During Its First Year of Operations,the McCormick Company Incurred the Following

Multiple Choice

During its first year of operations,the McCormick Company incurred the following manufacturing costs: Direct materials,$5 per unit,Direct labor,$3 per unit,Variable overhead,$4 per unit,and Fixed overhead,$250,000.The company produced 25,000 units,and sold 20,000 units,leaving 5,000 units in inventory at year-end.What is the value of ending inventory under variable costing?

A) $60,000
B) $110,000
C) $50,000
D) $250,000
E) $310,000