A company produces a single product. Variable production costs are $12.90 per unit and variable selling and

Fantastic news! We've Found the answer you've been seeking!

Question:

A company produces a single product. Variable production costs are $12.90 per unit and variable selling and administrative expenses are $3.90 per unit. Fixed manufacturing overhead totals $45,000 and fixed selling and administration expenses total $49,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 4,000 units, the dollar value of the ending inventory under absorption costing would be:

a.$11,450

b.$6,450

c.$8,400

d.$12,075