1) Advanced Company reports the following information for the current year. All
ID: 2488893 • Letter: 1
Question
1) Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Given Advanced Company's data, compute cost per unit of finished goods under variable costing.
$40.00
$45.00
$41.88
$43.00
$48.00
2) Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.
$40.00
$53.33
$45.00
$43.00
$48.00
3) Given Advanced Company's data, compute cost of finished goods in inventory under variable costing.
$672,000
$1,680,000
$1,008,000
$602,000
$903,000
4) Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000, compute the net income under absorption costing.
$70,000
$113,000
$210,700
$183,000
$288,000
5) Given Advanced Company's data, compute cost of finished goods in inventory under absorption costing.
$672,000
$1,680,000
$1,008,000
$602,000
$903,000
1) Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Explanation / Answer
1) variable overhead per unit = $105000 /35000 units = $3 /unit
2)
3) Units in finished goods = Number of units produced - units sold = 35000-21000 = 14000
Cost of finished goods under variable costing
= variable cost of production per unit x number of units in finished goods
= $43 / unit x 14000 = $602000
4)
Cost of goods sold
= cost of production - cost of finished goods
= $1680000 - $602000
= $1078000
5)
Cost of finshed goods in inventory under absorption costing
= Cost per unit under absorption costing x Number of units in closing inventory
= $ 48 x 14000
= $672000
Variable cost of procudction per unit ($) Dierect meatirials 19.00 Direct labour 21.00 Variable overhead 3.00 Variable cost of production per unit 43.00Related Questions
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