Stephen Company Produces a Single Product

question 90

Multiple Choice

Stephen Company produces a single product.Last year,the company had 20,000 units in its ending inventory.During the year,Stephen's variable production costs were $12 per unit.The fixed manufacturing overhead cost was $8 per unit in the beginning inventory.The company's net operating income for the year was $9,600 higher under variable costing than it was under absorption costing.The company uses a last-in-first-out (LIFO) inventory flow assumption.Given these facts,the number of units of product in the beginning inventory last year must have been:

• A)21,200
• B)19,200
• C)18,800
• D)19,520