Inventory Valuation under Absorption and Variable Costing with Decrease in Ending Inventory The following information pertains to Chacon Inc. for last year: Beginning inventory in units Units produced Units sold Costs per unit: 5,000 20,000 23,700 Direct materials Direct labor Variable overhead Fixed overhead* Variable selling expenses $8.00 $4.00 $1.50 $4.15 $3.00 $24,300 Fixed selling and administrative expenses Fixed overhead totals $83,000 per year