Expensive Text Company manufactures Cost Accounting textbooks for advanced accounting classes. The supervisor has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs.

	January, 2022
Finished Goods Beginning inventory	0
Production	2,500
Sales	2,300

Other information:
Selling price	$240.00
Standard variable DM cost/unit	$15.00
Standard variable DML cost/unit	$20.00
Standard variable VMOH cost/unit	$10.00
Standard variable market/admin. cost/unit sold	$40.00
Standard fixed manufacturing overhead cost/month	$120,000
Standard fixed market/admin. cost/month	$120,000
Budgeted denominator level per month (output units)	3,000

There were no beginning or ending inventories of materials or work-in-process.

Required: In the space provided below or on the provided Excel spreadsheet, do the following:

1) Using absorption costing, determine the inventory cost per unit and the ending inventory value for January. (3 marks each. 1 mark for correct answer and 2 marks for showing calculations).

2) Using variable costing, determine the inventory cost per unit and the ending inventory value for January. (3 marks each. 1 mark for correct answer and 2 marks for showing calculations)

3) Using throughput costing, determine the inventory cost per unit and the ending inventory value for January. (3 marks each. 1 mark for correct answer and 2 marks for showing calculations)

4) Using the variable breakeven formula, calculate Expensive Text Company's number of units required to have an operating income of $225,000. (3 marks each. 1 mark for correct answer and 2 marks for showing calculations)

5) Using the absorption breakeven formula, calculate Expensive Text Company's number of units required to have an operating income of $205,000. (3 marks each. 1 mark for correct answer and 2 marks for showing calculations)