Answer (C) is correct . Using variable costing, the unit cost of ending inventory is $25 ($12 direct materials + $9 direct labor + $4 variable overhead ). Given beginning inventory is 35000 production this period is 130000 so the ending units is 35000+130000-125000=40000 so the value of ending units is 40000*25=1000000
Answer (A) is incorrect because Ending inventory was $1,200,000. Answer (B) is incorrect because Ending inventory was $1,200,000. Answer (D) is incorrect because Ending inventory was $1,200,000.
|