If Variable Cost of Goods Sold Totaled $90,000 for the Year

question 52

Multiple Choice

If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each) , the effect of the quantity factor on the change in variable cost of goods sold is:

• A) $10,800 decrease
• B) $10,800 increase
• C) $10,000 increase
• D) $10,000 decrease

Determine the cost of goods sold and ending inventory balances under a job-order costing system.

Recognize the impact of nonmanufacturing costs on financial statements.

Understand the accounting treatment of indirect materials and their inclusion in Manufacturing Overhead.

Understand the concept of operating income and how to calculate it.

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