There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three months.

What is the May ending inventory cost for Lorillard Corporation using the absorption costing method?

Lorillard Corporation has the following information for April, May, and June 2016 Apil May une 12,500 12500 12500 Units produced Units sold S.750 10625 13.125 Production costs per unit (based on 12,500 units) are as follows: Direct materials $15.00 Direct labor 10.00 7.50 Variable factory overhead 5.00 Fixed factory overhead Variable selling and admin. expenses 12.50 Fixed selling and admin. expenses 5.00 There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three months. What is the May ending inventory cost for Lorillard Corporation using the absorption costing method? $44,375.00 $35,625.00 $70,000.00 o $210,937.50