A Manufacturer Reports the Following Costs to Produce 10,000 Units

question 83

Multiple Choice

A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per unit, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000.
- Of the 10,000 units produced, 9,200 were sold, and 800 remain in inventory at year-end. Under variable costing, the value of the inventory is:

• A) $28,000.
• B) $12,800.
• C) $22,400.
• D) $18,400.
• E) $13,600.