Yankee Corporation Manufactures a Single Product

Multiple Choice

Yankee Corporation manufactures a single product. The company has the following cost structure: Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

A) the same as under absorption costing
B) $1,500 less than under absorption costing
C) $2,000 higher than under absorption costing
D) $2,000 less than under absorption costing