During the Past Year, Carr Company Manufactured 25,000 Units and Sold

question 125

Multiple Choice

During the past year, Carr Company manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows:
$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 180,000 \\\hline \text { Direct labour } & 120,000 \\\hline \text { Variable manufacturing overhead } & 210,000 \\\hline \text { Fixed manufacturing overhead } & 250,000 \\\hline\end{array}$ Total sales were $850,000, total variable selling expenses were $110,000, and total fixed selling and administrative expenses were $170,000. There were no units in beginning inventory. Assume that direct labour is a variable cost. Do not round intermediate calculations.

-Under absorption costing,what was the value of the ending inventory for the year?

• A) $152,000.
• B) $179,500.
• C) $213,500.
• D) $222,000.

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