Use the Following Information for Questions

Multiple Choice

Use the following information for questions
Sprinkle Co. sells its product for $60 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory) . Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses.
-Ending inventory under variable costing is

A) $270,000.
B) $390,000.
C) $600,000.
D) $1,350,000.