Stephen Company Produces a Single Product

Multiple Choice

Stephen Company produces a single product.Last year,the company had 20,000 units in its ending inventory.During the year,Stephen's variable production costs were $12 per unit.The fixed manufacturing overhead cost was $8 per unit in the beginning inventory.The company's net operating income for the year was $9,600 higher under variable costing than it was under absorption costing.The company uses a last-in-first-out (LIFO) inventory flow assumption.Given these facts,the number of units of product in the beginning inventory last year must have been:

A) 21,200
B) 19,200
C) 18,800
D) 19,520