Question - Data for a firm's first year of operation is given below. The firm uses absorption costing.
Units produced (no work in process) 6000
Units sold 5000
Units in ending inventory of finished goods 1000
Sales price for each unit. $75
Variable manufacturing costs for each unit $30
Variable selling and admin, expenses for each unit $16
Fixed manufacturing costs for the year $90,000
Fixed selling and admin. Expenses for the year $65,000
The cost of the goods sold for the year is:
(A) $270,000
(B) $225,000
(C) $150,000
(D) $450,000