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Lorillard Corporation has the following information for April, May, and June of the current year: Units produced Units sold April May June 12,500 12,500

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Lorillard Corporation has the following information for April, May, and June of the current year: Units produced Units sold April May June 12,500 12,500 12,500 8,750 10,625 13,125 Production costs per unit (based on 12,500 units) are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling and admin. expenses Fixed selling and admin. expenses $15.00 10.00 7.50 5.00 12.50 5.00 There were no beginning inventories for April of the current year, and all units were sold for $50. Costs are stable over the three months. What is the April ending inventory for Lorillard Corporation using the variable-costing method? a. $312,500 b. $140,000) c. $187,500) d. $121,875

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