Variable and Absorption Costing Frances Manufacturing makes a product with total unit manufacturing cost of $64, of which $36 is variable. No units were on hand at the beginning of 2019. During 2019 and 2020, the only product manufactured was sold for $96 per unit, and the cost structure did not change. Frances uses the first-in, first-out inventory method and has the following production and sales for 2019 and 2020: Units Manufactured Units Sold 2019 90,000 70,000 2020 90,000 100,000 a. Prepare gross profit computations for 2019 and 2020 using absorption costing. Do not use negative signs with your answers. Absorption Costing 2019 2020 Sales $ 6,720,000 $ 9,600,000 Cost of goods sold: Beginning inventory 0 1,280,000 Production 5,760,000 5,760,000 Goods available 5,760,000 7,040,000 Less: Ending inventory 1,280,000 640,000 Cost of goods sold 4,480,000 6,400,000 Gross profit $ 2,240,000 $ 3,200,000