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Data for a firm's first year of operation is given below. The firm uses absorption costing.
Units produced ( no work in process) 6000
Units sold 5000
Units in ending inventory of finished goods 1000
Sales price for each unit. $75
Variable manufacturing costs for each unit $30
Variable selling and admin, expenses for each unit $16
Fixed manufacturing costs for the year $90,000
Fixed selling and admin. Expenses for the year $65,000
The cost of the goods sold for the year is :
(A) $270,000
(B) $225,000
(C) $150,000
(D) $45,0000
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