BioClinic sells its product for $80 per unit. During 2025, it produced 120,000 units and sold 105,000 units. Costs per unit are: direct materials $25, direct labor $10, variable overhead $5, and variable operating expenses $3. Fixed costs are $840,000 manufacturing overhead, and $75,000 operating expenses. Assuming no variances were reported, no beginning inventory and the company uses variable costing, what will be reported as the ending inventory value?
A)$600,000.
B)$645,000.
C)$705,000.
D)$750,000.

Question

Quizplus · Accepted Answer

$25 + $10 + $5 = $40 per unit.
$40 x (120,000 - 105,000) = $600,000
DM per unit + DL per unit + VMOH per unit = variance cost per unit 
Var cost per unit x (units produced - units sold) = end inventory

BioClinic Sells Its Product for $80 Per Unit