DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

 

The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
The value of the company's inventory on August 31 under the absorption costing methodis: A. $27,000B. $42,000C. $36,000D. $47,000

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DeAnne Company Income Statement For the month ended August 31 Sales ($15 per un Variable expenses $600.000 Variable cost of goods sod. Variable selling expense Total variable expenses.... Contribution margin.. Fixed expenses 360,000 80000 440.000 160,000 Fixed manufacturing Fixed selling and administrative 105,000 35,000 140,000 20.000 Total fixed expenses Net operating income..