Inventory Valuation under Absorption Costing and Variable Costing

At the end of the first year of operations, $5,700$ units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Line Item Description Cost

Direct materials $$36\mathrm{.}10$

Direct labor $16\mathrm{.}90$

Fixed factory overhead $6\mathrm{.}90$

Variable factory overhead $6\mathrm{.}10$

Determine the cost of the finished goods inventory reported on the balance sheet under $($a$)$ the absorption costing concept and $($b$)$ the variable costing concept.

Absorption costing fill in the blankFeedback

Check My Work

Recall that the fixed factory overhead cost is included in absorption costing, while only direct

materials and labor and variable factory overhead are included in variable costing.

Variable costing fill in the blank