The Southern Corporation Manufactures a Single Product and Has the Following

Multiple Choice

The Southern Corporation manufactures a single product and has the following cost structure:
Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.
-The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

A) the same as absorption costing.
B) $6,800 greater than under absorption costing.
C) $6,800 less than under absorption costing.
D) $4,000 less than under absorption costing.