Asian Iron began last year with no inventories. During the year, 10,500 units were produced, of which 9,400 were sold. Data concerning last year’s operations appear here (in New Taiwan dollars, NT$):

Revenue ..................NT$32,900

Variable direct materials costs ....... 2,300

Variable direct labor costs ......... 3,300

Variable manufacturing overhead ....... 2,800

Variable selling ............... 940

Fixed manufacturing overhead ........ 8,250

Fixed selling and administrative costs ..... 14,560

Variable manufacturing costs reflect the variable cost to produce the number of units manufactured. However, variable selling costs are not incurred until the units are sold, so they reflect the cost for the number of units sold. Asian Iron allocates actual manufacturing overhead costs to inventory based on actual units produced.

REQUIRED

A. Calculate the value of ending inventory on the balance sheet under the following:

1. Variable costing

2. Absorption costing

3. Throughput costing

B. Calculate operating income under each of the following methods:

1. Variable costing

2. Absorption costing

3. Throughput costing

C. Estimate the variable costing operating income if 12,110 units were produced and sold in a year.