1. Variable Costing vs Absorption Costing (5pts): Zintendo, Inc. is a manufacturer of gaming systems and has provided the following information for its first two years of operation:

		Per Unit:		Per Year:
Selling price		$349.00	Per unit sold
Manufacturing Costs:
Direct Materials		$56.50	Per unit produced
Direct Labor		$36.00	Per unit produced
Variable OH		$19.75	Per unit produced
Fixed OH				$3,940,000
Selling & Administrative expenses:
Variable Selling and Administrative		$16.10	per unit sold
Fixed Selling and Administrative				$2,087,995

	2019	2020
Units Produced	500,000	500,000
Units Sold	493,000	507,000

1. Calculate the value of the units in ending inventory as of 12/31/2019 using absorption costing. (0.5pt)
2. Calculate the value of the units in ending inventory as of 12/31/2019 using variable costing. (0.5pt)
3. Prepare the income statement for the year ended 12/31/2019 using absorption costing. Be sure to use proper formatting, including a formal heading which includes the firms name, the name of the statement, and the period. (1pts)
4. Prepare the income statement for the year ended 12/31/2019 using variable costing. Be sure to use proper formatting, including a formal heading which includes the firms name, the name of the statement, and the period. (1pts)
5. Prepare the income statement for the year ended 12/31/2020 using absorption costing. Be sure to use proper formatting, including a formal heading which includes the firms name, the name of the statement, and the period. (1pts)
6. Prepare the income statement for the year ended 12/31/2020 using variable costing. Be sure to use proper formatting, including a formal heading which includes the firms name, the name of the statement, and the period. (1pts)