For the current year, Bose Inc., had sales of 45,000 units and production of 55,000 units. Other information for the year included:

Direct manufacturinglabour$169,500

Variable manufacturing overhead73,000

Direct materials62,000

Variable selling expenses20,000

Fixed administrative expenses225,000

Fixed manufacturing overhead125,000

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.