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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
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