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

Units produced this year 25,000 units

Units sold this year 15,000 units

Direct materials $9 per unit

Direct labor $11 per unit

Variable overhead $75,000 in total

Fixed overhead $137,500 in total

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

A. $285,000

B. $712,500

C. $427,500

D. $230,000

E. $345,000

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

A. $285,000

B. $712,500

C. $427,500

D. $230,000

E. $345,000

95. Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under absorption costing.

A. $55,000

B. $67,500

C. $80,500

D. $122,500

E. $205,000

96. Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under variable costing.

A. $55,000

B. $67,500

C. $80,500

D. $122,500

E. $205,000