Answer:
Instructions are below.
Step-by-step explanation:
Giving the following information:
5,200 units remained in the finished goods inventory.
direct materials $35
direct labor $16.80
fixed company overhead $5.60
variable factory overhead $4.90
The difference between the variable costing method and the absorption costing is that the last one includes the fixed overhead as a product cost.
A) Absorption costing:
Unit product cost= 35 + 16.8 + 5.6 + 4.9= $62.3
Ending inventory= 62.3*5,200= $323,960
B) Variable costing:
Unit product cost= 35 + 16.8 + 4.9= $56.7
Ending inventory= 56.7*5,200= $294,840