Exercise 6-4 Variable costing income statement LO P2

Please help me find the answers to the last two questions of This Journal entry : 1. Number of units added to ( substracted from inventory ), and 2.Fixed cost added to inventory

Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing.

Sales (800 $1,050)	$	840,000
Cost of goods sold (800 $450)		360,000
Gross margin		480,000
Selling and administrative expenses		200,000
Net income	$	280,000

Additional Information

a.	Production cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production costthe latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced.
b.	The $200,000 in selling and administrative expense consists of $75,000 that is variable and $125,000 that is fixed.

Required

1.

Prepare an income statement for the current year under variable costing.

sales		840000
variable production cost	?
variable selling and administratives expenses	75000
Total variable cost		355000
contribution Margin		485000
Fixed selling and administratives cost	125000
fixed overhead cost	105000
Total fixed expenses		230000
Net income		255000
Net income under absorption costing is higher than net income under variable costing by		25000
Number of units added ( to substract from ) inventory		?
Fixed cost added to inventory		?