Information from Peterson Company’s records for the year ended December 31 is available as follows:
|
Net sales |
$1,400,000 |
|
|
Cost of goods manufactured: |
Variable |
630,000 |
|
Fixed |
315,000 |
|
|
Operating expenses: |
Variable |
98,000 |
|
Fixed |
140,000 |
|
|
Units manufactured |
70,000 |
|
|
Units sold |
60,000 |
|
|
Finished goods inventory, January 1 |
None |
There were no work-in-process inventories at the beginning and end of the year. What would be Peterson’s finished goods inventory cost at December 31, under the variable (direct) costing Method?
a. $90,000
b. $104,000
c. $105,000
d. $135,000
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