Exhibit 20-6 Vilas Company Manufactured 80,000 Units During July but Only

Multiple Choice

Exhibit 20-6 Vilas Company manufactured 80,000 units during July but only sold 65,000 of these units at a price of $20 each. At the beginning of the month, Vilas had 5,000 units in finished goods inventory. The following unit costs are known for June and July:
Vilas Company uses the first-in first-out (FIFO) method.
Refer to Exhibit 20-6. What is net income for July using the variable costing method?

A) $205,000
B) $85,000
C) $215,000
D) $125,000