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 2017, 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: $\begin{array}{lr}\text { Direct materials } & \$ 4.50 \text { per unit } \\\text { Direct labor } & \$ 2.10 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.90 \text { per unit } \\\text { Variable selling } & \$ 1.00 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 48,000 \\\text { Fixed selling } & \$ 24,000 \\\text { Fixed administrative } & \$ 30,000\end{array}$ 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