Young Corporation has the following standard costs associated with the manufacture and sale of one of its products for 2023: Direct material $3.00 per unit Direct labor 2.50 per unit Variable manufacturing overhead 1.80 per unit Fixed manufacturing overhead 4.00 per unit (based on an estimate of $200,000 and denominator units of 50,000). Variable selling expenses .25 per unit sold Fixed SG&A expense $75,000 per year During its first year of operations Young manufactured 50,000 units and sold 48,000.

Young Corporation has the following standard costs associated with the manufacture and sale of one of its products for 2023:

Direct material	$3.00 per unit
Direct labor	2.50 per unit
Variable manufacturing overhead	1.80 per unit
Fixed manufacturing overhead	4.00 per unit (based on an estimate of $200,000 and denominator units of 50,000).
Variable selling expenses	.25 per unit sold
Fixed SG&A expense	$75,000 per year
During its first year of operations Young manufactured 50,000 units and sold 48,000. The selling price per unit was $25. All costs were equal to standard.

4. Under absorption costing, the cost of the ending inventory is equal to

a.	$20,600
b.	$21,600
c.	$22,600
d.	$23,600

5. Under direct costing, the cost of the ending inventory is equal to

a.	$15,600
b.	$14,600
c.	$13,600
d.	$12,600

6. Based on direct costing, net income as of 12/31/2023 was

a.	$570,600.
b.	$560,000.
c.	$562,600.
d.	$547,500.

7. Based on absorption costing, net income as of 12/31/2023 was

a.	$570,600.
b.	$560,000.
c.	$562,600.
d.	$547,500.