The following information pertains to Finest Corporation based on Variable Costing:

Selling price per unit $41

Standard fixed manufacturing costs per unit $20

Variable selling and administrative cost per unit $4

Fixed selling and administrative costs $16,000

Beginning inventories:

Units ?

Standard fixed manufacturing cost $40,000

Standard variable manufacturing cost $20,000

Units produced 10,000 units

Units sold 9,600 units

Assume the unit standard costs data for the beginning and ending inventories remained constant during the period.

Required

A. What was the total standard cost of the ending inventory under absorption costing.

B. Reconcile the difference in retained earnings at the end of the period under

absorption costing and variable costing?