Question 3(1 point)

Reference: 08-09

Crystal Company's variable costing income statement for the month of May appears below:

Crystal Company

Income Statement

For the month ended May 31

Sales ($10 per unit)$900,000Less: Variable costsVariable cost of goods sold:Beginning inventory$125,000Add: Variable cost of goods manufactured400,000Goods available for sale$525,000Less: Ending inventory75,000Variable cost of goods sold$450,000Variable selling expense90,000Total variable costs$540,000Contribution margin360,000Fixed costs:Fixed manufacturing overhead$240,000Fixed selling and administrative90,000Total fixed costs$330,000Operating income$30,000The company produces 80,000 units each month. Variable production costs per unit and total fixed costs have remained constant over the past several months.

What was the dollar value of the company's inventory on May 31 under the absorption costing method?

Question 3 options:

A)

$90,000.

B)

$60,000.

C)

$75,000.

D)

$120,000.