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3.

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

Units produced this year	100,000 units
Units sold this year	60,000 units
Direct materials	$ 8.50 per unit
Direct labor	$ 9.50 per unit
Variable overhead	$ 650,000 in total
Fixed overhead	$ 850,000 in total

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

rev: 11_12_2013_QC_39733

$720,000

$1,320,000

$980,000

$984,000

$1,153,200

4.

Assume a company sells a given product for $119 per unit. How many units must be sold to break-even if variable selling costs are $23 per unit, variable production costs are $34 per unit, and total fixed costs are $1,119,100?

10,174 units.

13,166 units.

18,050 units.

9,404 units.

11,657 units.

5.

Shore Company reports the following information regarding its production cost.

Units produced	33,500 units
Direct labor	$ 25.75 per unit
Direct materials	$ 26.75 per unit
Variable overhead	$ 519,250 in total
Fixed overhead	$ 117,250 in total

Compute production cost per unit under absorption costing.

$25.75

$52.50

$68.00

$71.50

$15.50