Lorillard Corporation has the following information for April, May, and June 2016: Production costs per unit (based on 12,500 units) are as follows:
There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three
Months.
What is the May ending inventory cost for Lorillard Corporation using the variable costing method?
A) $182,812.50
B) $187,500
C) $312,500
D) $162,500

Question

Lorillard Corporation has the following information for April, May, and June 2016:  Production costs per unit (based on 12,500 units) are as follows:
 There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three
Months.
What is the May ending inventory cost for Lorillard Corporation using the variable costing method?
A) $182,812.50 
B) $187,500 
C) $312,500 
D) $162,500

Quizplus · Accepted Answer

The Answer of Lorillard Corporation has the following information for April, May, and June 2016:  Production costs per unit (based on 12,500 units) are as follows:
 There were no beginning inventories for April 2016, and all units were sold for $50. Costs are stable over the three
Months.
What is the May ending inventory cost for Lorillard Corporation using the variable costing method?
A) $182,812.50 
B) $187,500 
C) $312,500 
D) $162,500

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