Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows:
There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months.

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What is the February ending inventory for Steele Corporation using the absorption costing method?
A) $39,000
B) $45,000
C) $135,000
D) $300,000

Question

Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows:
 There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months.

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What is the February ending inventory for Steele Corporation using the absorption costing method?
A) $39,000 
B) $45,000 
C) $135,000 
D) $300,000

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
4,500 × ($12 + $8 + $6 + $4) = $135,000

Steele Corporation Has the Following Information for January, February, and March