Absorption and Variable Costing; Inventory Valuation

Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct Materials	$500
Variable Overhead	$440
Fixed Overhead	$160

The 100 units of beginning inventory for March had an absorption costing value of $90,000 and a variable costing value of $76,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.

Compute Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory method was used.

	Ending Inventory
Absorption Costing	$ (Answer)
Variable Costing	$ (Answer)