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Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows: Direct materials
Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:
Direct materials | $25,000 |
Direct labor | 35,000 |
Variable factory overhead | 12,000 |
Fixed factory overhead | 37,000 |
Variable selling expense | 9,000 |
Fixed selling expense | 7,500 |
Fixed administrative expense | 15,500 |
Assuming that beginning inventory was zero, what is the value of ending inventory under variable costing?
a.$5,000
b.$3,300
c.$3,720
d.$7,200
e.$2,500
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