5. The company sold 11,500 units during the year ($1,495,000 = $130). Since 160 of the units came from finished-goods inventory (1,350 - 1,190), the company would have manufactured 11,340 units (11,500-160). - Homework: PROBLEM 2-40 Problem 2-40 Anarcal Statement Elements Cost Behavior LO 2.5,2-6, 2-3 2. Net com: 5188,000 R Mason Corporation began operations at the beginning of the current year. One of the company's products, a refrigeration clement, sells for $185 per unit. Information related to the current year's activities follows Vatable costs per un Dend to $20 Dred labor 37 Manufacturing wheed Annual fed contes Nantucturing wheel $600.000 Sailing and administrative Production and Sales achty Production 950.000 24000 20.000 Mason carries its finished goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end Required 1. Determine the cost of the December 31 finished-goods imentary 2. Compute Mason's net income for the current year ended December 31. 3. If nast year's production decreases to 23.00 units and general cont behavior patterns do not change, what is the likely effect on 4. The direct-labor cost of $37 per unit? Why? b. The fixed manufacturing overhead cost of $600.000? Why? The fixed selling and administrative cost of S960,000? Why? & The average unit cont of production? Why