The Following Information Pertains to Cumberland Corporation What Is the Value of Ending Inventory Using the Absorption

question 94

Multiple Choice

The following information pertains to Cumberland Corporation: $$\begin{array} { l r } \text { Beginning inventory } & 0 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labor per unit } & \$ 20 \\\text { Direct materials per unit } & 16 \\\text { Variable overhead per unit } & 4 \\\text { Fixed overhead per unit } & 10 \\\text { Variable selling costs per unit } & 12 \\\text { Fixed selling costs per unit } & 16\end{array}$$ What is the value of ending inventory using the absorption costing method?

• A)$410,000
• B)$300,000
• C)$600,000
• D)$216,000

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