Q8.66: For the past year, My Company produced 55,000 units of its only product. The following information is available for this product: Selling price Variable manufacturing costs Variable selling and admin costs Fixed manufacturing costs Fixed selling and admin costs Per Unit $3.50 $0.75 $0.10 $0.25 $0.05 Units Beginning inventory Ending inventory 35,000 Which of the following statements is true? The cost of goods sold under absorption costing will be greater than the cost of goods sold under variable costing by $5,000. B The cost of goods sold under variable costing will be greater than the cost of goods sold under absorption costing by $5,000. The cost of goods sold under variable costing will be greater than the cost of goods sold under absorption costing by $875. D The cost of goods sold under absorption costing will be greater than the cost of goods sold under variable costing by $875