Hi-Tech Manufactures Basic Cell Phones for Cell Phone Service Providers

Multiple Choice

Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:
Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.
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What is the value of the ending inventory on March 31, 2012 using variable costing?

A) $30,000
B) $33,000
C) $31,000
D) $32,500