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.