During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $390,000. The company produced 39,000 units, and sold 30,000 units, leaving 9,000 units in inventory at year-end. What is the value of ending inventory under variable costing?

Multiple Choice

• $90,000

• $189,000

• $390,000

• $99,000

• $489,000

  Brush Industries reports the following information for May:

  Sales	$	965,000
  Fixed cost of goods sold		113,000
  Variable cost of goods sold		263,000
  Fixed selling and administrative costs		113,000
  Variable selling and administrative costs		138,000

  Calculate the operating income for May under absorption costing.

  Multiple Choice

• $702,000

• $589,000

• $376,000

• $564,000

• $338,000