33) 33) Groovelex Inc. has collected the following data for the current year units units Beginning inventory Units produced Units sold Sale price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead variable selling and administrative costs Fixed selling and administrative costs 120 per unit $25 |per unit per unit S6 per unit 12,500 per year What is the unit product cost for the current year using absorption costing? D) $65 C) $70 B)#80 A) $55 34 34) For which of the tollowing decisions is absorption costing most appropriate? A) decisions related to controlling short-term costs B) decisions related to using the sales mix to maximize profitability C) decisions related to setting sales prices in the long run D) decisions related to increasing contribution margin 35) In its first year of business, Greenlam Inc. produced and sold 600 units If Greenlam uses variable 35) costing, A) its operating profit for the period will be lower than absorption costing B) its operating protit for the period will be higher than absorption costing C) its value of ending inventory reported in the balance sheet will be higher than absorption costing D) its operating profit will be the same under absorption costing 36) 36) Which of the following costing methods charges all the manufacturing costs to the products? B) variable costing D) contribution costing A) direct costing C) absorption costing 37) 37) Groovelex Inc. reports the following information: 550 units 500 units Units produced Units sold Sale price Direct materials 120 per unit $25 per unit $12 per unit 13 per unit 16,500 per year $6 per unit $12,500 per year Variable manufacturing overhead xed manufacturing overhead Variable selling and administrative costs xed selling and administrative costs There are no beginning inventories. What is the ending balance in finished goods inventory using absorption costing? D) $6,000 B) $8,500 C) $8,000 A) $4,000