Comparative income statements- variable and absorption costing

Using the information presented in E10-1, prepare comparative income statements for March (a) under absorption costing and (b) under variable costing.

Reference:

Computing unit cost and cost of inventory- variable and absorption costing

Verset Products Co. uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March:

Direct materials.............................................$200,000 Direct labor...................................................$100,000 Variable factory overhead...............................$80,000 Fixed factory overhead..................................$60,000 Selling and administrative expenses...............$40,000 Units produced...............................................25,000 Units sold......................................................20,000 Selling price per unit........................................$25

There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1) Unit cost of production under absorption costing and variable costing 2) Cost of the ending inventory under absorption costing and variable costing.