The following information pertains to Mayberry Corporation:

-Refer to Figure 8-4. What is the value of the ending inventory using the absorption costing method?
A) $240,000
B) $360,000
C) $600,000
D) $420,000

Question

The following information pertains to Mayberry Corporation:
 
-Refer to Figure 8-4. What is the value of the ending inventory using the absorption costing method?
A) $240,000 
B) $360,000 
C) $600,000 
D) $420,000

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs (fixed and variable) in the cost of inventory. The ending inventory value is calculated by multiplying the number of units in ending inventory by the cost per unit under absorption costing.

The Following Information Pertains to Mayberry Corporation