The Following Information Pertains to Stark Corporation -Refer to the Figure

question 41

Multiple Choice

The following information pertains to Stark Corporation:
$\begin{array}{lr}\text { Beginning inventory } & 0 \text { units } \\\text { Ending inventory } & 5,000 \text { units } \\\text { Direct labour per unit } & \$ 20 \\\text { Direct materials per unit } & 16 \\\text { Variable overhead per unit } & 4 \\\text { Fixed overhead per unit } & 10 \\\text { Variable selling costs per unit } & 12 \\\text { Fixed selling costs per unit } & 16\end{array}$
-Refer to the figure.What is the value of ending inventory using the absorption costing method?

• A)$200,000
• B)$250,000
• C)$310,000
• D)$390,000

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Definitions:

Vaccination

A medical intervention that introduces a substance to stimulate the body's immune response against disease.

Producer Surplus

The discrepancy between what sellers are prepared to take for a product or service and the actual payment they get in the marketplace.

Efficiency Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.

Franchising

A business model that allows individuals or entities to operate a portion of a larger company's brand or system in exchange for fees and adherence to the company's policies.