1. Amalgamated Glass and Mirror Inc. had sales of 37,500 units and production of 50,000 units. Other information for the year included:

Direct manufacturing labour $375,000

Variable manufacturing overhead 200,000

Direct materials 300,000

Variable selling expenses 200,000

Fixed administrative expenses 200,000

Fixed manufacturing overhead 400,000

There was no beginning inventory.

Required:

a. Compute the ending finished goods inventory under both absorption and variable costing.

b. Compute the cost of goods sold under both absorption and variable costing.