Last Year, Richmon Company Produced 10,000 Units and Sold 6,000

Multiple Choice

Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20.Costs for the last year were as follows:


Fixed factory overhead is applied based on expected production.Last year, Richmon expected to produce 10,000 units.Assuming that beginning inventory was zero, what is the value of ending inventory under absorption costing? (Note: Round answers to the nearest dollar.)

A) $50,000
B) $38,000
C) $46,400
D) $10,000
E) $31,000