3.

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

Units produced this year		30,000	units
Units sold this year		18,000	units
Direct materials	$	14	per unit
Direct labor	$	16	per unit
Variable overhead	$	90,000	in total
Fixed overhead	$	150,000	in total

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

4.Chance, Inc. sold 5,000 units of its product at a price of $172 per unit. Total variable cost per unit is $131, consisting of $92 in variable production cost and $39 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.