Carr Company produces a single product. During the past year, Carr manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows:
| Fixed manufacturing overhead |
$395,460 |
| Variable manufacturing overhead |
$258,570 |
| Direct labor |
$142,974 |
| Direct materials |
$234,234 |
| Sales totaled $1,207,650, variable selling expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There were no units in beginning inventory. Assume that direct labor is a variable cost. |
|
Under absorption costing, the ending inventory for the year would be valued at:
|
|
$214,628 |
|
$187,128 |
|
$248,628 |
|
$27,128 |