173. CSO: 1C1e LOS: 1C1g
Bethany Company has just completed the first month of producing a new product but has
not yet shipped any of this product. The product incurred variable manufacturing costs of
$5,000,000, fixed manufacturing costs of $2,000,000, variable marketing costs of
$1,000,000, and fixed marketing costs of $3,000,000.
If Bethany uses the variable cost method to value inventory, the inventory value of the
new product would be
a. $5,000,000.
b. $6,000,000.
c. $8,000,000.
d. $11,000,000.
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