Crystal Company produces a single product. The company's variable costing income statement for the month of May appears below: The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

The dollar value of the company's inventory on May 31 under the absorption costing method would be: A.$120,000 B.$90,000 C.$75,000 D.$60,000

$900,000 Crystal Company Income Statement For the month ended May 31 Sales S(10 per unit) Variable expenses: Variable cost of goods sold. Variable selling expense Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Total fixed expenses.... Net operating income 450.000 90.000 540.000 360,000 240,000 90.000 330.000 $ 30,000