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

Units produced this year36,000unitsUnits sold this year21,600unitsDirect materials$20per unitDirect labor$22per unitVariable overhead$3per unitFixed overhead$180,000in total

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

Multiple Choice

• $720,000
• $1,800,000
• $1,080,000
• $648,000
• $972,000