Natural Looks and Scents manufactures beauty supplies. The information for the current year is listed below.

2020

Selling price per package

$50

Sales

130,000

Beginning inventory

20,000

Production

120,000

Ending Inventory

???

Standard variable cost per Unit for the current year is given below

Direct material

$15.50

Labour

13.50

Overhead

5.00

Variable selling and admin

0.80

Annual fixed cost for current year actual and budgeted were:

Production$357,500

Selling and administration120,000

The fixed overhead rate under absorption costing is based on a practical capacity of 130,000 units per year. All variances and under or overapplied overhead are written off to cost of goods sold.

Complete the following table for absorption costing and variable costing

Absorption costing

Variable costing

Adjusted COGS

Gross Profit/Contribution Margin

Operating Income

Ending Inventory