The value of Mabotsanas Limiteds closing inventory for October 2019 using the absorption costing method is: (2)

a. R240 000

b. R360 000

c. R600 000

d. R420 000

The following information was taken from the production records of Mabotsana Limited for October 2019:

Opening inventory 1 000 units

Closing inventory 6 000 units

Direct labour cost per unit R40

Direct material cost per unit R20

Variable manufacturing overhead costs per unit R10

Fixed manufacturing overhead costs per unit R30

Variable selling and administrative costs per unit R6

Fixed selling and administrative costs per unit R14