Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?

A company manufactures dining tables.

The variable costs per unit are as follows.

Other costs are fixed and include advertising costs of $45,000 per year administrative costs of $55,000 annually and fixed manufacturing overhead of S250.000 per year based on Budgeted production of 10.000 dining tables There was no beginning inventory During the prior year, a total of 10.000 dining tables were manufactured, with 9 000 dining tables sold at $100 each.

Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?
A . $45,000.
B. $70,000.
C. $80,000.
D. $100,000.

View Answer

Answer: B