1) A June sales forecast projects that 5,500 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 10% higher than the beginning inventory of 650 units. Merchandise purchases for June are projected to include how many units?
$5,825 units
$5,435 units
$5,500 units
6,215 units
5,565 units
2) Which of the following best describes costs assigned to the product under the variable costing method?
Direct labor (DL)
Direct Materials (DM)
Variable selling and administrative
Variable manufacturing overhead
Fixed selling and Administrative
Fixed manufacturing overhead
3) Under absorption costing, a company has the following unit costs when 8,500 units were produced.
Direct labor $8.75 per unit
Direct material $9.25 per unit
Variable overhead $7.00 per unit
Fixed overhead (68,000/8500 units) 8.00 per unit
Total production cost $33.00 per unit
4)Compute the total production cost per unit under absorption costing if 34,000 had been produced.
$27.00
$18.00
$25.00
$28.00
$33.00