Sanders Company has the following information for last year
There were no beginning inventories.

- 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.

- 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

SUPPORTING CALCULATIONS:
[$52 + ($240,000 / 12,000)] × (12,000 - 7,000) = $360,000

Sanders Company Has the Following Information for Last Year