acc205 assignment
Matric No: 14/66mc188 Serial No: F176 1. True 2. False 3. True 4. True 5. False 6. True 7. False 8. B 9. B 10. A 11. A 12. B 13. Difference between absorption costing net income and variable costing net income = Change in inventory in units × Unit fixed manufacturing overhead = (27,000 − 22,000) × 3 = 5,000 × 3 = #15,000 Net income under absorption costing = #40,000 + #15,000 = #55,000 14. Direct material + Direct labor + Variable manufacturing overhead = Variable unit product cost = #9 – #1 = #8 Unit fixed manufacturing overhead = #11 – #8 = #3 Difference in net income between methods ÷ Unit fixed manufacturing overhead = (#3,600) ÷ #3 per unit = (1,200) units Units produced = Units sold + Change in inventory = 10,000 + (1,200) = 8,800 15. Unit fixed manufacturing overhead = Difference in net income ÷ Change in inventory = (#44,000 – #38,000) ÷ (40,000 – 37,000) = #6,000 ÷ 3,000 = #2 Variable costing net operating income = Absorption costing net income − Difference in...