Lorillard Corporation has the following information for April, May, and June 2016: April May June Units...

 

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Lorillard Corporation has the following information for April, May, and June 2016: April May June Units produced 12.500 12500 12500 Units sokl 8,750 10,625 13.125 Production costs per unit (based on 12,500 units) are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling and admin. expenses 12.50 Fixed selling and admin. expenses $15.00 10.00 7.50 5.00 5.00 There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three months. What is the May ending inventory cost for Lorillard Corporation using the absorption costing method? $44,375.00 $35,625.00 $70,000.00 $210,937.50 Lorillard Corporation has the following information for April, May, and June 2016: April May June Units produced 12.500 12500 12500 Units sokl 8,750 10,625 13.125 Production costs per unit (based on 12,500 units) are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling and admin. expenses 12.50 Fixed selling and admin. expenses $15.00 10.00 7.50 5.00 5.00 There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three months. What is the May ending inventory cost for Lorillard Corporation using the absorption costing method? $44,375.00 $35,625.00 $70,000.00 $210,937.50

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1 Direct material 1500 2 Direct labor 1000 3 Variable factory overhead 750 ... View the full answer