Baldwin, Inc., manufactured 700 units of its new product, Whiz Ball, in 19X1. Whiz Ball’s variable and fixed manufacturing costs per unit were $6 and $2, respectively. The inventory on December 31, 19X1, consisted of 100 Whiz Balls. There was no inventory of Whiz Balls on January 1, 19X1. mlo4 Required:

Calculate the change in the dollar amount of inventory on December 31, 19X1, if the direct costing method was used instead of the absorption costing method.