Inventory Valuation under Absorption and Variable Costing At the end of the first year of operations, 6,700 units remained in the finished goods inventory The unit manufacturing costs during the year were as follows Direct materials $29 60 Direct labor 13 20 Fixed factory overhead 7 00 Variable factory overhead 6 20 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 $

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Question: Inventory Valuation under Absorption and Variable Costing At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The

Inventory Valuation under Absorption and Variable Costing

At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Direct materials	$29.60
Direct labor	13.20
Fixed factory overhead	7.00
Variable factory overhead	6.20

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	$

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