Inventory Valuation under Absorption Costing and Variable Costing

At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Line Item Description	Cost
Direct materials	$28.90
Direct labor	13.10
Fixed factory overhead	6.30
Variable factory overhead	5.50

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

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 blank 1 Variable costing fill in the blank 2