Reference no: EM133087970

Questions -

Q1. Reca Corporation manufactures a single product and has the following cost structure:

Variable Cost/Unit		Fixed Costs
Production	$5	Production	$32,000
Selling and Administrative	3	Selling and Administrative	16,000

During the year, 8,000 units were produced, and 7,800 units were sold.

a. How much is the carrying value of ending inventory under variable costing?

b. Under absorption costing, how much is the cost of goods sold?

Q2. Jana Company., which has only one product, provided the following data for June: Sales @ $74 per unit - $636,400

Variable Costs Per Unit	Fixed Costs
Direct Materials - $12	Factory Overhead - $176,000
Direct Labor - 32	Selling and Administrative - 8,600
Factory Overhead - 2
Selling and Administrative - 6

There are 200 Units of inventory remaining at the end of June.

a. How much are the unit product cost under variable and absorption costing approach?

b. How much is the contribution margin for the month under the variable costing approach?

c. How much is the gross margin for the month under the absorption costing approach?

d. How much is the period cost for the month under the variable costing approach?

e. How much is the period cost for the month under the absorption costing approach?

Q3. Jomarie Corporation is a medium-sized manufacturer of lamps. During the year a new line called "Convertible" was made available to Jomarie Corporation customers. The break-even point for sales of Convertible is $200,000 with a contribution margin of 40%. Assuming that the profit for the Convertible line during the year amounted to $100,000, how much is the total sales during the year?