Meow Foods Had 2,000 25-Pound Bags of Cat Food in Beginning

Multiple Choice

Meow Foods had 2,000 25-pound bags of cat food in beginning inventory. During 2014, the company manufactured 16,000 bags and sold 15,000 units. Each bag of food is sold for $17. Assume the same unit costs in all years. The company experienced the following costs:
Direct materials $4.50 per unit
Direct labor $2.10 per unit
Variable manufacturing overhead $1.90 per unit
Variable selling $1.00 per unit
Fixed manufacturing overhead $48,000
Fixed selling $24,000
Fixed administrative $30,000
If the company uses variable costing, at what amount is the ending inventory for the year valued?

A) $25,500
B) $28,500
C) $34,500
D) $9,000