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Morningstar Corporation produces a single product. Last year, its fixed manufacturing overhead costs were $4,500 and its variable production costs were $7,500. During the year,
Morningstar Corporation produces a single product. Last year, its fixed manufacturing overhead costs were $4,500 and its variable production costs were $7,500. During the year, it sold 2,400 units and produced 3,000 units with no units in its beginning inventory. What was its ending inventory value under absorption costing and its ending inventory value under variable costing?
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