In Henkel Company, 50,000 units are produced and 40,000 units are sold. Variable manufacturing costs per unit are $8 and fixed manufacturing costs are $120,000. The cost of the ending finished goods inventory under each costing approach is:

Absorption Costing Variable Costing

a. 1,120,000 100,000

b. $104,000 $ 80,000

c. 104,000 100,000

d. 112,000 80,000