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  3. 2. inventory costs- absorption vs direct costing.

2. Inventory costs- absorption vs direct costing. The following information is available for Keller Corporation's...

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2. Inventory costs- absorption vs direct costing. The following information is available for Keller Corporation's new product line: Sales price per unit 15 Variable manufacturing cost per unit of production. Total annual fixed manufacturing cost... 25,000 Variable administrative cost per unit of production.. Total annual fixed marketing and administrative expenses15,000 8 There was no inventory at the beginning of the year. Normal capacity is 12,500 units. During the year, 12,500 units were produced and 10,000 units were sold. Required: (1) Ending inventory, assuming the use of direct costing (2) Ending inventory, assuming the use of absorption costing. (3) Total variable cost charged to expense for the year, assuming the use of direct costing. (4) Total fixed cost charged to expense for the year, assuming the use of absorption costing (AICPA adapted)

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