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Steele Corporation has the following information for January, February, and March: January February March Units produced 10,000 10,000 10,000 Units sold 7,000 8,500 10,500 Production

Steele Corporation has the following information for January, February, and March:

January

February

March

Units produced

10,000

10,000

10,000

Units sold

7,000

8,500

10,500

Production costs per unit (based on 10,000 units) are as follows:

Direct materials

$12

Direct labor

8

Variable factory overhead

6

Fixed factory overhead

4

Variable selling and admin. expenses

10

Fixed selling and admin. expenses

4

There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three months.

What is the January ending inventory for Steele Corporation using the variable costing method?

a.

$108,000

b.

$260,000

c.

$78,000

d.

$90,000

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