Octagonal Company Has the Following Information for 2018 There Were No Beginning Inventories

Multiple Choice

Octagonal Company has the following information for 2018: $\begin{array}{lr}\text { Selling price } & \$ 150 \text { per unit } \\\text { Variable production costs } & \$ 40 \text { per unit produced } \\\text { Variable selling and admin. expenses } & \$ 16 \text { per unit sold } \\\text { Fixed production costs } & \$ 200,000 \\\text { Fixed selling and admin. expenses } & \$ 140,000 \\\text { Units produced } & 10,000 \text { units } \\\text { Units sold } & 8,000 \text { units }\end{array}$ There were no beginning inventories.
What is the ending inventory for Eastwood using the absorption costing method?

A) $300,000
B) $180,000
C) $120,000
D) $80,000