Answer:
Ending inventory = $270,000
Explanation:
Given:
Total produced = 60,000 unit
Sold unit = 50,000 unit
Direct materials = $15 per unit
Direct labor = $9 per unit
Variable overhead = $3 per unit
Computation:
Variable Cost per unit = Direct materials + Direct labor + Variable overhead
Variable Cost per unit = $15 + $9 + $3
Variable Cost per unit = $27
Computation ending inventory under variable costing:
Ending inventory = (Unsold Units)Variable Cost per unit
Ending inventory = (60,000 - 50,000)$27
Ending inventory = $270,000
