Illinois Company reported the following information about the production

Illinois Company reported the following information about the production

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 

 

Illinois Company reported the following information about the production

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

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