In its first year of operations, XYZ Inc. produced 10,000 units and sold 9,000 units. Which of the following statements is correct? Explain your reasoning. a. Some fixed manufacturing overhead costs were deferred in ending inventory under absorption costing. b. Some fixed manufacturing overhead costs were deferred in ending inventory under variable costing. c. Some fixed manufacturing overhead costs were released from beginning inventory under absorption costing. d. Some fixed manufacturing overhead costs were released from beginning inventory under variable costing.

Can fixed manufacturing overhead costs be released? If so give an example.