TB MC Qu. 06-81 (Algo) During its first year of operations, the...

During its first year of operations, the McCormick Company incurred the following manufacturing costs:

Direct materials	$ 4	per unit
Direct labor	$ 2	per unit
Variable overhead	$ 3	per unit
Fixed overhead	$ 192,000	per year

The company produced 24,000 units, and sold 17,000 units, leaving 7,000 units in inventory at year-end. What is the value of ending inventory under absorption costing?

Multiple Choice

• $63,000

• $56,000

• $255,000

• $192,000

• $119,000