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Last year, Paper Inc produced 300,000 units and sold 280,000 units. Beginning inventory was zero. During the period the following costs were incurred:
Variable manufacturing overhead, per unit	$ 35
Fixed manufacturing overhead, per unit	$ 20
Direct labor, per unit	$ 50
Direct materials, per unit	$ 25

1. Compute the number of units in ending inventory. You MUST use a formula/calculation in the highlighted cell below for full credit. (2 pts)
	units

2. What is the per-unit product cost using absorption costing method. You MUST use a formula/calculation in the highlighted cell below for full credit. (2 pts)

3. Compute the dollar amount of the value of ending inventory using the absorption costing method. You MUST use a formula/calculation in the highlighted cell below for full credit. (2 pts)

4. What is the per-unit product cost using variable costing method? You MUST use a formula/calculation in the highlighted cell below for full credit. (2 pts)
	units

5. Compute the dollar amount of the value of ending inventory using the variable costing method. You MUST use a formula/calculation in the highlighted cell below for full credit. (2 pts)

6. If you were advising the accounting department on which method to use, which would you say? Explain your reasoning. (2 pts)

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