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