What its ending inventory would be greater

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Question - A company had no beginning inventory, and it sold 250,000 units during the year and at the end of the year they had 30,000 still in finished goods. During the year, they incurred fixed factory costs of $560,000 and variable factory costs of $800,000. If the company used absorption costing instead of variable costing, what its ending inventory would be greater?

A. $81,250

B. $67,200

C. $60,000

D. None of the amounts are correct.

Reference no: EM132927918

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