Reference no: EM132603077

Lasky Textiles Inc. produces and sells a decorative pillow. It has provided the following data concerning its most recent month of operations:

Selling price $126

Units in beginning inventory -Units produced 8,700

Units sold 8,400

Units in ending inventory 300

Variable costs per unit

Direct materials $30

Direct labor $48

Variable manufacturing overhead $3

Variable selling and administrative $7

Fixed costs:

Fixed manufacturing overhead $156,600

Fixed selling and administrative $151,200

Question 1: What total amount of cost would have been assigned to the finished goods inventory under the absorption costing method?

Option 1: $12,640

Option 2: $24,300

Option 3: $26,100

Option 4: $29,700