Answer:
Bondware Inc.
FIFO Inventory Method:
Ending Inventory (60 units):
Absorption Costing = $66,000
Variable Costing = $56,400
Explanation:
a) Data and Calculations:
Unit Production Costs for March:
Direct materials     $500 
Variable overhead   440 
Total variable cost $940
Fixed overhead        160
Total manufacturing
   costs per unit   $1,100
Calculation of Ending Units of Inventory:
Beginning units     100
Units produced = 500
Units sold =         (540)
Ending units =        60
Beginning Inventory, 100 units:
Absorption costing value = $90,000
Variable costing value = $76,000
FIFO Inventory Method:
Ending Inventory:
Absorption Costing = 60 * $1,100 = $66,000
Variable Costing = 60 * $940 =       $56,400