Use the Following Information for Questions

question 12

Multiple Choice

Use the following information for questions
Sprinkle Co. sells its product for $60 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory) . Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses.
-Ending inventory under variable costing is

• A)$270,000.
• B)$390,000.
• C)$600,000.
• D)$1,350,000.

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