Question - Barron Company manufactured 150,000 units during the year but only sold 130,000 of these units. At the beginning of the year, Barron had no beginning finished goods inventory. The following unit costs were incurred during the year:

Variable manufacturing cost $3.00

Variable selling cost $0.50

Fixed manufacturing cost $4.00

Fixed selling cost ($300,000 total) $2.00

Using absorption costing, what is the value of Barron's finished goods inventory at the end of the year?

$80,000

$60,000

$120,000

$140,000