- "Calculating Total Period Cost: Variable Costing Analysis for

20. 21. Jam 16. Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 106 Units in beginning inventory Units produced 2,600 Units sold 2,200 Units in ending inventory 400 Variable costs per unit: Direct materials 46 Direct labor 28 Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead 33,800 Fixed selling and administrative expense 8,800 What is the total period cost for the month under variable costing? A. $42,600 B. $33,800 C. $24,200 D. $58,000 17. When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be: A. less than net operating income reported under absorption costing. B. greater than net operating income reported under absorption costing. C. equal to net operating income reported under absorption costing. D. higher or lower because no generalization can be made. 18. The production budget is typically prepared prior to the sales budget. 19. All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: 1 20ed January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March? A. $24,000 100 0/0 = 35% - 4590 B. $37,000 C. $41,000 - 20% D. $51,000