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:

Contractor

An individual or firm that agrees to provide materials or perform services for another party under the terms of a contract.

Claiming Compensation

The act of seeking monetary reimbursement for harm, loss, or damages suffered because of another's actions or negligence.

Recover Damages

Refers to the obtainment of financial compensation for harm or loss suffered, through a legal process.

Reasonable Effort

A degree of effort that a prudent person would consider sufficient under given circumstances.