Use the information from Exercise 17.24. The production variable cost ($40,000) includes $25,000 in direct materials and $15,000 in direct labour.

Required:

A. Using the throughput costing method, (1) calculate the cost of ending inventory and (2) prepare an income statement for the current period.

B. Reconcile income under the throughput costing method with income under the variable costing method.

Information from Exercise 17.24:

In the prior period, 5,000 units were produced and sold; revenue was $200,000; and fixed costs were $60,000 for manufacturing and $50,000 for selling and administration. Variable costs were $40,000 for manufacturing and $30,000 for selling and administration. In the current period, 5,000 units were produced and 4,500 were sold. No changes occurred in prices or costs between the periods.