Question: Indirect labor (variable) $900,000 Indirect materials (variable) 600,000 Other variable manufacturing overhead 1,500,000 Fixed manufacturing overhead 2,400,000 Fixed administrative expenses 800,000 Fixed selling expenses 450,000

Indirect labor (variable)

$900,000

Indirect materials (variable)

600,000

Other variable manufacturing overhead

1,500,000

Fixed manufacturing overhead

2,400,000

Fixed administrative expenses

800,000

Fixed selling expenses

450,000

Variable selling expenses, per unit

40

Direct labor, per unit

50

Direct materials, per unit 25

Last year, Green Lawn Company produced 300,000 units and sold 280,000 units. Beginning inventory was zero. During the period, the following costs were incurred:

Required:

A. Compute the dollar amount of ending inventory using the Absorption costing. $

B. Compute the dollar amount of ending inventory using the Variable costing. $

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