Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $59, of which $41 is variable. No units were on hand at the beginning of 201 5. During 2015 and 2016, the only product manufactured was sold for $93 per unit, and the cost structure did not change. Scott uses the firstin, firstout inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 2015 120,000 90,000 2016 120,000 130,000 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 $ 0 a: $ 0 x Cost of goods sold: Beginninginventory 0 v 0 x Production 0 x 0 x Goods available 0 x 0 X Less: Endinginventory 0 x O x Cost ofgoods sold 0 x O x I Gross profit $ 0 at $ 0 x Production O X O X Goods available O X O X Less: Ending inventory O X O X Cost of goods sold 0 X O X Gross profit $ 0 x $ O X b. Prepare gross profit computations for 2015 and 2016 using variable costing. Do not use negative signs with your answers. Variable Costing 2015 2016 Sales $ 0 x $ O X Variable cost of goods sold: Beginning inventory OV O X Production O X O X Goods available O X O X Less: Ending inventory O X O X Variable cost of goods sold O X O X Less: Fixed manufacturing costs O X O X Gross profit $ 0 x $ O X