Reference no: EM133090706

Questions -

Q1. By producing 4,000 units and selling 3,600 units of its only product, Rina Corporation incurred the following costs: variable factory costs: $12; variable selling and administrative cost: $3; Fixed factory overhead: $36,000; fixed selling and administrative costs: $40,000. Assuming a beginning inventory of zero, how much is the ending inventory under absorption costing?

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. Gina Company sells a product for $5 per unit. The fixed expenses are $210,000 and the unit variable expenses are 60% of the selling price. How much sales would be necessary in order for Gina Company to realize a profit of 10% of sales?