Question: Airon Co. sells its product for $40 per unit. During the year, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labor $3, variable overhead $1, and variable selling & administrative expenses $0.50. Fixed costs are: $240,000 manufacturing overhead, and $30,000 selling and administrative expenses. Ending inventory under absorption costing is A. $130,000 B. $138,000 C. $140,000 D. $149,000