Carr company produces a single product. last year, carr manufactured 27,120 units and sold 21,800 units. production costs for the year were as follows: fixed manufacturing overhead $461,040 variable manufacturing overhead $208,824 direct labor $124,752 direct materials $222,384sales were $915,600, for the year, variable selling and administrative expenses were $128,620, and fixed selling and administrative expenses were $197,976. there was no beginning inventory. assume that direct labor is a variable cost. under absorption costing, the ending inventory for the year would be valued at: (do not round intermediate ) $269,500(b) $261,000(c) $227,000(d) $199,500

The direct labor is a variable cost.Under absorption costing, the ending inventory for the year would be valued 199500

Explanation:

product per unit = Total cost /number of units produced

= (222384+124752+208824+461040) / 27120

= 1017000/ 27120

product per unit = $ 37.5 per car

Ending inventory = (27120- 21800) *37.5

= 5320 *37.5

Ending inventory= 199500  

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