1. Units in beginning inventory= 0

   Units produced= 20,000

   Units sold =19,000

   Variable Cost per unit:

   Direct materials $100

   Direct labor $30

   Variable MOH $20

   Variable Selling and Administrative$10

   Fixed Costs:

   Fixed MOH $400,000

   Fixed Selling and Administrative$100,000

   What is the unit product cost under absorption costing?

   		a. $160
   		b. $170
   		c. $180
   		d. $185

2. Units in beginning inventory 0

Units produced 20,000

Units sold 19,000

Variable Cost per unit:

Direct materials $100

Direct labor 30

Variable MOH 20

Variable Selling and Administrative 10

Fixed Costs:

Fixed MOH $400,000

Fixed Selling and Administrative 100,000

What is the unit product cost under variable costing?

		a. $150
		b. $160
		c. $170
		d. $180

3. Units in beginning inventory 0

Units produced 20,000

Units sold 19,000

Variable Cost per unit:

Direct materials $100

Direct labor 30

Variable MOH 20

Variable Selling and Administrative 10

Fixed Costs:

Fixed MOH $400,000

Fixed Selling and Administrative 100,000

What is the cost of ending inventory under absorption costing?

		a. $160,000
		b. $170,000
		c. $180,000
		d. $185,000

4. Units in beginning inventory 0

Units produced 20,000

Units sold 19,000

Variable Cost per unit:

Direct materials $100

Direct labor 30

Variable MOH 20

Variable Selling and Administrative 10

Fixed Costs:

Fixed MOH $400,000

Fixed Selling and Administrative 100,000

Which costing method will report a higher net income?

		a. Absorption costing
		b. Variable costing