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The following data are available for a company that produces and sells a single product.

The following data are available for a company that produces and sells a single product.

The company’s opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company’s closing finished goods inventory is:
A . 3,300 units
B . 1,700 units
C . 3,900 units
D . 8,900 units

Answer: A

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