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 manuflacturting costs during the year were as follows: Direct materiais Direct labor Fixed factory overhead Variable factory overhead Determine the cost of the finished goods inventory reported on the balance sheet Absorption costing Variable eing 35.40 6.90 under (a) the absorption costing concept and (b) the varilable costing concept. MacBook Air 888 ,a 4 5