Steele Corporation has the following information for January, February, and March: January February March Units produced 10,000
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Question:
Steele Corporation has the following information for January, February, and March:
| | January | February | March |
| Units produced | 10,000 | 10,000 | 10,000 |
| Units sold | 7,000 | 8,500 | 10,500 |
Production costs per unit (based on 10,000 units) are as follows:
| Direct materials | $12 |
| Direct labor | 8 |
| Variable factory overhead | 6 |
| Fixed factory overhead | 4 |
| Variable selling and admin expenses | 10 |
| Fixed selling and admin expenses | 4 |
There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three 10 months.
What is the February ending inventory for Steele Corporation using the absorption costing method?
a.$170,000
b.$204,000
c.$240,000
d.$119,000
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