Reference no: EM132537088

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

Question 1: Given Advanced Company's data, compute cost per unit of finished goods under variable costing.

A) $20.00.

B) $25.00.

C) $21.88.

D) $23.00.

E) $28.50.

Question 2: Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.

A) $20.00.

B) $34.17.

C) $25.32.

D) $23.00.

E) $28.50.