Xi Manufacturing,which Began Operations on January 1 of the Current

Essay

Xi Manufacturing,which began operations on January 1 of the current year,produces an industrial scraper that sells for $325 per unit.Information related to the current year's activities follows.
A.Compute the company's average unit cost of production.
B.Determine the cost of the December 31 finished-goods inventory.
C.Compute the company's cost of goods sold.
D.1.No change.Direct labor is a variable cost,and the cost per unit will remain constant.
2.No change.Despite the increase in the number of units produced,this is a fixed cost,which remains the same in total.
D.If next year's production increases to 23,000 units and general cost behavior patterns do not change,what is the likely effect on:
1.The direct-labor cost of $35 per unit? Why?
2.The fixed manufacturing overhead cost of $400,000? Why?