Questions 5 and 6 are based on the following information. Precision Co's records for the year ended December 31 show that no finished goods inventory existed on January 1 and no work-in-process inventory at the beginning or end of the year Sales $1,400,000 Manufacturing costs: Variable 630,000 Fixed 315,000 Operating expenses: Variable 98,000 Fixed 140,000 Units produced 70,000 units Units sold 60,000 units 5. What is Precision's finished goods inventory cost at December 31 under the variable costing method? $90,000 $104,000 $105,000 $135,000 Under the absorption costing method, Precision's operating profit for the year is $217,000 $307,000 $352,000 $374,500 5. a. b. C. d. 6. b. d