At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Cost Category                                   Dollar Amount Direct Materials                                 $85 Direct Labor                                       50 Fixed Factory Overhead                    25 Variable Factory Overhead                16 Determine the cost of the finished goods inventory reported on the balance sheet under a. the absorption costing concept and b. the variable costing concept.

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.