I do not know how to solve this problem. Company produced 9,600 units during hte past year, but only 8,500 of hte units were sold.

Direct Materials. 95,500, Direct Labor 28,500, Variable Manufacturing overhead 20,000, fixed manufacturing overhead 57,600, fixed selling and admin expenses 69,000, vairable selling and admin expenses 11,000. I got a finished goods inventory cost of 23,100. Where I am complete lost is what is which costing method, absorption or vairable would show. a higher net income for the year. I know it has something to do with the remaining inventory.