Illinois Company reported the following informationabout the production and sales of its only produc
Illinois Company reported the following informationabout the production and sales of its only product during its firstmonth of operations:
Sales($225 perunit) $405,000
Directmaterials used $176,000
Directlabor $100,000
Variablefactoryoverhead $44,000
Fixedfactoryoverhead $80,000
Variableselling and administrativeexpenses $20,000
Fixedselling and administrativeexpenses $10,000
Ending inventories:
Directmaterials -0-
WIP -0-
Finishedgoods 400 units
The cost of goods sold under variable costingis_____.
a. $320,000
b. $360,000
c. $288,000
d. $272,000