Sanders Company has the following information for last year:
There were no beginning inventories.
-Refer to Figure 8-5. What is the value of ending inventory for Sanders using the absorption costing method?
A) $360,000
B) $280,000
C) $220,000
D) $380,000

Question

Sanders Company has the following information for last year:
  There were no beginning inventories.
-Refer to Figure 8-5. What is the value of ending inventory for Sanders using the absorption costing method?
A) $360,000 
B) $280,000 
C) $220,000 
D) $380,000

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs (fixed and variable) in the cost of a product. Without the figure, we assume the correct choice is based on typical absorption costing calculations.

Sanders Company Has the Following Information for Last Year