BC Ltd manufactures a single product; the standard costs per unit being variable manufacturing $9.50, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year.

Information about BC Ltd's production activity for the year is as follows:

Sales125,000 units

Production150,000 units

Opening inventory6,000 units

What is the value of closing inventory of finished goods under variable costing?

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