Which of the following statements is true of absorption costing? a. It is used only for internal reporting purposes. b. It assigns all manufacturing costs to the product. c. It treats fixed selling overhead as a product cost. d. It treats fixed manufacturing overhead as a period cost. The following data relates to Alpha Company. 25,000 19,000 Units in beginning inventory Units produced Units sold ($350 per unit) Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative expenses $35 $50 160,000 Determine the value of ending inventory under variable costing. a. $1,050,000 b. $570,000 c. $690,000 d. $750,000 The following information relates to Diamond Inc. 2,000 Units sold ($400 per unit) Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative expenses $30 200,000 Determine the cost of goods sold under absorption costing. a. $360,000 Ob. $500,000 c. $400,000 Od. $540,000