Lorillard Corporation has the following information for April, May, and June 2014: There were no beginning inventories for April 2014, and all units were sold for $50. Costs are stable over the three months.
What is the April ending inventory for Lorillard Corporation using the variable costing method?
A) $312,500
B) $187,500
C) $121,875
D) $140,000

Question

Lorillard Corporation has the following information for April, May, and June 2014:  There were no beginning inventories for April 2014, and all units were sold for $50. Costs are stable over the three months.
What is the April ending inventory for Lorillard Corporation using the variable costing method?
A) $312,500 
B) $187,500 
C) $121,875 
D) $140,000

Quizplus · Accepted Answer

The Answer of Lorillard Corporation has the following information for April, May, and June 2014:  There were no beginning inventories for April 2014, and all units were sold for $50. Costs are stable over the three months.
What is the April ending inventory for Lorillard Corporation using the variable costing method?
A) $312,500 
B) $187,500 
C) $121,875 
D) $140,000

Lorillard Corporation Has the Following Information for April, May, and June