1) Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year	35,000 units
Units sold this year	21,000 units
Direct materials	$19 per unit
Direct labor	$21 per unit
Variable overhead	$105,000 in total
Fixed overhead	$175,000 in total

Given Advanced Company's data, compute cost per unit of finished goods under variable costing.

$40.00

$45.00

$41.88

$43.00

$48.00

2) Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.

$40.00

$53.33

$45.00

$43.00

$48.00

3) Given Advanced Company's data, compute cost of finished goods in inventory under variable costing.

$672,000

$1,680,000

$1,008,000

$602,000

$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.

$70,000

$113,000

$210,700

$183,000

$288,000

5) Given Advanced Company's data, compute cost of finished goods in inventory under absorption costing.

$672,000

$1,680,000

$1,008,000

$602,000

$903,000