kirk company gathered the subsequent information

Question

Kirk Company gathered the subsequent information for the year ended 31^st December, 2015:

Units produced 45,000

Units expected to be produced 45,000

Units sold 43,200

Direct labor $137,200

Direct materials used $126,400

Fixed selling and administrative expenses $51,000

Variable selling and administrative expenses $58,000

Fixed manufacturing overhead $83,250

Variable manufacturing overhead $73,900

Gross margin $171,200

Direct materials inventory, 31^st December, 2015 0

Direct materials inventory, 31^st December, 2014 0

Work-in-process inventory, 31^st December, 2015 0

Work-in-process inventory, 31^st December, 2014 0

Finished goods inventory, 31^st December, 2014 0

Required:

A) Under absorption costing, evaluate the cost of the finished goods inventory on 31^st December, 2015

B) Under variable costing, evaluate the cost of the finished goods inventory on 31^st December, 2015