Steele Ltd. has the following information for January, February, and March 2011: There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. What is the February ending inventory for Steele Ltd. using the absorption costing method?
A) £39,000
B) £45,000
C) £135,000
D) £300,000

Question

Steele Ltd. has the following information for January, February, and March 2011:  There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. What is the February ending inventory for Steele Ltd. using the absorption costing method?
A) £39,000 
B) £45,000 
C) £135,000 
D) £300,000

Quizplus · Accepted Answer

The Answer of Steele Ltd. has the following information for January, February, and March 2011:  There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. What is the February ending inventory for Steele Ltd. using the absorption costing method?
A) £39,000 
B) £45,000 
C) £135,000 
D) £300,000