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Panthers Company Reported the Following Information About the Production and Sales

Question 17

Multiple Choice

Panthers Company reported the following information about the production and sales of its only product during its first month of operations:  Sales $225 per unit)  $315,000 Direct materials used $160,000 Direct labor $100,000 Variable factory overhead $60,000 Fixed factory overhead $80,000 Variable selling and admiristrative expenses $20,000 Fixed selling and administrative expenses $30,000\begin{array}{lr}\text { Sales } \$ 225 \text { per unit) } & \$ 315,000 \\\text { Direct materials used } & \$ 160,000 \\\text { Direct labor } & \$ 100,000 \\\text { Variable factory overhead } & \$ 60,000 \\\text { Fixed factory overhead } & \$ 80,000 \\\text { Variable selling and admiristrative expenses } & \$ 20,000 \\\text { Fixed selling and administrative expenses } & \$ 30,000\end{array} Ending inventories: Direct materials -0-
WIP -0-
Finished goods 600 units
The ending inventory under absorption costing is_____.


A) $135,000
B) $120,000
C) $78,000
D) $96,000

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