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Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: $3.50 per t-shirt Production
Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:
| Selling price | $15.00 per t-shirt |
| Variable costs: | $3.50 per t-shirt |
| Production (manufacturing costs) | ||
| Selling & administration | $1.00 per t-shirt |
| Fixed costs: | $1,000,000 per year |
| Production (manufacturing costs) | ||
| Selling & administration | $2,000,000 per year |
During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the inventory under full costing at December 31, 2014?
| A. | $225,000 | |
| B. | $175,000 | |
| C. | $275,000 | |
| D. | $300,000 |
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