Last Year, Fabre Company Produced 20,000 Units and Sold 18,000

Multiple Choice

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:
Fixed factory overhead is applied based on expected production. Last year, Fabre expected to produce 20,000 units.
-Refer to Figure 8-1. Assuming that beginning inventory was zero, what is the value of ending inventory under absorption costing?

A) $5,480
B) $4,500
C) $10,900
D) $12,600
E) $5,750