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Sprinkle Co sells its product for $20 per unit. During 2013, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labor $3, and variable overhead $1. Fixed costs are: $240,000 manufacturing overhead, and $30,000 selling and administrative expenses.
Ending inventory under variable costing is:
A) $90,000 B) $200,000 C) $130,000 D) $450,000
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