INVENTORY VALUATION UNDER ABSORPTION AND VARIABLE COSTING The following information pertains to Gabon Inc. for last year:

Beginning inventory in units —

Units produced 20,000 Units sold 17,200 Costs per unit:

Direct materials $8.00 Direct labor $4.00 Variable overhead $1.50 Fixed overhead* $4.15 Variable selling expenses $3.00 Fixed selling and administrative costs $24,300

*Fixed overhead totals $83,000 per year.

Required:

. Calculate the cost of one unit of product under absorption costing.

. Calculate the cost of one unit of product under variable costing.

. How many units are in ending inventory?

. Calculate the cost of ending inventory under absorption costing.

. Calculate the cost of ending inventory under variable costing Exercise