1. Inventory Valuation under Absorption and Variable Costing At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $75 Direct labor 35 Fixed factory overhead 15 Variable factory overhead 12 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing $