Advanced Company reports the following information for the current year. All beg

Question

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

Units produced this year 25,000 units

Units sold this year 15,000 units

Direct materials $9 per unit

Direct labor $11 per unit

Variable overhead $75,000 in total

Fixed overhead $137,500 in total

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

A. $285,000

B. $712,500

C. $427,500

D. $230,000

E. $345,000

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

A. $285,000

B. $712,500

C. $427,500

D. $230,000

E. $345,000

95. Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under absorption costing.

A. $55,000

B. $67,500

C. $80,500

D. $122,500

E. $205,000

96. Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under variable costing.

A. $55,000

B. $67,500

C. $80,500

D. $122,500

E. $205,000

Explanation / Answer

93) Cost of finished goods option C

cost of finished goods = 15000*28.5   = $427,500

94)unit cost = $23

cost of finished goods = 15000*23 = $345,000

option E

95) Net income under absortion costing option D

96 ) option B

unit product cost Direct materials $9 Direct labor $11 Variable manufacturing overhead 75,000/25,000 $ 3 Fixed manufacturing overhead 137,500/25,000 $5.5 Total unit cost $28.50

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.