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 January ending inventory for Steele Corporation using the variable costing method?
A) $260,000
B) $78,000
C) $108,000
D) $90,000

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 January ending inventory for Steele Corporation using the variable costing method?
A) $260,000 
B) $78,000 
C) $108,000 
D) $90,000

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
 
 11ea8a4c_490e_de5a_a0e6_bb43bde2ab2e_TB5550_00 4,000 × $26 = $104,000

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