Part 1. The carrying value of finished goods inventory at the end of the year under variable costing would be:

a. $8,800 greater than under absorption costing.

b. $5,800 less than under absorption costing.

c. The same as absorption costing.

d. $8,800 less than under absorption costing.

Part 2. Under absorption costing, the cost of goods sold for the year would be:

a. $345,600

b. $278,400

c. $206,400

d. $360,000

The Pacific Company manufactures a single product. The following data relate to the year just completed Variable cost per unit: Production S43 $15 Selling and administrative Fixed costs in total: Production $145,000 Selling and administrative $95,000 During the last year, 5,000 units were produced and 4,800 units were sold. There were no beginning inventories