Using variable and absorption costing \\ The following production data came from the records of Ad-Nik Athletic Enterprises for the year ended December 31, 2008:

During the year, 40,000 units were manufactured but only 35,000 units were sold. Determine the effect on inventory valuation by computing the following:
1. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using variable costing.
2. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using absorption costing.

Materials Labor Variable factory overhead Fixed factory overhead $480,000 260,000 44,000 36,800