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

Units produced this year	26,000 units
Units sold this year	15,600 units
Direct materials	$10 per unit
Direct labor	$12 per unit
Variable overhead	$78,000 in total
Fixed overhead	$130,000 in total

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

$312,000

$780,000

$468,000

$260,000

$390,000

4.

value: 2.94 points

Required information

Given Advanced Company's data, and the knowledge that the product is sold for $51 per unit and operating expenses are $210,000, compute the net income under absorption costing.

$52,000

$65,600

$91,000

$117,600

$195,600

5.

value: 2.98 points

Required information

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

$312,000

$780,000

$468,000

$260,000

$390,000