Calculate the value of the ending inventory using both absorption
Absorption Costing:
Ending Inventory = Beginning Inventory + Cost of Goods Manufactured – Cost of Goods Sold
Ending Inventory = $50,000 + $150,000 – $120,000
Ending Inventory = $80,000
Variable Costing:
Ending Inventory = Beginning Inventory + Variable Production Costs – Variable Selling Expenses
Ending Inventory= $50,000 + $100,000 -$70,000
Ending inventory = $80,000
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