Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $38.20 Direct labor 18.80 Fixed factory overhead 6.60 Variable factory overhead 5.80 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 $ Variable costing $ Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 2,000 units and sold 1,700 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $578,000 Variable cost of goods sold: Variable cost of goods manufactured Inventory, March 31 $326,000 (48,900) Total variable cost of goods sold (277,100) Manufacturing margin $300,900 Total variable selling and administrative expenses (69,700) Contribution margin $231,200 Fixed costs: Fixed manufacturing costs $150,000 Fixed selling and administrative expenses 45,900 Total fixed costs (195,900) Operating income $35,300 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing