Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The
following per unit data apply for sales to regular customers:
Direct materials $50
Direct manufacturing labor 5
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing costs
14
10_()
$79
The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000
bicycles. What is the per unit cost of producing 2,000 bicycles?
A) $79 per unit
B) $158 per unit
C) $74 per unit
D) $134 per unit
Answer questions 8 and 9 using the information below:
Pederson Company reported the following:
Manufacturing costs $2,000,000
Units manufactured ,50,000
Units sold ,47,000 units sold for $75 per unit
Beginning inventory 0 units
What is the average manufacturing cost per unit?
A) $40.00
B) $42.55
C) $0.025
D) $75.00
What is the amount of ending finished goods inventory?
A) $1,880,000
B) $120,000
C) $225,000
D) $105,000
Which of the following formulas determine cost of goods sold in a merchandising
entity?
A) Beginning inventory + Purchases + Ending inventory = Cost of goods sold
B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold
C) Beginning inventory - Purchases + Ending inventory = Cost of goods sold
D) Beginning inventory - Ending inventory - Purchases = Cost of goods sold
5 Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:
Direct materials
$50 Direct manufacturing labor
Variable manufacturing overhead 14 Fixed manufacturing overhead 10 Total manufacturing costs $79
The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles? A) $79 per unit B) $158 per unit C) $74 per unit D)$134 per unit
Answer questions 8 and 9 using the information below:
Pederson Company reported the following:
Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per unit Beginning inventory 0 units
6) What is the average manufacturing cost per unit? A) S40.00 B) $42.55 C) $0.025 D) $75.00
7) What is the amount of ending finished goods inventory? A) $1,880,000 B)S120.000 C) $225,000 D) $105,000
8 Which of the following formulas determine cost of goods sold in a merchandising entity? A) Beginning inventory + Purchases + Ending inventory = Cost of goods sold B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold C) Beginning inventory - Purchases + Ending inventory = Cost of goods sold D) Beginning inventory - Ending inventory - Purchases = Cost of goods sold
