the year and sold _______ units. There were no units in the beginning inventory. Which of the following statements is true?

units in ending inv = units in beg inv + units produced - units sold absorption costing unit product cost = (variable production costs + fixed manufacturing overhead costs) / produced units variable costing unit product cost = variable production costs / produced units step 1. absorption costing ending inv = absorption costing unit product cost x units in ending inv step 2. variable costing ending inv = variable costing unit product cost x units in ending inv step 3. difference in ending inv = step 1 - step 2