Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 39,000 units
Units sold this year 23,400 units
Direct materials $23 per unit
Direct labor $25 per unit
Variable overhead $117,000 in total
Fixed overhead $195,000 in total
1) Given Advanced Company's data, compute cost per unit of finished goods under variable costing.
a. $40.00
b. $45.00
c. $41.88
d. $43.00
e. $48.00
2) Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.
a. $40.00
b. $53.33
c. $45.00
d. $43.00
e. $48.00
3) Given Advanced Company's data, compute cost of finished goods in inventory under variable costing.
a. $672,000
b. $1,680,000
c. $1,008,000
d. $602,000
e. $903,000
4) Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000, compute the net income under absorption costing.
a. $70,000
b. $113,000
c. $210,700
d. $183,000
e. $288,000
5) Given Advanced Company's data, compute cost of finished goods in inventory under absorption costing.
a. $672,000
b. $1,680,000
c. $1,008,000
d. $602,000
e. $903,000