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The Following Information Pertains to Mayberry Ltd What Is the Value of the Ending Inventory Using the inventory

Question 6

Multiple Choice

The following information pertains to Mayberry Ltd.:  Beginning inventory 1,000 units  Ending inventory 6,000 units  Direct labour per unit ±40 Direct materials per unit 20 Variable overhead per unit 10 Fixed overhead per unit 30 Variable selling and admin. costs per unit 6 Fixed selling and admin. costs per unit 14\begin{array}{lr}\text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \pm 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and admin. costs per unit } & 6 \\\text { Fixed selling and admin. costs per unit } & 14\end{array} What is the value of the ending inventory using the variable costing method?


A) £240,000
B) £360,000
C) £350,000
D) £420,000

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