In the Klein Company, 50,000 units are produced and 40,000 units are sold.

In the Klein Company, 50,000 units are produced and 40,000 units are sold. Variable manufacturing costs per unit are $8 and fixed manufacturing costs are $160,000. The cost of the ending finished goods inventory under each costing approach is:

Absorption

Variable

Costing

Costing

$112,000

$ 80,000

$112,000

$100,000

$120,000

$80,000

$120,000

$100,000