During its first year of operations, the McCormick Company incurred the following manufacturing costs:

Direct materials	$ 5	per unit
Direct labor	$ 3	per unit
Variable overhead	$ 4	per unit
Fixed overhead	$ 250,000	per year

The company produced 25,000 units, and sold 20,000 units, leaving 5,000 units in inventory at year-end. What is the value of ending inventory under variable costing?

Multiple Choice

• $60,000

• $110,000

• $50,000

• $250,000

• $310,000