Variable and Absorption Costing Frances Manufacturing makes only one product with total unit manufacturing costs of $67, of which $39 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $101 per unit, and the cost structure did not change. Frances uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 2015 100,000 70,000 2016 100,000 120,000 a. Prepare gross profit computations for 2015 and 2016 using absorption costing. Do not use negative signs with your answers. Absorption Costing 2015 2016 Sales Cost of goods sold: Beginning inventory $7,070,000 12,120,000 Production Goods available