Lorillard Corporation Has the Following Information for April, May, and June

question 1

Multiple Choice

Lorillard Corporation has the following information for April, May, and June 2014: There were no beginning inventories for April 2014, and all units were sold for $50. Costs are stable over the three months.
What is the May ending inventory cost for Lorillard Corporation using the absorption costing method?

• A) $44,375.00
• B) $35,625.00
• C) $70,000.00
• D) $210,937.50

---

Definitions:

Canadian Customers

Individuals or entities in Canada who purchase goods or services, reflecting the consumer market in that geographical area.

Japanese Yen

The official currency of Japan, known for being one of the most traded currencies in the world.

Indian Depositors

Individuals or entities in India who place their money in financial institutions for saving or investment purposes, contributing to the financial system's liquidity.

Depreciate

To decrease in value over time, often used in reference to tangible assets like machinery or vehicles due to wear and tear or obsolescence.