14)

The Southern Corporation manufactures a single product and has the following cost structure:

Variable costs per unit:
Production	$	44
Selling and administrative	$	14
Fixed costs per year:
Production	$	209,790
Selling and administrative	$	184,620

Last year, 7,770 units were produced and 7,670 units were sold. There was no beginning inventory.

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

Multiple Choice

• A) $2,700 less than under absorption costing.

• B) the same as absorption costing.

• C) $7,670 greater than under absorption costing.

• D) $7,670 less than under absorption costing.