Answer : C) $12,000
Working notes for the above answer is under
As per the information provided in the comments about 120 Whitney, Inc we can prepare the cost per Units as follow
| Valuation as per Absortion costing | |
| Variable costs per unit Manufacturing | 10 |
| FiXed costs in total | |
| Manufacturing =18000/9000 |
2 |
| 12 | |
| Ending inventory under absorption costing: =18*1000 |
12000 |
Under Absorption costing we should not consider the Selling Fixed cost and selling variable cost
120 Whitney, Inc., produces a single product. The following data pertain to one month’s operations: uploaded image The carrying value on the balance sheet of the ending finished goods inventory under absorption costing would be: A) $16,000 B) $10,000 C) $12,000 D) $21,000