For 2014, Nichols, Inc., had sales of 140,000 units and production of 200,000 units. Other information for the year included:

Direct manufacturing labor $150,000

Variable manufacturing overhead 100,000

Direct materials 150,000

Variable selling expenses 100,000

Fixed administrative expenses 100,000

Fixed manufacturing overhead 200,000

There was no beginning inventory.

Required:

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

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