Lulu Corporation has the following information for April 2022: Production costs per unit (based on 12,500 units) are as follows: Direct materials $15 Direct labour 10

Variable factory overhead 7.50 Fixed factory overhead 5

Variable selling and admin. expenses 12.50 Fixed selling and admin. expenses 5 There were no beginning inventories for April 2022, and all units were sold at $50 per unit. What is the April ending inventory cost for Lulu Corporation using the absorption costing method?

1.$140,625

2.$187,500

3.$162,500

4.$121,875